Marvell stock rises nearly 16% to $305 on S&P announcement
Business
Marvell Technology's stock shot up nearly 16% to $305 on June 8, thanks to the announcement that it's joining the S&P 500 index later this month.
The move comes after Marvell posted steady profits for four straight quarters, and now big investment funds are set to buy its shares, so demand is expected to climb.
AI demand drives Marvell growth
Even after a brief pause caused by Broadcom's weak outlook and a stronger-than-expected US jobs report, Marvell kept its upward trend going.
The real boost? Surging demand for semiconductors powered by AI.
Since ChatGPT launched in 2022, demand for semiconductors has grown exponentially.
Their custom chip division is aiming for more than $10 billion in revenue by fiscal 2029, helped along by smart acquisitions like Celestial AI.