Marvell Technology has earned its ticket to the S&P 500, the most exclusive club in American equities. S&P Dow Jones Indices announced on June 5 that the semiconductor company will join the benchmark index effective June 22, before market open, replacing Pool Corp.
Shares of Marvell rose nearly 6% in after-hours trading following the announcement.
How Marvell cleared the bar
Getting into the S&P 500 isn’t just about being big. You have to be profitable. Specifically, a company needs positive GAAP earnings in its most recent quarter and positive cumulative earnings over its trailing four quarters. Marvell cleared both hurdles, reporting GAAP profit for Q4 (ended December) and across its trailing four-quarter stretch.
Marvell has been riding a wave of demand for semiconductors purpose-built for AI infrastructure and data centers. The company has been designing custom silicon and networking chips that serve as the connective tissue inside hyperscale data centers.
