The stock of Marvell Technology (MRVL) is up 9% on news that the semiconductor maker is being added to the benchmark S&P 500 index.
The company, which currently trades on the Nasdaq (NDAQ) exchange, will join the S&P 500 on June 22 and will sit among the 500 leading U.S. companies.
S&P Global (SPGI), which manages the S&P 500, said electronic manufacturing company Flex (FLEX) is also joining the benchmark U.S. index later in June.
Marvell and Flex will replace Pool Corp. (POOL) and The Campbell’s Company (CPB), whose struggling stocks are being removed from the index.
Companies whose stocks are added to indexes such as the S&P 500 typically rise as mutual funds and exchange-traded funds (ETFs) that track the indices are required to buy them.
Marvell, which has a market capitalization of $230 billion U.S., specializes in designing high-performance microchips used in data centre infrastructure such as cloud computing.
The company is headquartered in Silicon Valley and was founded in 1995.
In its first-quarter earnings report, Marvell beat analyst estimates and posted $2.4 billion U.S. in revenue, while projecting additional growth on the strength of its data centre operations.
MRVL stock has tripled this year, gaining slightly more than 200%, to trade at $285.78 U.S. per share.
