Marvell Technology, Flex to join S&P 500 later this month

Marvell Technology Inc. and Flex Ltd. will join the S&P 500 later this month, replacing Pool Corp. and The Campbell’s Company in the index’s latest quarterly rebalance, S&P Dow Jones Indices announced Friday. The semiconductor and electronics manufacturing firms are being added as they benefit from surging demand for AI data center chips and strong profit guidance, respectively. The changes take effect before trading opens on June 22.

Marvell Technology https://fortune.com/company/marvell-technology/ Inc. and Flex Ltd. will join the S&P 500 in the latest quarterly rebalance https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20260605-1483743/1483743 shuffle546-june2026.pdf , S&P Dow https://fortune.com/company/dow/ Jones Indices said Friday. The semiconductor company and the electronics manufacturing firm, respectively, will replace Pool https://fortune.com/company/pool/ Corp. and The Campbell’s Company before the start of trading on June 22, according to the index provider. Marvell in its latest earnings delivered a quarterly forecast that exceeded estimates https://www.bloomberg.com/news/articles/2026-05-27/marvell-gains-after-ai-fueled-data-center-demand-boosts-forecast and boosted its outlook for the year, citing demand for chips used in AI data centers. The company is benefiting from a surge in demand for computer systems in data centers that create and run artificial intelligence software and services. Flex, meanwhile, issued profit guidance for 2027 that exceeded consensus estimates. The company announced it will spin off its cloud and power infrastructure segment. Shares in Marvell rose 6% in after-hours trade and Flex was up 2%. Companies must have a market capitalization of at least $22.7 billion and meet profitability, liquidity and share-float requirements to qualify for the S&P 500 under April guidelines https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-us-indices.pdf . Removal from the benchmark can weigh on a stock, as index funds sell shares to realign with the gauge’s new composition. The growth of passive investing has elevated the importance of inclusion in the US equity benchmark, as funds that track the index must buy newly added shares. The same goes with exclusion. Just on Thursday, the index provider announced it will keep https://www.bloomberg.com/news/articles/2026-06-04/s-p-dow-jones-keeps-megacap-ipo-rules-as-is-after-consultation its existing eligibility requirements for benchmarks, closing the door to fast entry for big tech IPOs like SpaceX https://fortune.com/company/spacex/ . The decision arrives as Wall Street grapples with a new reality: some companies are reaching unprecedented sizes before they ever enter public markets. Read more: S&P’s SpaceX Snub Shows Elon Musk the Power of Index Gatekeepers https://www.bloomberg.com/news/articles/2026-06-05/s-p-s-spacex-snub-shows-elon-musk-the-power-of-index-gatekeepers SPDJI said it will not shorten the 12-month seasoning period for giant newly public companies or waive existing profitability and public-float requirements based on a company’s size, diverging from a broader industry shift embraced by rivals Nasdaq https://fortune.com/company/nasdaq/ Inc. and FTSE Russell. This means Elon Musk’s rocket company, among others, will not get immediate access to one of the largest and most reliable sources of demand in modern markets: the trillions of dollars benchmarked to the most widely followed stock index. Quicker inclusion in the benchmark would have led to about $14 billion in forced passive buying for SpaceX, more than $8 billion for OpenAI and about $4.6 billion for Anthropic PBC, according to Bloomberg Intelligence estimates. Read more: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P https://www.bloomberg.com/news/articles/2026-06-04/s-p-dow-jones-keeps-megacap-ipo-rules-as-is-after-consultation In March, Vertiv Holdings https://fortune.com/company/vertiv-holdings/ Co., Lumentum Holdings Inc., Coherent https://fortune.com/company/ii-vi/ Corp. and EchoStar https://fortune.com/company/echostar/ Corp. were added to the index, replacing Match Group https://fortune.com/company/match-group/ Inc., Molina Healthcare https://fortune.com/company/molina-healthcare/ Inc., Lamb Weston Holdings https://fortune.com/company/lamb-weston-holdings/ Inc. and Paycom Software https://fortune.com/company/paycom-software/ Inc. The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit.