Marvell Technology's stock surged 6.27% during the night session, marking a significant upward movement for the semiconductor company.
The rally is primarily attributed to the announcement that S&P Dow Jones Indices will include Marvell Technology in the S&P 500 index as part of its latest quarterly rebalancing. This inclusion is expected to trigger substantial passive fund inflows as ETFs and index-tracking portfolios adjust their holdings to match the updated benchmark composition.
Positive sentiment was further bolstered by Nvidia CEO Jensen Huang's public endorsement at Computex, where he called Marvell the next trillion-dollar company and highlighted its critical role in providing networking and connectivity chips essential to AI data center infrastructure. The company also reported strong fiscal first-quarter revenue growth of 28% year-over-year and raised its full-year revenue guidance.
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