Marvell Technology, a custom chip design company, will be added to the Standard & Poor's 500, a major U.S. stock index, later this month.
According to S&P Global on Sunday, Marvell and Flex, an electronics contract manufacturer, will join the S&P 500 index starting on the 22nd. With tech stocks surging amid the artificial intelligence (AI) boom, they will push out Pool, a swimming pool equipment company, and Campbell, a canned soup maker.
The move is a positive development, as passive funds (which invest in proportion to market capitalization) tied to the S&P 500 must buy Marvell shares in line with its market cap weighting. Considering the current tracking funds, up to 35 billion dollars (about 48 trillion won) could flow into Marvell.
Marvell, which designs custom AI chips for data centers, has seen its stock triple this year. The company is benefiting from a surge in data center demand driven by competition in AI development, and its custom chip revenue is projected to surpass 10 billion dollars in fiscal year 2029. Flex, which supplies products to big tech firms including Nvidia and Apple, has also seen its stock jump 2.4-fold this year.
In particular, Marvell's stock surged 30% in a single day after Nvidia CEO Jensen Huang praised the company as "a company worth one trillion dollars" at "Computex 2026" in Taiwan on the 2nd. Marvell's current market cap is about 230 billion dollars. Nvidia invested 2 billion dollars in Marvell in March this year. Huang stressed that Marvell's networking chips are essential for quickly sharing data across data centers connected by thousands of chips.
