Marvell Technology is joining the benchmark S&P 500 index, S&P Dow Jones Indices announced Friday, sending shares up 6 percent in extended trading.
The chipmaker cleared a key profitability hurdle following a blistering AI-fueled rally. Marvell will replace PoolCorp on the index before trading opens June 22.
Its entry follows a GAAP profit in the December quarter and over the most recent four quarters-a criterion it previously failed to meet.
Marvell shares have more than tripled this year, boosted by a broader rally in chip stocks on AI demand. This week alone, shares gained roughly 29 percent, partly due to Nvidia CEO Jensen Huang calling Marvell the "next trillion dollar company."
Marvell and rival Broadcom design custom chips for cloud-computing data centers. In its latest quarterly earnings, Marvell forecast its custom chip business would surpass $10 billion in revenue by fiscal 2029.
The inclusion reflects how the AI boom is reshaping major U.S. equity benchmarks, with chip and data-center infrastructure companies gaining weight as investors bet on sustained demand from cloud providers.