Marvell to join S&P 500 after massive AI-fueled rally

Marvell Technology is officially joining the benchmark S&P 500 index later this month, capping off an extraordinary rally fueled by the artificial intelligence boom. S&P Dow Jones Indices announced that the chipmaker will replace swimming pool equipment distributor PoolCorp before trading opens on June 22. Following the announcement, Marvell shares surged nearly 6% in extended trading.

The prestigious index inclusion comes after Marvell successfully cleared a crucial hurdle: reporting a GAAP profit both in its December quarter and over the cumulative sum of its last four quarters, News.Az reports, citing Reuters.

Driven by intense investor enthusiasm for AI infrastructure, Marvell’s stock price has more than tripled this year. The stock skyrocketed roughly 29% in a single week, largely catalyzed by Nvidia CEO Jensen Huang, who publicly called Marvell the "next trillion-dollar company." As of Friday's market close, Marvell's market capitalization stood at $276.81 billion.

Marvell, alongside its larger rival Broadcom, specializes in designing custom silicon tailored to the specific data-center needs of cloud-computing giants. This niche has exploded as Big Tech firms actively look for alternatives to Nvidia's expensive and supply-constrained AI processors. In its latest earnings report, Marvell projected that its custom chip division alone would surpass $10 billion in revenue by fiscal 2029.

Marvell's entry into the S&P 500 highlights how heavily the AI gold rush is reshaping major U.S. stock benchmarks, with semiconductor and data-center infrastructure firms commanding massive weight. The transition will trigger a wave of mandatory buying from passive index funds and ETFs that track the S&P 500.

In the same index rebalancing, contract electronics manufacturer Flex will also be added to the S&P 500, replacing packaged food giant Campbell's.

News.Az 

By Aysel Mammadzada