AI-stock darling to join Nasdaq-100

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 and others involved in developing and marketing AI applications.

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 July's first nine trading days.

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 comprises 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 ) .

Super Micro: 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, and earnings were 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.

A sad year for a venerable retailer

There is a loser in this move: 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.

Walgreens 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.

S&P Dow Jones Indices revised its minimum requirements for S&P 500 membership in January. The minimum market capitalization for S&P 500 membership is $12.7 billion, while Walgreens has a market cap of $10.52 billion.

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