Marvell Technology to join S&P 500 after clearing profit hurdle
Marvell’s jump into the S&P 500 shows how AI infrastructure is redrawing the index. Passive funds now have to buy a stock that has more than tripled this year.
Marvell Technology cleared the final hurdle for entry into the S&P 500, winning a spot in the benchmark just as investor money keeps flooding into AI infrastructure. S&P Dow Jones Indices said Marvell and Flex will join the index before the open on Monday, June 22, while Pool Corp. and Campbell’s Company will be removed. The announcement sent Marvell shares up nearly 6% in extended trading after a year in which the stock has more than tripled, lifting its market value to about $276.8 billion.
The change matters far beyond one chipmaker’s balance sheet. The S&P 500 is the core holding for retirement accounts and index funds because it covers about 80% of available U.S. market capitalization. When Marvell enters, passive funds tied to the benchmark will need to buy the stock, creating a built-in source of demand that can give the share price another technical lift. The rebalance also shows how the index is being reshaped by the AI boom, with data-center infrastructure, chip designers and other supply-chain names taking a larger role while older constituents fall out. S&P said the changes are designed to keep each index representative of its market-capitalization range.
Marvell’s addition also reflects a stricter profit test that has become central to index membership. The company reported GAAP net income of $200.2 million in the fourth quarter of fiscal 2025, after a full-year fiscal 2025 GAAP net loss of $885.0 million. Its custom AI silicon programs had entered volume production, a milestone that investors have treated as evidence that the Santa Clara, California, company is becoming a more direct beneficiary of cloud spending. Marvell’s investor relations page showed a June 5 closing price of $263.47, within a 52-week range of $61.44 to $324.20.
The key question now is whether Marvell’s surge is rooted in durable earnings power or in momentum tied to the AI trade. The company has argued for the former, saying in July 2025 that data infrastructure spending is slated to surpass $1 trillion by 2028 and that its data-center semiconductor market could reach $94 billion by then, including $55.4 billion tied to custom devices for accelerated compute. Marvell also said it had 18 active custom projects. Nvidia chief executive Jensen Huang has called Marvell the “next trillion dollar company,” a line that has only intensified the market’s enthusiasm. For index investors, the bet is less about one quarter than about whether AI spending keeps turning into profits.
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