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COULD IT BE MARVELL'S TIME TO JOIN THE S&P 500?

Many eyes will be on chipmaker Marvell Technology MRVL.O at the end of this week as it is the most valuable company eligible to be included in the benchmark S&P 500 .SPX in the upcoming quarterly rebalancing.

Stephens analyst Melissa Roberts said that recent S&P 500 additions have favored the companies with the largest market capitalizations, but only named the chipmaker as her second pick within the information technology sector.

"The S&P index family doesn't actively reconstitute, so the discretionary changes that they can make at the rebalance gives them an opportunity to do an index cleanup and move some of the clearly outsized names into a larger cap index and some of the undersized names into a smaller cap index," she said.

Her top pick from tech is electronics maker Flex FLEX.O - which would be a migration from the S&P 400 Mid Cap index .IDX. Marvell, second on her list, is currently not a part of any S&P index.

The chipmaker was not eligible for inclusion until late 2025 as it did not qualify under S&P's profitability criteria, which state that the company must be profitable on a GAAP basis for at least four recent quarters. That hurdle was cleared in December 2025, but it has been looked past for inclusion since then.

Outside the technology sector, her picks feature companies from the industrials space. These include power solutions firm Bloom Energy BE.N, plumbing and air conditioning equipment supplier Ferguson Enterprises FERG.N and infrastructure firm MasTec MTZ.N. MasTec would count as a migration from the mid cap index.

And for communication services, her pick is social media platform Reddit RDDT.N.

Based on just market value, Marvell trumps the others with a market capitalization of just over $247 billion or around triple the size of the next largest company, Bloom Energy at over $81 billion.

However, Marvell's move is not a guarantee as "even though you clear all the eligibility requirements, we still have an index committee ... there's no obligation to add a company because of its size and eligibility. It's really up to the committee and what they feel is the right decision for the index at that time," Roberts said.

Marvell shares have soared nearly 270% so far this year, bolstered by a broader rally in chip stocks on hopes for runaway AI-related demand. This week alone it is tracking for a roughly 51% jump. This is partly thanks to a rally on Tuesday when Nvidia NVDA.O CEO Jensen Huang caused a bit of a stir by calling it the "next trillion dollar company".

S&P Dow Jones Indices will announce the results for its rebalancing after markets close on Friday, June 5.

(Shashwat Chauhan)

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