Marvell, Flex Join S&P 500 on June 22 as AI Boom Reshapes Index

S&P Dow Jones Indices announced Friday that Marvell Technology and Flex Ltd. will join the S&P 500 on June 22, 2026. Marvell, a chipmaker for AI data centers, will replace Pool Corp. Flex, an electronics contract manufacturer, will replace Campbell’s Company. The additions highlight how AI infrastructure demand is reshaping the benchmark index away from traditional consumer staples toward technology and semiconductors.

Why Marvell Cleared the Profitability Hurdle

Marvell passed S&P’s strict profitability requirements after reporting GAAP profit in its December quarter and over the past four quarters combined. The chipmaker’s shares have tripled year-to-date, reaching a market cap of $276.81 billion by Friday’s close. Marvell designs custom chips for cloud computing data centers, a business forecast to exceed $10 billion in revenue by fiscal 2029.

Nvidia CEO’s Endorsement Fuels Stock Rally

Nvidia CEO Jensen Huang called Marvell the “next trillion-dollar company” at Computex this week, sending shares up 29% in a single session. Nvidia also invested $2 billion into Marvell. The chipmaker’s stock rose 6% in after-hours trading after the S&P 500 inclusion announcement, capping a historic rally driven by AI infrastructure demand.

Flex Spins Off Cloud Segment Ahead of Inclusion

Flex, a Singapore-based electronics manufacturer serving Apple and Nvidia, will also join the index on June 22. The company issued 2027 profit guidance that exceeded consensus estimates and announced a spinoff of its cloud and power infrastructure segment. Flex shares rose 4% in after-hours trading and 2% after the formal announcement.

Index Inclusion Triggers Automatic Buying from Passive Funds

S&P 500 inclusion will force index funds and ETFs to buy Marvell and Flex shares to match the benchmark’s new composition. Passive managers must hold constituents in line with their index weights. The move reflects how AI boom is commanding increasingly large weights in major U.S. equity benchmarks as investors bet on sustained demand from cloud providers and AI workloads. Broader market indices have maintained solid leads over the S&P 500 year-to-date.

Final Thoughts

Marvell’s S&P 500 inclusion caps a historic rally driven by AI infrastructure demand and Nvidia’s backing. With Meyka rating Marvell a B+ and analysts showing strong consensus, the index addition signals sustained confidence in AI-related semiconductor demand.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.