Marvell Technology Inc (NASDAQ:MRVL) regained ground after a volatile stretch when S&P Dow Jones Indices said the semiconductor company will be added to the S&P 500 as part of its quarterly rebalancing. In after-hours trading on Friday the stock climbed 6% following a steep two-day decline in postmarket activity earlier that session.
The addition arrives after a week of outsized moves for Marvell. On Tuesday, Nvidia CEO Jensen Huang described Marvell as the next "trillion-dollar company," a comment that helped propel investor enthusiasm. That optimism was reinforced when Stifel increased its price target on the shares to $321.00 from $230.00. Analyst Tore Svanberg cited CEO Matt Murphy’s Computex keynote and management’s messaging on last week’s F1Q27 call as validating the firm’s data-infrastructure thesis and the company’s financial path.
Sentiment in the semiconductor group, however, cooled later in the week. Broadcom’s earnings report on Thursday failed to meet investor expectations and encouraged profit-taking across chip names. Marvell suffered a notable intraday decline, falling 16.7% during regular Friday trading hours, though that retreat did not eliminate 28.5% of the stock’s gains for the week.
Market participants now view the S&P 500 addition as a potential catalyst to sustain recent momentum. Historically, inclusion in the S&P 500 generally requires index-tracking funds to purchase the constituent’s shares and can draw broader institutional interest.
Manufacturing-solutions provider Flex Ltd (NASDAQ:FLEX) was named alongside Marvell as a new entrant to the benchmark. Flex shares rose about 4% in aftermarket trading after the announcement. The two incoming companies will replace Pool Corporation (NASDAQ:POOL) and Campbell’s Co (NASDAQ:CPB) prior to the open of trading on Monday, June 22.
Following the index changes, Pool’s stock fell 1.2% late in trading while Campbell’s shares were largely unchanged. Both companies that are exiting the S&P 500 will move to the S&P SmallCap 600 so that each benchmark better reflects the market-cap ranges of its members.
The rebalance affects more than the large-cap benchmark. Names slated to join the S&P MidCap 400 include Roku Inc (NASDAQ:ROKU), Coeur Mining Inc (NYSE:CDE), and Semtech Corporation (NASDAQ:SMTC). At the same time, additions to the S&P SmallCap 600 will include Warby Parker Inc (NYSE:WRBY) and Liquidia Technologies Inc (NASDAQ:LQDA), while other underperforming constituents such as Gogo and Vital Farms will be removed.
Market reaction snapshot
- Marvell (MRVL) rose 6% in after-hours trade following the S&P 500 inclusion announcement.
- Marvell declined 16.7% during regular Friday hours amid sector-wide profit-taking but maintained 28.5% of weekly gains overall.
- Flex (FLEX) gained roughly 4% in after-hours trading on the news of its S&P 500 addition.
- Pool (POOL) fell about 1.2% late; Campbell’s (CPB) was relatively unchanged.
The index adjustments will take effect before markets open on Monday, June 22, and are part of S&P Dow Jones Indices’ routine quarterly reconstitution.