Marvell Technology (MRVL) has become too large for the S&P 500 index committee to continue overlooking, analysts say ahead of a key rebalancing announcement.
The chipmaker was among the largest eligible candidates during the prior two quarterly rebalancing cycles but was passed over both times without explanation.
Marvell now sits head and shoulders above every other eligible company by market capitalization, commanding roughly $264 billion as of Wednesday’s close.
Bloom Energy, the second-largest eligible candidate, was worth approximately $82 billion, making the gap between the two companies unusually wide.
S&P Dow Jones Indices is expected to announce constituent changes on Friday, in line with its standard quarterly rebalancing schedule.
Marvell “is widely expected to be the next company included in the S&P 500,” Jeffrey Favuzza, who works on the Jefferies trading desk, said in a note to clients on Wednesday.
The company became eligible for the index late in 2025 after satisfying the profitability requirement that had previously blocked its inclusion.
Over the past year, Marvell has maintained an average market capitalization of approximately $54 billion, lending its recent surge added credibility in the eyes of index selectors.
The index committee retains broad discretion when selecting new members and is not strictly required to choose the most valuable eligible candidates among those meeting profitability, valuation, and float thresholds.
Marvell is not the only sizable information technology candidate under consideration, with electronics-manufacturing firm Flex also drawing attention after its AI-fueled stock surge.
Flex carries a market cap of $59 billion, dwarfing Twilio, the next-largest constituent in the S&P MidCap 400 at $34 billion, making it substantially oversized for that index.
S&P Dow Jones Indices has recently shown a clear preference for migrating oversized midcap components into the S&P 500 to prevent large companies from skewing the performance of smaller-company indexes.
Migrations also minimize disruption for the funds that track multiple S&P indexes simultaneously, giving the committee further incentive to act on bloated midcap constituents.
There is recent precedent for the committee to select two companies from the same sector simultaneously, as happened in the March rebalance when Lumentum Holdings and Coherent both earned spots.
S&P Dow Jones Indices did not immediately respond to a request for comment on the anticipated additions ahead of Friday’s announcement.
