Summary: S&P Dow Jones Indices said on Friday that Marvell Technology will be added to the S&P 500 later this month after the chipmaker satisfied a profitability test. The announcement sent Marvell shares higher in extended trading and sets up index-tracking funds to buy the stock when the change takes effect before the opening on June 22.
S&P Dow Jones Indices confirmed that Marvell will take the slot currently held by PoolCorp, the swimming pool equipment distributor, and that the change will be implemented before trading begins on June 22. The company cleared the inclusion hurdle by reporting a GAAP profit in its December quarter and achieving a positive sum of GAAP profits over its most recent four quarters - a metric it had not met previously and that had made it ineligible for the benchmark.
In after-hours trading following the announcement, Marvell's shares rose about 6%. The stock has already seen significant gains this year, having more than tripled year-to-date amid a broader rally in chip stocks tied to expectations of strong demand related to artificial intelligence workloads. This week alone Marvell shares climbed roughly 29%, aided in part by comments from Nvidia CEO Jensen Huang that referred to the company as the "next trillion dollar company".
Marvell and a larger peer, Broadcom, both design custom chips targeted at cloud-computing companies' data center requirements. That segment of their businesses has expanded quickly as major cloud providers seek alternatives to Nvidia's expensive and constrained AI processors. In its latest quarterly report, Marvell projected that its custom chip business would exceed $10 billion in revenue in fiscal 2029.
The planned addition of Marvell to the S&P 500 illustrates how the AI-driven surge in demand for chip and data-center infrastructure is reshaping the composition of major U.S. equity benchmarks. Chipmakers and related infrastructure companies are occupying larger weights in benchmarks as investors place bets on sustained demand from cloud providers and AI workloads.
Index reconstitutions have a practical market impact because passive funds and ETFs that track the S&P 500 must align their holdings with the benchmark's constituents and weights. Marvell's entry therefore would prompt purchases from those passive managers to match the index weightings.
Market snapshot data included with the announcement showed US500 -2.64%, SPY -2.6% and MRVL -16.74% in the displayed feed. Additional market display details included a closing level of 7,383.84, down 200.47 points or -2.64%, with the displayed ticker timeline showing standard intraday and multi-duration navigation indicators.
How this affects markets: The addition will generate index-driven flows into Marvell shares and underscores the growing influence of AI-related demand on index composition, particularly for chipmakers and data-center infrastructure suppliers.