Super Micro Computer and Deckers Outdoor are set to join the prestigious S&P 500 index, according to S&P Dow Jones Indices, marking a significant milestone for both companies. This announcement came after the market closed on Friday, signaling a notable shift in the composition of the index.
Replacing Whirlpool and Zions Bancorp, Super Micro Computer and Deckers Outdoor will transition from the S&P MidCap 400 index to the S&P 500 index. Conversely, Whirlpool and Zions Bancorp will move to the S&P MidCap 400 index as part of the reshuffling.
The changes are scheduled to take effect before the opening of trading on March 18, coinciding with the quarterly rebalance of the indexes. S&P Dow Jones Indices noted that the market values of the four companies better align with their respective new indexes.
Super Micro Computer, renowned for its servers facilitating artificial intelligence applications, has experienced a remarkable surge in its stock price, more than tripling this year alone. With shares closing at $905.48 in regular trading on Friday and climbing an additional 3.4% to $936 after hours, the company has emerged as a significant driver of gains in both the S&P MidCap 400 index and the Russell 2000 index, where it holds a prominent position.
With a current valuation exceeding $50 billion, Super Micro Computer is poised to become one of the largest constituents in the S&P 500 index upon its inclusion, underscoring its rapid ascent and growing market significance.
Deckers, recognized for its iconic Ugg shoes and the increasingly popular Hoka sneakers, boasts a valuation of approximately $22 billion, making it a notable addition to the S&P 500 index. With its shares rising by approximately 35% since the beginning of the year, Deckers has demonstrated significant growth and market appeal. Closing at $903.29 in regular trading on Friday, the stock continued its upward trajectory, gaining an additional 1.3% in after-hours trading.
In contrast, both Whirlpool and Zions are valued at around $6 billion each. Whirlpool experienced a slight decline of 0.9% to $105.85 in after-hours trading, while Zions saw a 2% decrease, trading at $38. These movements reflect the shifting dynamics within the indices as companies transition between different market segments.