Super Micro Computer has made the Fortune 500 for the first time.
The San Jose-based IT company, which makes hardware that supports AI applications, thrived this year due to the high demand for AI. It entered the Fortune 500 at No. 498. Shortly after the market opened on Tuesday, shares of Super Micro Computer rose 0.11%, trading around $770.
The iconic annual list of the largest corporations in the United States ranks companies according to their revenue. In fiscal year 2023, Walmart retained its No. 1 position for the 12th consecutive year, followed by Amazon, Apple, UnitedHealth Group, and Berkshire Hathaway. This year’s list, announced Tuesday, is the 70th annual iteration.
Super Micro Computers has had a strong start to 2024, positioning itself as a leader in the rapidly growing AI market. The company was added to the S&P 500 index in March. Its stock has soared 172% so far this year and an astounding 3,988% in the past five years. In April, Loop Capital analyst Ananda Baruah said Super Micro Computer stock has more room to grow.
Read more: The Fortune 500 is here. These are the top 10 companies
It’s a good time to be an AI-related company: Nvidia, which makes AI chips, is up 138% since the start of the year.
In its latest earnings report, Super Micro Computers reported revenues of $3.85 billion, more than double the $1.28 billion from the same quarter last year. The company increased its revenue guidance for the year 2024 from $14.7 billion to $15.1 billion, beating analysts’ expectations of $14.60 billion.
Super Micro Computers has been experiencing significant growth due to the high demand for data center servers used to train and operate artificial intelligence models.
