Super Micro Computer To Join the S&P 500 With UGG-Maker Decker Outdoors

Key Takeaways

• Super Micro Computer is joining the S&P 500 after artificial intelligence has spurred outsized growth for the server company’s stock.
• Deckers Outdoor will also join the index on the back of resilient consumer spending on their popular brands like HOKA and UGG.
• The two will replace Whirlpool and Zion Bancorporation, the latter of which has struggled during the tumult in regional banks.

Super Micro Computer Inc. (SMCI) is riding the artificial intelligence wave into the S&P 500 joined by Deckers Outdoor Corp. (DECK) on the back of resilient consumer spending. Super Micro shares were up 13% in after-hours trading Friday.

The server and software provider and footwear company will replace Whirlpool Corp. (WHR) and Zion Bancorporation (ZION) after rebalancing. The changes will be made before the bell on March 18.

Super Micro’s stock has been on a tear up more than 217% since just the beginning of this year. Over a longer period, the gains are even more impressive. For example, Super Micro shares were trading close to $102 in early March last year, and soared to over $1,000 a share just a few weeks ago.

The company’s revenue has surged as AI demand has pushed up interest in their products and the analysts see an opportunity for more growth ahead.

Deckers Outdoor has also seen success, albeit to a lesser degree. The maker HOKAs and UGGs has seen 72% growth over the last six months, as consumers have continued to spend, buoying the economy. Whirlpool, however, has not benefitted from the same spending, cutting its outlook in its most recent earnings.

Zions Bank has been battered by the last tumultuous year for regional banks, down 19.75% in the last year. The institution’s stock took a steep dive after the failure of Silicon Valley Bank and while it has regained some ground, is now struggling as commercial real estate loans at regional lenders are being scrutinized.

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