Shares of Marvell Technology resumed their winning run on Monday, 8 June, surging 15.7% to $305 and recovering all of the previous session’s losses after the chipmaker was set to join the benchmark S&P 500 index.
The semiconductor company, which trades on the Nasdaq, will join the broad-market index on 22 June and will sit alongside 500 leading US companies, S&P Global said in a press release on Friday.
The inclusion comes after Marvell reported a GAAP profit in the three months through December and across its most recent four quarters, overcoming a key hurdle that had previously kept it out of the index.
Joining the S&P 500 typically boosts a stock, as passive index funds tracking the benchmark are required to buy shares of newly added companies. Marvell’s inclusion also underscores how the AI boom is reshaping major US stock indices, with chipmakers and data-centre infrastructure firms gaining larger benchmark weightings amid strong investor optimism.
The announcement came at a time when the sustained rally in Marvell shares had briefly paused on Friday after investors slammed the brakes on the artificial intelligence rally following weaker-than-expected revenue guidance from Broadcom and a stronger-than-expected US jobs report for May, which reinforced expectations of a potential rate hike by the US Federal Reserve in 2026.
The shares had ended the previous session with a 28% jump after Nvidia CEO Jensen Huang predicted that the semiconductor and networking company could
Chipmakers have emerged as some of the biggest beneficiaries of aggressive spending by technology giants to scale up AI infrastructure globally. Since the AI boom was ignited by OpenAI’s ChatGPT launch in 2022, demand for semiconductor companies has grown exponentially, as advanced chips are critical for training and running AI models.
Marvell, which designs custom chips for cloud providers seeking to reduce dependence on Nvidia’s AI processors, has forecast that its custom chip business will surpass $10 billion in revenue by fiscal 2029.
In recent months, Marvell has also aggressively expanded through acquisitions, announcing the purchase of optical networking company Celestial AI for $3.25 billion and interconnect technology firm XConn for $540 million.
Marvell stock jumps over 250%
The shares, which remained largely stagnant for four straight months through February, regained momentum in March with a 21.25% surge, and the rally only strengthened in the following months.
The stock ended the last two months with a cumulative gain of 107%, and the momentum showed no signs of slowing as it surged another 47% so far in June.
The sustained one-way rally has helped the stock deliver returns of more than 252% in 2026 so far, marking its biggest annual surge since 2009, when it had jumped 210%. This year’s rally marks a sharp contrast to the 23% decline seen in 2025, indicating a strong shift in investor preference towards AI-linked chip stocks.
(With inputs from Reuters)
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