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Investors are cheering Marvell Technology (MRVL) stock today following news that the custom AI chips specialist will join the benchmark S&P 500 Index ($SPX) on June 22.
The announcement follows a week in which MRVL already rallied sharply after Jensen Huang, the chief executive of Nvidia (NVDA), said it could be “the next trillion-dollar opportunity.”
Year-to-date, Marvell shares are up an incredible 230% at the time of writing.
Significance of Index Inclusion for Marvell Stock
As MRVL shares replace Pool Corporation on the benchmark index, it will experience a structural wave of buying — not based on the company’s near-term fundamentals.
Passive funds and institutional portfolio tracking the S&P 500 must now hold Marvell Technology, meaning billions of dollars in programmatic buying will likely be concentrated around June 22.
Note that the precedent from recent AI infrastructure peers is encouraging: Vertiv Holdings (VRT), which supplies power infrastructure to data centers, has gained roughly 30% since its March 2026 inclusion.
All in all, index membership serves as a validation of the company’s financial profile and typically attracts a deeper, more permanent base of long-term institutional investors.
Aren’t MRVL Shares Too Expensive to Own?
At nearly 34x sales, Marvell stock isn’t particularly inexpensive to own in 2026, but the company’s underlying business trajectory helps justify that premium multiple.
According to management’s latest update, revenue will more than double last year’s number to $16.5 billion by fiscal 2028.
The primary engine behind this explosive growth is MRVL’s custom silicon business. The Nasdaq-listed firm has secured custom accelerators and XPU design wins from major cloud providers.
And it sees unit shipments of custom artificial intelligence accelerators exceeding those of GPUs within the next two years.
Meanwhile, Marvell’s optical interconnect business — the chips and switches that move data inside AI data centers at 800G and 1.6T speeds — is also expected to grow by more than 50% this year.
Wall Street Remains Bullish on Marvell Technology
With AI infrastructure spending showing no signs of slowing, Wall Street analysts believe MRVL stock’s position at the heart of the hyperscaler buildout makes it worth owning.
The consensus rating on Marvell Technology remains at “Strong Buy,” with price targets as high as $321, indicating potential upside of another 10% from here.
