Historically, newly added S&P 500 stocks see stronger trading volumes and short-term price spikes as funds adjust their holdings. This year, several companies tied to the artificial intelligence boom are benefiting from that trend, including Marvell Technology, Flex Ltd., and Lumentum Holdings. After all, as demand for AI infrastructure, networking chips, and optical connectivity solutions accelerates, these stocks are attracting attention from both Wall Street and retail investors looking for the next major growth opportunity.

Marvell Gets an Immediate Boost

On the morning of June 8, the company announced it would join the S&P 500 on June 22. As a result, the stock soared about 9% in premarket. 

Fueling even more momentum for the stock, 

Jensen Huang, CEO of NVIDIA, recently described Marvell Technology (NASDAQ: MRVL) as a potential future trillion-dollar company. He highlighted the company’s networking and connectivity chips, which play a critical role in modern AI data centers where thousands of processors must rapidly exchange data to perform complex computing tasks.

Marvell currently has a market cap of $230.4 billion and just posted strong earnings.

“Marvell delivered record first-quarter fiscal 2027 revenue of $2.418 billion, up 28% year-over-year, and guided second-quarter revenue to $2.7 billion at the mid-point, representing 35% year-over-year growth. We expect revenue growth to continue accelerating each quarter throughout fiscal 2027, driven by continued strength in our data center business,” said Marvell CEO and Chairman Matt Murphy, as quoted in a company press release.

Flex Earns a Spot in the S&P 500

On June 22, Flex (NASDAQ: FLEX), the provider of electronic manufacturing services, will also join the index. With a market cap of $55.66 billion, the stock soared from an April low of about $70 to a recent high of $151.92 thanks to its strong position in the AI infrastructure market.  

The company just posted EPS of 93 cents, which beat by five cents. Revenue of $7.48 billion, up 16.9% year over year, beat by $500 million. Plus. Barclays’ analysts just raised their price target on Flex to $203 from $174 on June 4, keeping a Buy rating.

Lumentum Offers a Preview of the S&P 500 Effect

Lumentum (NASDAQ: LITE) was added to the S&P 500 on March 23, running from about $710 to $800 a share shortly after. 

Investors are rushing to buy optical networking companies, like LITE, because they’ve become an essential part of the artificial intelligence boom. 

That’s because optical networking, which transmits data as pulses of light, can deliver far more bandwidth and higher speeds than traditional copper wiring. In addition, Nvidia announced a $2 billion multi-year agreement with LITE in March to help accelerate the adoption of advanced optical technologies. 

Also, according to Goldman Sachs, optical networking is quickly becoming the next hot trend for the AI boom, as demand drives the need for faster data exchange and lower latency. 

The Opportunity Ahead

S&P 500 inclusion remains one of the strongest catalysts a stock can receive, often triggering immediate institutional buying and increased investor interest. 

For companies, such as those mentioned above, operating at the center of the AI revolution, the impact can be even greater. As artificial intelligence spending continues to expand, investors may want to keep a close eye on newly added S&P 500 companies that are positioned to capitalize on one of the market’s most powerful long-term growth trends.

One reason is the growing excitement around Marvell. Jensen Huang, CEO of Nvidia (NASDAQ: NVDA), just said Marvell could be the next potential trillion-dollar company. He highlighted the importance of Marvell’s networking and connectivity chips, which help data centers move information quickly between thousands of connected processors. His comments helped drive a rally in Marvell and other optical networking stocks.

Another reason is that optical networking has become a critical technology for artificial intelligence. Unlike traditional copper cables, optical networks transmit data using pulses of light, allowing for much higher speeds, greater bandwidth, and lower delays. As AI systems grow larger and more complex, the need for faster data transfer continues to increase.

AI Networking Boom Continues

According to Goldman Sachs, networking is becoming the next major area of investment in AI infrastructure. Faster, low-latency data exchange is essential for improving AI computing performance and supporting increasingly powerful models.

The firm estimates that the optical networking market could grow from roughly $15 billion in 2026 to nearly $154 billion by 2028.

In addition, we have to consider that the industry is facing a significant supply-demand imbalance. As artificial intelligence companies build larger computing clusters, they need tens of thousands of GPUs connected through ultra-fast optical links. At that scale, traditional copper cables can no longer deliver the required performance.

To help, Nvidia has reportedly asked suppliers to increase production capacity for indium phosphide lasers by as much as 20 times by 2030. The company has also committed approximately $2 billion to help secure future supply.

As artificial intelligence adoption accelerates, companies that provide the optical networking technology needed to connect massive systems could be positioned for substantial growth.

Early Days for Artificial Intelligence

For one, consider this. There are about 4,000 operational data centers in the U.S. right now. An additional 1,500 to 3,000 are being planned or under construction. According to Pew Research, the South has 754 planned data centers. The Midwest has 419 planned. The West has 277 planned, and the Northeast has about 106 planned. 

Two, the artificial intelligence boom is still accelerating.

Forecasts now place the value of artificial intelligence between $1.7 and $3.5 trillion by the early 2030s, with the most aggressive estimates topping $7 trillion by 2035. And judging by the surge in corporate investment, the market is moving toward the high end of those projections.

Three, warnings of an “AI bubble” are increasingly being dismissed by top analysts.

Goldman Sachs says, “it believes the AI story is just getting started – and the investments that seem huge today will be dwarfed by the benefits AI will deliver,” as noted by Quartz.com. 

Long term, the investment bank says that artificial intelligence adoption could add $20 trillion to the U.S. economy. AI, according to Goldman Sachs, is already delivering those gains in productivity when deployed right.”

JPMorgan’s Mary Callahan Erdoes added, “AI is presenting opportunities not fully appreciated or understood yet,” as noted by CNBC. “AI itself is not a bubble. That’s a crazy concept… We are on the precipice of a major, major revolution in a way that companies operate.”

“So, if you say to yourself, is AI in a bubble, I feel you have to get very granular on how you’re going to answer that, because in the U.S., we’re starting to gain traction, but we’re nowhere near the ability to have the stuff all to the bottom line.” 

For investors, that means the upside potential is still there.