Super Micro Computer (SMCI) has been one of the year’s stellar performers.
The maker of high-performance, high efficiency computer servers is a key cog in the development of artificial intelligence.
Its stock has basked in the glow of the emergence of Nvidia (NVDA) and others involved in developing and marketing AI applications.
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Super Micro shares jumped 264% in the first quarter alone. Despite a 21% decline in the second quarter, the shares are still up 220.1% for the year. At $909.96 on Friday, the shares are up 11.1% in the first nine trading days of July.
No wonder that Nasdaq (NDAQ) has decided to make Super Micro Computer a component of its Nasdaq-100 and Nasdaq-100 equal-weighted indexes. The move takes effect before trading opens on July 22.
The Nasdaq-100 is composed of 100 of the largest nonfinancial companies in the Nasdaq Index.
Its membership includes all of the stocks collectively known as the Magnificent Seven: Apple (AAPL) , Amazon.com (AMZN) , Google-parent Alphabet (GOOGL) , Facebook-parent Meta Platforms (META) , Microsoft (MSFT) , Nvidia, and Tesla (TSLA) .
Massive revenue, profit gains
Through its fiscal third quarter, Super Micro, founded in 1993 by Charles Liang, earned $855 million, or $15.68 per share on revenue of $9.6 billion. Revenue was up 95% from the year before, with earnings up 86%.
The company boosted fourth-quarter revenue guidance to $5.1 billion to $5.6 billion, with full-year revenue expected at $14.7 billion to $15.1 billion. That’s up from an original full-year revenue estimate of $9.5 billion to $10.5 billion.
The company is expected to report fourth-quarter and full-year results around Aug. 13.
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A sad year for a venerable retailer
There is a loser in this move, and it is painful: Walgreen Boots Alliance (WBA) , the struggling giant pharmaceutical retailer.
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Despite generating revenues of $139 billion in fiscal 2023, Walgreen is down 56% on the year and fell 44.2% in the second quarter alone. It’s off 5% so far in July.
It finished Friday at $11.5, up 0.6% on the day and 2.1% on the week. Not much solace in what can only be described as a terrible, no-good, very bad year.
Walgreen was taken out of the Dow Jones Industrial Average as of Feb. 26, replaced by Amazon.
And its future in the S&P 500 looks shaky.
In January, S&P Dow Jones Indices revised its minimum requirements for S&P 500 membership. The minimum market capitalization for S&P 500 membership is $12.7 billion. Walgreen has a market cap of $10.52 billion.
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