Super Micro Computer (SMCI) has been one of the best performing companies this year.
Manufacturers of high-performance, highly efficient computer servers play a key role in the development of artificial intelligence.
The company’s stock has benefited from the rise of Nvidia (NVDA) and other companies involved in developing and marketing AI applications.
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Supermicro’s stock price rose 264% in the first quarter alone. It fell 21% in the second quarter but is up 220.1% for the year. Shares were trading at $909.96 on Friday, up 11.1% in the first nine trading days of July.
It’s no wonder that Nasdaq (NDAQ) has decided to make Supermicro Computer a constituent stock of the Nasdaq 100 Index and the Nasdaq 100 Equal Weight Index, effective before the market opens on July 22nd.
The Nasdaq-100 is made up of the 100 largest non-financial companies included in the Nasdaq index.
The stocks included are all of the stocks collectively known as the “Magnificent Seven”: Apple (AAPL), Amazon.com (AMZN), Google’s parent company Alphabet (GOOGL), Facebook’s parent company Meta Platforms (META), Microsoft (MSFT), Nvidia, and Tesla (TSLA).
Huge revenue and profit increase
Founded in 1993 by Charles Liang, Supermicro earned $855 million, or $15.68 a share, on sales of $9.6 billion through the third quarter. Revenue was up 95% and profits up 86% from a year ago.
The company raised its fourth-quarter revenue outlook to $5.1 billion to $5.6 billion and now expects full-year revenue of $14.7 billion to $15.1 billion, up from its previous full-year revenue forecast of $9.5 billion to $10.5 billion.
The company plans to announce its fourth-quarter and full-year results around Aug. 13.
Supermicro CEO Charles Liang (right) and Nvidia CEO Jensen Huang (left) attend the Computex conference in Taipei, Taiwan in June.
Bloomberg/Getty Images
A sad year for the long-established retailer
One big loser in this move is struggling pharmaceutical giant Walgreens Boots Alliance (WBA).
Other AI strains:
Despite projecting $139 billion in revenue for fiscal 2023, Walgreens sales are down 56% year over year and 44.2% in the second quarter alone, and are down 5% so far in July.
Shares closed at $11.50 on Friday, up 0.6% from the previous day and 2.1% from the previous week. Not much solace in what has been nothing short of a bad, terrible, very bad year.
Walgreens was removed from the Dow Jones Industrial Average on February 26th and was replaced by Amazon.
The story continues
And the company’s future in the S&P 500 looks shaky.
In January, S&P Dow Jones Indices revised the minimum requirements for stocks to be included in the S&P 500. The minimum market capitalization for S&P 500 constituents is now $12.7 billion. Walgreens has a market capitalization of $10.52 billion.
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