Marvell Technology replaces Campbell’s in S&P 500 as index tilts further toward tech

S&P Dow Jones Indices announced on June 5 that Marvell Technology will join the S&P 500, effective before markets open on June 22. The chipmaker replaces The Campbell’s Company, which drops to the S&P SmallCap 600.

Marvell shares climbed approximately 5% in extended trading following the news.

What’s actually changing

The quarterly rebalance isn’t limited to a single swap. Flex Ltd., another Information Technology company, also joins the S&P 500 alongside Marvell. Pool Corp. exits alongside Campbell’s, and both demoted companies will slide into the S&P SmallCap 600.

Marvell designs custom semiconductors and networking chips used in data centers, cloud computing, and enterprise infrastructure. Flex is a global contract manufacturer serving industries from automotive to healthcare to cloud.

Why index inclusion matters more than you think

Trillions of dollars in passive investment vehicles, from index funds to ETFs, are benchmarked to the S&P 500. When a stock enters the index, every one of those funds needs to buy shares to maintain proper tracking. That creates a wave of forced buying that can push prices higher regardless of the company’s fundamentals on any given day.

When Campbell’s and Pool Corp. leave the index, those same passive vehicles need to sell. That forced selling pressure can weigh on share prices even if nothing has changed about the underlying business.

The bigger picture: tech’s gravity keeps pulling

Both additions sit squarely in the Information Technology sector, which already dominates the index by weight. Campbell’s and Pool Corp. are moving to the SmallCap 600 because their market capitalizations no longer meet the threshold for the large-cap index.

Marvell’s inclusion reflects the market’s growing appetite for companies tied to AI infrastructure spending. Data center buildouts from hyperscale cloud providers have created enormous demand for custom silicon and high-speed networking equipment, which is exactly Marvell’s wheelhouse.

What this means for investors

For anyone holding broad market index funds, this change happens automatically. Your S&P 500 ETF will sell Campbell’s and Pool Corp., then buy Marvell and Flex. You don’t need to do anything.

For active investors, the period between an index inclusion announcement and the effective date tends to see elevated trading volume and price appreciation in the added stocks. By the time June 22 arrives and passive funds execute their trades, much of that move may already be priced in.

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