Tech Shakeup on the S&P 500

MRVL ^GSPC BMY NVDA In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Jon Quast, Matt Frankel, and Rachel Warren explain what Marvell Technology and Flex do as well as weigh in on whether they could be hidden gems. They also talk about: Why Bristol Myers Squibb stock has gone nowhere for five years. How to think about investing when you’re young. To catch full episodes of all The Motley Fool s free podcasts, check out our podcast center. When you re ready to invest, check out this top 10 list of stocks to buy. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marvell Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!* Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. *Stock Advisor returns as of June 14, 2026. This podcast was recorded on June 8, 2026. Jon Quast: There s another semiconductor stock headed for the S&P 500. You re listening to Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I m Jon Quast, and I m joined today by contributors Matt Frankel and Rachel Warren. We re going to dip into our mailbag today, not once but twice. But first, we wanted to start with our lead story, and that is about once a quarter, the S&P 500 removes some companies from the index and adds other companies. This is a index that tracks roughly 500 of the largest, most profitable U.S.-based companies. There are some times where a company gets acquired or something like that, and then another company gets added in between the regular rebalancings, but we had this regular one, and Pool Stock and Campbell Soup Company are out. As a shareholder of Pool and a lover of Goldfish crackers, I m disappointed with that. But we have a couple of new ones heading in and that is Marvell and also Flex. While the indexing itself isn t really something material that we Foolish investors really base an investment thesis on, sometimes it is fun to bring a new stock to our attention as they get added to the large index here, so we thought it would be fun in this episode to talk about these. I m going to start here with Rachel. We want to talk about Marvell going into the index, basically, my question here for Rachel is, what is Marvell? What does it do? What is so interesting about the timing here is Nvidia CEO Jensen Huang says he believes that this can be a $1 trillion dollar company some day. I want you to speak to that as well, Rachel. Rachel Warren: Yeah. I do think that this could very much qualify under the moniker of a hidden gem. Marvell Technology, for anyone who s not familiar, this is a data infrastructure powerhouse. They specialize in the high-speed optical interconnect chips and custom AI silicon. It s really essential in today s day and age for transmitting data across massive server clusters. As you noted, Jon, Jensen Huang recently declared Marvell the next trillion-dollar company. He said this because, as AI models scale, computing has to be distributed across an entire data center. This makes Marvell s high-bandwidth connectivity a key solution to the industry s biggest physical bottleneck, which is data movement. Now, you might be thinking a one trillion dollar milestone sounds outrageous for a company that s currently valued in the $200 billion market cap range. But I think that Huang s prediction is actually a reasonable long-term thesis. It s also backed by Nvidia s own two billion dollar equity stake in Marvell. That s something that s very important to note, as well. But Marvell s path to one trillion dollars, there s a few key drivers here. There’s a massive dual-engine revenue expansion. Hyperscalers are using Marvell to design custom AI chips. That s a business that s projected to cross $10 billion in revenue by the company s fiscal 2029. The optical business is growing at a 70%+ growth rate, and that s as they re linking distributed GPU clusters at the speed of light. If Marvell sustains this very robust growth trajectory in the mid-double digits, if they re able to hit th

Tech Shakeup on the S&P 500

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