Marvell Technology Inc (NASDAQ:MRVL) bounced back sharply after a two-day dip during the post-market session on Friday, following the announcement of its upcoming inclusion in the S&P 500 benchmark index. The semiconductor maker's shares surged by 6% during after-hours trading when S&P Dow Jones Indices unveiled the changes as part of the quarterly rebalancing.
Inclusion in the index marked the end of an incredibly volatile week for Marvell. Early in the week, on Tuesday, the stock shot up sharply after Nvidia CEO Jensen Huang dubbed the company the next 'trillion-dollar company.' Market enthusiasm intensified when Stifel raised the stock's price target to $321.00 (from $230.00): analyst Tore Svanberg described CEO Matt Murphy's presentation at Computex as a 'major affirmation of the data infrastructure thesis we've been supporting for some time, and it seamlessly fit into the financial trajectory outlined by management during last week's Q1 2027 earnings call.'
However, by Thursday, sentiment in the semiconductor sector soured after competitor Broadcom released disappointing financial results, leading to a profit-taking sell-off that dragged Marvell's shares down 16.7% during Friday's main trading session, although this drop didn't overshadow the overall weekly gain of 28.5%.
Wall Street views inclusion in the world's most significant stock index as a catalyst for continuing the recent bullish trend in the company's shares. Historically, entering the S&P 500 provides substantial support to companies, as it compels index funds to buy their shares and attracts broader institutional backing.
Manufacturing company Flex Ltd (NASDAQ:FLEX) will also be included in the benchmark index—its shares rose 4% in after-hours trading on this news. Both tech companies will officially replace Pool Corporation (NASDAQ:POOL) and Campbell’s Co (NASDAQ:CPB) before trading opens on Monday, June 22.
Following the announcement, Pool shares fell 1.2% in late trading, while Campbell’s stock remained virtually unchanged. Both departing companies will move to the S&P SmallCap 600 index to ensure benchmarks continue to reflect the appropriate market capitalization ranges.
The massive rebalancing will also affect the S&P MidCap 400 index, which will include companies like Roku Inc (NASDAQ:ROKU), Coeur Mining Inc (New York:CDE), and Semtech Corporation (NASDAQ:SMTC). At the same time, Warby Parker Inc (New York:WRBY) and Liquidia Technologies Inc (NASDAQ:LQDA) will be added to the S&P SmallCap 600, while laggards Gogo and Vital Farms will be dropped.
In our group, we usually have those (subscribers!) who, in search of fresh and relevant news, do not want to sift through dozens of different websites and news outlets, but can afford to read all the most interesting content in one news feed!!! 😉
Enjoy your viewing!!! 😊
Meanwhile, we'll keep searching for fresh and interesting news. 🤫