SMCI stock climbs ahead of Nasdaq-100 inclusion

Super Micro Computer (NASDAQ:) shares climbed in Monday’s premarket trading, as investors reacted to the news of the AI server maker’s upcoming addition to the Nasdaq-100 Index (NDX).

SMCI stock will join the tech-heavy index before markets open on Monday, July 22, replacing pharmacy chain Walgreens Boots Alliance (NASDAQ:), according to an announcement by Nasdaq (NDAQ).

Shares climbed more than 3% ahead of the opening bell.

Nasdaq announced late Friday that Super Micro (SMCI), an AI server company, will also replace Walgreens (WBA) in the Nasdaq-100 Equal Weighted Index (NDXE) on that date.

Walgreens, whose stock has declined by over 60% in the past 12 months, will be removed from other indices, including the Nasdaq-100 Ex-Tech Sector Index (NDXX) and Nasdaq-100 ESG Index, on the same day.

In contrast, Super Micro (SMCI), which has surged more than 200% in the past year along with other tech stocks, will be considered for inclusion in indices like the Nasdaq-100 Tech Sector Index (NDXT) at the next quarterly rebalancing.

The move follows the recent announcement of SMCI’s departure from the Russell 2000, a small-cap stock index, which has shown minimal gains for the year so far, up just about 0.1%, after a 1% increase in the first half of 2024.

Starting the year with a market capitalization of just over $15 billion, the company is now valued at around $53.3 billion, with its stock more than doubling.

SMCI had become one of the largest holdings in the Russell 2000, representing over 1% of the index’s total market value, according to DataTrek. It contributed nearly two percentage points to the index’s return in the first half of 2024. Without SMCI, the index would have been in the red for the first six months.