New York, June 7, 2026, 10:05 (EDT)
Marvell Technology is joining the S&P 500, but heads into the U.S. market’s long weekend with shares lower. The week saw AI talk boost stocks early on, then a sharp chip-stock drop.
Marvell and Flex are set to enter the S&P 500 before the open on June 22, S&P Dow Jones Indices said late Friday. Marvell is in, replacing Pool Corp. Flex will replace The Campbell’s Company. The changes come with the quarterly rebalance.
Index changes often drive forced buying. S&P 500 trackers—these passive funds that mirror indexes—usually have to buy added stocks and dump the ones dropped when the change takes effect. Marvell shares dropped almost 17% Friday, but they’re still up over 300% for the year, according to Investopedia.
Nasdaq is closed Sunday. Marvell last traded at $263.47, off $52.81 from its previous close. Shares hit a low of $255.76 on the day, with volume near 94 million shares.
Nvidia CEO Jensen Huang set things off this week at Computex in Taipei, where he joined Marvell CEO Matt Murphy and called Marvell the “next trillion-dollar company,” according to Reuters. Marvell shares jumped more than 25% on Tuesday, hitting a record, but Reuters pointed out the company is still nowhere near a $1 trillion valuation. Reuters
Earnings gave a boost. Marvell said May 27 its first-quarter fiscal 2027 revenue jumped 28% to a record $2.418 billion. Adjusted, or non-GAAP, diluted earnings came in at 80 cents a share. Non-GAAP numbers exclude some costs and aren’t calculated under standard U.S. accounting. Murphy said Marvell had “exceptional AI-related bookings” and set second-quarter revenue guidance at $2.7 billion, midpoint. Marvell Technology, Inc.
Marvell’s custom-chip unit has drawn strong investor interest as it goes up against Broadcom in making chips tailored for individual cloud customers’ data centers. Reuters reported that both Marvell and Broadcom design chips for cloud firms that want options beyond Nvidia’s pricey, sometimes hard-to-get AI processors. Marvell thinks the custom-chip business can hit more than $10 billion in revenue in fiscal 2029, according to Reuters.
Nvidia backing has pushed the story into focus. In March, the company said it would invest $2 billion in Marvell, and the two firms announced a partnership on NVLink Fusion, letting custom AI chips connect to Nvidia systems. “Token generation demand is surging,” Nvidia’s Huang said. Marvell CEO Murphy said the deal would help clients build “scalable, efficient AI infrastructure.” Marvell Technology, Inc.
Marvell put out a new product update last week. On June 1, the company said its Teralynx T100 switch chip, meant for traffic inside big AI clusters, will start sampling this quarter and can push 102.4 terabits per second. That’s a data flow figure. Alan Weckel, co-founder and tech analyst at 650 Group, said data-center infrastructure is now a “defining factor” in how networks perform. Marvell Technology, Inc.
PHLX Semiconductor Index sank 10.3% Friday, the steepest drop since March 2020, according to MarketWatch. Chip names sold off hard, with Marvell off 16.7%, Micron down 13.3%, Broadcom sliding 7.9%, and Nvidia losing 6.2%, as traders pulled back from a crowded trade this year.
Market pressure was clear Friday. The Associated Press reported a 2.6% drop for the S&P 500, while the Nasdaq Composite slid 4.2% after strong U.S. jobs data raised fears the Federal Reserve might hike interest rates. Higher rates usually weigh on technology stocks because they cut into the value investors assign to expected profits.
Quieter week for scheduled events. Marvell’s investor-relations calendar lists no events coming up. That puts attention on Monday’s open, updates from the chipmaker, and moves ahead of the June 22 index reshuffle.
The trade isn’t without risks. Marvell’s most recent 10-Q says the company leans on a handful of big customers, with sales getting more concentrated in data centers. Some of those buyers might shift to in-house chips or turn to competitors. The filing also lists bad demand forecasts and supply chain snags as threats to revenue and margins.
Marvell is riding out two trades: its benchmark-entry play that could bring in index cash, plus an AI-chip story that’s proving volatile. Monday’s session will show if buyers see Friday’s drop as a new baseline, or if it’s a sign the best stretch of the rally is behind.
