Super Micro Computer Stock Is Soaring Monday: What's Going On?

Super Micro Computer Inc SMCI shares are trading higher Monday after the company was selected to join the S&P 500.

What To Know: S&P Dow Jones Indices announced late Friday that Super Micro and Deckers Outdoor will replace Whirlpool and Zions Bancorp in the S&P 500 respectively.

The changes are part of the S&P Dow Jones Indices’ quarterly rebalance and are set to go into effect prior to the open of trading on March 18. S&P 500 inclusion often leads to a temporary increase in share prices as ETFs and mutual funds that track the index adjust portfolios and buy the stock.

Goldman Sachs analyst Michael Ng also initiated coverage on Super Micro with a Neutral rating on Monday and announced a price target of $941.

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Is SMCI A Good Stock To Buy?

Wall Street analysts view Super Micro on the whole as a Neutral, given the history of coverage over the past three months. Matt Bryson from Wedbush in Super Micro Computer is the most optimistic, expecting a 112% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, Super Micro rose 292.26%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 103.27% over the past year.

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SMCI Price Action: Super Micro shares are up more than 820% over a one-year period. The stock was up 16.4% at $1,053.41 at the time of publication, according to Benzinga Pro.

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