NEW YORK, June 5, 2026, 19:05 (EDT)
- Flex is set to join the S&P 500 before the bell on June 22, with the move happening as part of the quarterly index rebalance.
- Shares last traded at $151.92, off 4.8% from where they ended Thursday.
- Flex’s AI data-center power unit and the coming spin-off are in the spotlight after the move.
Flex Ltd. is set to join the S&P 500 later this month. The electronics maker picked up an index boost, but shares still dropped Friday during a wider tech selloff.
Flex and Marvell Technology are headed to the S&P 500, S&P Dow Jones Indices said. The two companies will take the place of Pool Corp and Campbell Soup before the open on June 22. The S&P 500 is the main big-cap equity index in the U.S., and getting added can boost demand for a stock as index funds often have to buy the new names.
Flex shares fell 4.8% to $151.92, with the stock moving between $149.39 and $160.79 through the day. It tracked losses across growth and chip-related stocks as the Nasdaq Composite dropped 4.18%. The S&P 500 technology sector shed 5.8%.
The declines extended beyond Flex. Jabil was down 5.5%. Sanmina dropped 10.0%, and Celestica lost 12.6%. Electronics manufacturers and data-center supply chain stocks saw broad selling.
“After the record run we’ve seen the last nine weeks in equities, specifically tech and semiconductors, the dam just broke today,” said Ryan Detrick, chief market strategist at Carson Group, speaking to Reuters. Wells Fargo chief equity strategist Ohsung Kwon told Reuters the move was “more driven by positioning rather than fundamentals.” Reuters
Flex is getting index news just after a fast re-rating. The company, once thought of as mostly a contract manufacturer, now draws investor attention for its Cloud and Power Infrastructure unit, or CPI. Investors looking for AI data center exposure are watching CPI, as those centers need more power, cooling, and integration.
Flex reported in its annual filing that CPI sales jumped 38% in fiscal 2026, hitting $6.61 billion, which made up 24% of total sales as data-center demand pushed growth. Overall revenue at the company was up 8% to $27.91 billion.
Flex said it wants to spin off its power-and-cloud unit as a separate publicly traded company by early 2027. The move is planned as a tax-free spin-off for shareholders if it gets the required approvals and market conditions hold. Reuters reported in May that CEO Revathi Advaithi is lined up to run the new power-and-cloud company, and Michael Hartung is set to lead what remains of Flex.
Flex execs continue to push the AI story. Chris Butler, who heads embedded and critical power at Flex, said this week, “the rapid growth of AI is driving new demands on data center power infrastructure,” as Flex rolled out new power products for next-gen AI server racks. Flex Investor Relations
Flex CEO Revathi Advaithi last month said the company ended fiscal 2026 with “disciplined execution and a clear strategy,” citing acquisitions and capital spending focused on long-term growth. Flex posted adjusted earnings of $3.30 a share for the year and an adjusted operating margin of 6.3%. PR Newswire
Barclays’ Tim Long lifted his price target on Flex to $203 from $174 on June 4, keeping a Buy rating, StockAnalysis says.
Index inclusion doesn’t touch the core risks. Flex reported its CPI margin dropped 100 basis points for fiscal 2026, citing ramp-up costs and a tougher product mix in cloud and cooling. A basis point equals one-hundredth of a percentage point. If the AI spending cycle slows, spin-off terms weaken, or tech pulls back again, the S&P 500 story may not matter as much.
June 22 is the next fixed date. Until then, investors are watching to see if forced index demand can balance out a market that is showing less patience with the biggest AI-linked winners of the year.
