Marvell Technology Inc (NASDAQ:MRVL) shares jumped 10% in early trading after it was confirmed that the stocks will be added to the S&P 500 index.
The shares had been up in afterhours trade Friday following the announcement of its upcoming inclusion in the benchmark S&P Dow Jones Indices as part of its quarterly reshuffle.
Since the start of the year, the semiconductor stock has rocketed over 230%, soaring over 450% over the past five years.
Earlier in the week, the share price was given a boost by a public declaration by Nvidia CEO Jensen Huang that Marvell could be "the next trillion-dollar company".
Other recent fuel has been provided by upbeat broker commentary following blowout first-quarter earnings at the end of last month.
Wall Street treats S&P 500 inclusion both as a badge of honour and as a demand event, as entry into the benchmark typically triggers automatic buying from index funds and ETFs.
S&P Dow Jones Indices said one other company is being added to the index, Flex Ltd, a manufacturing and supply-chain company. Its shares rose 3.5% in early trade, before falling 0.7% to $150.92.
The incoming pair replace Pool Corporation and Campbell’s Co for when trading begins in two weeks' time, Monday June 22.
