Marvell Technology (NASDAQ:MRVL) shares climbed in after-hours trading on Friday after the chipmaker secured a spot in the S&P 500 index.
S&P Dow Jones Indices said Friday that the chipmaker will join the benchmark index before markets open on June 22, replacing pool equipment distributor PoolCorp (NASDAQ:POOL).
Marvell shares closed Friday down 16.7% at $263.47 and in after-hours trading, it rose 3.5% to $272.78, according to Benzinga Pro.
Marvell's inclusion follows a key financial milestone: the company has achieved profitability under generally accepted accounting principles, or GAAP, both in the quarter ended December and across its most recent four quarters combined.
AI Boom Continues To Fuel Marvell Stock Rally
Marvell has emerged as one of the biggest beneficiaries of the artificial intelligence infrastructure boom. Year-to-date, Marvell shares are up 194.74%.
The stock has also surged roughly 32.07% in the past five days alone, aided in part by Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang calling Marvell the "next trillion-dollar company."
Marvell's market capitalization stands at $230.48 billion.
Marvell Q1 Earnings Top Estimates While Revenue Climbs
Marvell reported quarterly earnings of 80 cents per share, topping analysts' expectations of 79 cents per share.
Revenue for the quarter rose to $2.42 billion, surpassing consensus estimates of $2.4 billion and increasing from $1.9 billion in the year-ago period.
Marvell expects second-quarter adjusted EPS of 88 cents to 98 cents versus estimates of 90 cents, while forecasting revenue of $2.57 billion to $2.84 billion compared with analysts' $2.6 billion estimate.
Benzinga Edge Stock Rankings place MRVL in the 99th percentile for Growth, reflecting a strong price trend across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Login to comment