Super Micro Computer stock popped 20% in Monday morning trading after the company was selected on Friday to join the S&P 500.
Shares of the server and computer infrastructure company have been up more than twentyfold 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 industrywide 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 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 Monday.
Super Micro’s revenue more than doubled to $3.66 billion in the quarter ending December, and analysts estimate sales will 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.