Marvell Technology will join the S&P 500 on June 22, replacing PoolCorp, after posting GAAP profits in each of the past four quarters. Shares jumped 7.03% in premarket trading, lifting its market capitalization to about $277 billion and triggering anticipated passive inflows.
Marvell Technology will be officially added to the S&P 500 on June 22, replacing PoolCorp. This change follows its clearance of the index’s profitability hurdle and is scheduled to take effect before markets open.
Shares of Marvell surged 7.03% in premarket trading on the announcement, reflecting strong investor demand. The move lifted Marvell’s valuation to approximately $277 billion, extending its year-to-date gains that have more than tripled the stock price.
The chipmaker achieved GAAP profits in the quarter ending December and maintained profitability across its last four consecutive quarters. Clearing this key requirement enabled the S&P Dow Jones Indices to approve its entry into the benchmark.
Inclusion will force passive index funds and ETFs to buy newly added shares, likely providing a sustained uplift. Marvell forecasts its custom chip segment will exceed $10 billion in annual revenue by fiscal 2029 while competing with Broadcom and Nvidia in AI data-center chips.
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