The S&P Dow Jones Indices has announced that chipmaker Marvell Technology and electronics manufacturing services provider Flex Ltd will be added to the S&P 500 index, with the changes taking effect before the US market opens on Monday, June 22.
In a corresponding move, Campbell Soup Company and pool equipment wholesaler Pool Corp will be removed from the benchmark index.
Following the announcement, shares of both companies surged in after-hours trading. Marvell Technology shares rose approximately 6% to 7%, while Flex Ltd shares gained around 4%.
Market analysts believe inclusion in the S&P 500 signifies that the companies' stocks will gain broader coverage from a wider investor base, including passive funds that track the index and actively managed funds with restricted investment mandates. This is expected to have a tangible positive impact on the stocks' liquidity and valuations.
Marvell Technology specializes in high-speed networking connectivity chips and custom AI semiconductor designs, positioning it as a key beneficiary of artificial intelligence data center infrastructure development. The company's market capitalization has soared to approximately $230 billion, far exceeding the S&P 500's minimum market cap requirement of $22 billion. Previously, at the Taipei International Computer Exhibition, NVIDIA CEO Jensen Huang publicly suggested that Marvell Technology has the potential to become "the next trillion-dollar company."
Flex Ltd is the world's third-largest electronics manufacturing services provider, trailing only Foxconn and Pegatron. The company is deeply involved in the AI server market, providing critical manufacturing support for NVIDIA's high-performance AI server systems and data center modules, while also producing major hardware accessories for Apple Inc.
This index adjustment is set to further increase the weighting of the information technology sector within the S&P 500. Despite recent volatility in technology stocks due to macroeconomic concerns, both companies secured the index committee's favor based on their central roles in the AI infrastructure landscape.