Key facts
- Marvell Technology will join the S&P 500 index, replacing PoolCorp.
- Flex Ltd. will also join the S&P 500 index, replacing Campbell's.
- The changes are effective before trading on June 22.
- Marvell's shares have more than tripled this year.
- Marvell recently reported GAAP profit over its last four quarters.
- Marvell forecasts its custom chip business will surpass $10 billion in revenue in fiscal 2029.
Marvell Technology is set to join the benchmark S&P 500 index, replacing PoolCorp before the market opens on June 22. The chipmaker's shares rose 6% in extended trading following the announcement. Marvell recently cleared a key profitability hurdle, reporting a GAAP profit over its most recent four quarters, a criterion it had previously failed to meet. The company's shares have more than tripled this year, bolstered by a broader rally in chip stocks on hopes for AI-related demand. Nvidia CEO Jensen Huang called Marvell the 'next trillion dollar company' this week. Marvell and rival Broadcom design custom chips for cloud-computing companies' data center needs, a business that has grown rapidly as Big Tech firms seek to reduce reliance on Nvidia's AI processors. Marvell forecasts its custom chip business will surpass $10 billion in revenue in fiscal 2029. The inclusion reflects the AI boom's impact on equity benchmarks, increasing the weight of chip and data-center infrastructure companies. Flex Ltd. will also join the S&P 500 in this quarterly rebalance, replacing Campbell's.