Super Micro Computer stock outperforms S&P 500

What happened: Super Micro Computer (SMCI) stock surged on Friday, up 9.5% as of 1:40 p.m. ET, reaching an intraday high of 12.3%. This performance outpaces the S&P 500's gain of around 1.5% on the same day. The stock's rally follows a strong quarterly report, with revenue more than doubling year over year and gross margin rebounding from a steep drop.

Market impact: The data center sector is affected, with SMCI's valuation multiple currently below the S&P 500's. SMCI's outperformance could attract investors seeking undervalued tech stocks, potentially driving further gains in the sector. However, risks remain, including a heavier debt load and an open export-control investigation.

What to watch next: SMCI's next earnings release, scheduled for late August, will provide insight into the company's ongoing momentum. Additionally, any updates on the export-control investigation could significantly impact the stock's trajectory.