Supermicro Stock Falls 10% Despite S&P 500 Addition as Investors Take Profits

• Super Micro Computer (SMCI) stock jumped initially as it was added to the S&P 500 index, but gave up gains and fell 10% by early afternoon • The sell-off seemed to be a "buy the rumor, sell the news" event as investors took profits after the recent run-up • Trading volume was below recent busy days, showing less overall interest in the stock currently • The decline contrasted with gains in other AI stocks ahead of Nvidia’s conference • Long-term, Supermicro is well positioned to benefit from AI growth, but should continue to see volatility in the near term