NVDA
NVIDIA
-- 134.250 PLTR
Palantir
-- 76.070 TSLA
Tesla
-- 436.230 AVGO
Broadcom
-- 224.800 SMCI
Super Micro Computer
-- 36.450 
Super Micro Computer (SMCI) Removed from Nasdaq-100: What Could Happen Next?
Super Micro Computer (SMCI) is set to be removed from the Nasdaq-100 Index effective December 23, 2024, as part of the annual reconstitution. While this news might initially sound negative, history tells a different story when it comes to stock performance post-removal.
What Happens to Stocks Removed from the Nasdaq-100?
Historical data shows that stocks removed from the Nasdaq-100 tend to perform surprisingly well:
3-Month Performance: On average, removed stocks see an 8% increase in the three months following reconstitution, compared to a 6% gain for stocks added to the index.
Outperformance: 52% of removed stocks outperform the Nasdaq-100 Index over this period, compared to 48% of added stocks.
3-Month Performance: On average, removed stocks see an 8% increase in the three months following reconstitution, compared to a 6% gain for stocks added to the index.
Outperformance: 52% of removed stocks outperform the Nasdaq-100 Index over this period, compared to 48% of added stocks.
Short-Term Impact
In the short term, stock performance can be more volatile and driven by market sentiment or company-specific developments. For instance:
In December 2023, Lucid Group and eBay were removed from the Nasdaq-100. Despite the removal, Lucid’s stock surged by up to 7% following the announcement, showing that market reactions can be positive even after exclusion from the index.
In December 2023, Lucid Group and eBay were removed from the Nasdaq-100. Despite the removal, Lucid’s stock surged by up to 7% following the announcement, showing that market reactions can be positive even after exclusion from the index.
SMCI's Current Status
As of December 14, 2024, SMCI is trading at $36.45, down 3.88% from its previous close. While concerns over financial reporting delays and potential delisting from Nasdaq have impacted its stock recently, SMCI has taken steps to address compliance issues and received a filing extension until February 25, 2025. The company remains a leader in server technology and AI infrastructure, and with a P/E ratio of ~20 and P/B ratio of ~4, it still appears undervalued based on its fundamentals.
What’s Next for SMCI?
Given historical trends, SMCI’s stock could present a recovery opportunity in the coming months. However, short-term volatility should not be overlooked. Factors such as the company’s ability to meet its filing deadlines, ongoing Nasdaq listing status, and market sentiment will play key roles.
Key Takeaways:
Stocks removed from the Nasdaq-100 often perform well in the following months, averaging an 8% gain.
Short-term performance can vary, but positive reactions are possible, as seen with companies like Lucid Group.
SMCI’s long-term potential and undervaluation make it worth monitoring for a possible rebound.
What’s your take on SMCI’s future? Are we looking at a potential bounce back, or will the removal weigh heavily on the stock? Let’s discuss!
Short-term performance can vary, but positive reactions are possible, as seen with companies like Lucid Group.
SMCI’s long-term potential and undervaluation make it worth monitoring for a possible rebound.
What’s your take on SMCI’s future? Are we looking at a potential bounce back, or will the removal weigh heavily on the stock? Let’s discuss!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Golden Cross Duck : See where lucid now? Lol mind blowing when people write this post… lol
103473187 : Bitcoin proxy MicroStrategy to join the Nasdaq 100 and heavily traded 'QQQ' ETF
ST23 : errrrrrr which SMCI holder wrote this ? LOL. if it never dropped out of nasdaq 100, then it would be "wow, to the moon!"
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
now that it has, the story is "no worries, dropped out but to the moon!"
Benson8888 : If didn’t drop .. how to add more .. this is my view .. anyway is for long term 2025
一击即中 : Whether you're buying it or selling it, it's like flipping a coin to choose a side and waiting for the result! Guess right and get Gold, guess wrong and it's rubbish! Why listen to Analysts' explanations? It's all just bull shit based on blind guessing.. If you're good, Analysts should enter the market themselves, place bets, and show the results to everyone! There are plenty of Monday morning quarterbacks...![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")