Key facts
- Marvell Technology will be added to the S&P 500 index, replacing Pool Corp.
- The changes will take effect before markets open on June 22.
- Marvell shares climbed more than 9% on Monday following the announcement.
- The company's stock has gained approximately 59% since May 27.
- Marvell reported a GAAP profit in the three months through December and over its most recent four quarters.
Marvell Technology shares climbed more than 9% on Monday after S&P Dow Jones Indices announced the chipmaker will be added to the benchmark S&P 500 index, replacing Pool Corp. The changes are effective before the market opens on June 22.
The inclusion follows a substantial stock surge, with Marvell's shares gaining approximately 59% since May 27. This rally was fueled by a forecast that its custom-chip business would exceed $10 billion in revenue by fiscal 2029 and praise from Nvidia CEO Jensen Huang, who referred to Marvell as the next 'trillion-dollar company.'
Despite a broad chip sector selloff on Friday that erased $1.3 trillion in market value, Marvell's stock has benefited from strong investor conviction in AI-driven growth. The company's addition to the S&P 500 was also enabled by its recent reporting of GAAP profits over the past four quarters, a key requirement for index inclusion.
Marvell, alongside rival Broadcom, designs specialized chips for data centers, a market experiencing significant growth as technology firms seek alternatives to Nvidia's high-demand AI processors. The move underscores the increasing weight of chipmakers and data-center infrastructure firms in major U.S. stock indexes.