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Super Micro rises as AI server maker looks to join the S&P 500

(Reuters) – Shares of Super Micro Computer rose 13.5% in extended trading on Friday after announcing that the seller of AI-optimized servers will join the S&P 500.

Super Micro and Deckers Outdoor Corp will be added to the S&P 500 before the start of trading on Monday, March 18, coinciding with a quarterly rebalancing of Wall Street’s most followed stock benchmark, S&P Dow Jones Indices said in a news release.

These two companies will replace Whirlpool Corp and Zion Bancorporation, according to S&P Dow Jones Indices.

Index funds that track the S&P 500 are among the most popular investment vehicles on Wall Street, and those funds will need to buy shares of Super Micro and Deckers to stay in line with the benchmark’s makeup.

Such S&P 500 index funds have assets of about $7.8 trillion, according to Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices.

Super Micro sells high-end servers built with Nvidia’s top AI processors, and its stock has more than tripled this year.

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Because Super Micro’s stock market value exceeded $50 billion, investors had speculated that the company would be added to the S&P 500.

On Friday, investors traded nearly $10 billion worth of Super Micro stock, eclipsing trading in Wall Street heavyweights including Microsoft and Amazon.

The jump in after-hours trading adds to a 4.5% gain during Friday’s trading session.

Shares of Deckers rose 2.7% in extended trading, while Whirlpool fell 1.7% and Zion Bancorporation fell 2%.

(Reporting by Noel Randewich; Editing by Diane Craft)

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