S&P Dow Jones Indices announced its latest quarterly index adjustments on Friday, revealing that AI infrastructure concept stock Marvell Technology (MRVL) and electronics manufacturing services giant Flex (FLEX) will be officially added to the S&P 500, replacing pool equipment manufacturer Pool Corp. (POOL) and Campbell Soup Company (CPB). The changes will take effect before the market opens on June 22. Following the announcement, Marvell Technology’s stock rose about 6% in after-hours trading, while Flex gained over 2%.
The inclusion is seen by the market as a significant milestone for both companies benefiting from the AI industry wave. Marvell Technology’s latest financial report showed that the company not only provided quarterly earnings guidance above market expectations but also raised its full-year outlook. Management stated that robust demand for high-speed network chips and custom compute chips from AI data centers is continuously driving business growth. Flex also recently delivered strong results, with its fiscal 2027 profit guidance exceeding Wall Street’s general expectations. The company also announced plans to spin off its cloud computing and power infrastructure business unit to further unlock shareholder value. As demand for AI servers, power equipment, and data center construction continues to grow, Flex is gradually transforming from a traditional electronics manufacturing services provider into a key participant in the AI infrastructure supply chain.
Analysts point out that being added to the S&P 500 is highly significant for listed companies. According to rules updated in April of this year, companies must meet a market capitalization threshold of at least $22.7 billion, along with requirements for profitability, liquidity, and public float. Since a large number of passive funds and ETF products track the index, newly added companies typically attract passive capital inflows from index funds, while those removed may face selling pressure.
Just this Thursday, S&P Dow Jones Indices announced that it would maintain existing index inclusion criteria and would not open a “fast track” for large tech IPOs. Newly listed companies must still meet a 12-month observation period requirement and profitability standards. This means that soon-to-be-public super unicorns such as SpaceX, OpenAI, and Anthropic will not be able to enter the S&P 500 in the near term. Industry research estimates that if fast-track inclusion were allowed, SpaceX could attract approximately $14 billion in passive fund buying, with OpenAI and Anthropic seeing around $8 billion and $4.6 billion, respectively. Analysts believe that adhering to the existing rules reflects the index provider’s emphasis on the stability and investability of its constituent stocks.
