FX168 Financial News (North America) Dell and Palantir were announced on Friday, September 6th to be included in the s&p 500 index. After the announcement, the stock prices of both companies rose in after-hours trading, with Dell up 5.1% and Palantir up 7.81%.

(Source: Google)

(Source: Google)

Following Super Micro Computer and CrowdStrike earlier this year, two more technology companies have been included in this important market benchmark.

Palantir will replace American Airlines, while Dell will replace Etsy in the index. Companies included in the s&p 500 index usually experience stock price increases due to portfolio adjustments, with fund managers reallocating investments based on changes in the index.

Dell was previously a component of the s&p 500 index until the 2013 privatization transaction led by founder Michael Dell caused its exit from the index. In 2018, Dell went public again, and its return to the s&p 500 signifies a further consolidation of its market position.

Meanwhile, Dell is competing with Super Micro Computer in the AI server market. Super Micro Computer's market cap surpassed $50 billion earlier this year and was included in the S&P 500 index, but its market cap has since halved. Dell, on the other hand, has achieved significant growth with AI servers equipped with Nvidia's graphics processing units. As of August 2nd quarter, the demand for AI servers reached $3.2 billion, a 23% increase from the previous quarter.

Palantir was founded 15 years ago as a venture-backed startup. It went public on the New York Stock Exchange in 2020 and achieved its first profitable quarter in the fourth quarter of 2022. The net income for the second quarter of 2023 reached $0.1356 billion, far exceeding the $27.9 million in the same period last year. With continuous accelerated growth in annual revenue for four quarters, Palantir successfully entered the S&P 500 index.

Palantir's CEO, Alex Karp, is known for his work in supporting government and military institutions in data management. In a recent interview, he stated that Palantir is committed to "finding what is hidden" and is optimistic about the company's inclusion in the S&P 500 index.

S&P Global stated that the addition of these stocks better reflects the situation of high-cap stocks in the US. The market cap of Palantir and Dell exceeds $67 billion and $72 billion, respectively, far exceeding the median market cap of $33.5 billion in the index.