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Super Micro Computer stock popped 15% in premarket trading on Monday morning after the company was selected to join the S&P 500 later this month.
Shares of the server and computer infrastructure have been up more than 20-fold during the last two years and over 200% since the start of the year.
The record rally in Super Micro’s stock, driven by the industry-wide artificial intelligence boom, has propelled the company’s market cap above $50 billion. The median market cap for S&P 500 companies is $33.7 billion.
Super Micro will replace Whirlpool in the S&P 500 starting at market open on March 18.
Goldman Sachs analysts initiated Super Micro stock with a neutral rating and a 12-month target price of $941 in an investor note on Monday.
Super Micro’s revenue more than doubled to $3.66 billion in the quarter ending December, and analysts estimate sales to more than triple this quarter. The company is a primary vendor for building out Nvidia‘s AI servers.
—CNBC’s Michael Bloom and Kif Leswing contributed to this report.
This story originally appeared on CNBC
