Marvell Technology falls after S&P 500 inclusion snub

Shares of chipmaker Marvell Technology MRVL.O drop 6.4% to $92.6 premarket

Late on Friday, S&P Dow Jones Indices announced that Carvana CVNA.N, CRH CRH.Nand Comfort Systems USA FIX.N will join S&P 500 index

On Friday, MRVL was one of the largest S&P 500 eligible new add by market capitalization alongside CVNA and CRH

Stephens analyst Melissa Roberts expected MRVL to join S&P 500 .SPX index after co reported positive GAAP earnings and cleared financial viability requirement for eligibility

MRVL jumped more than 10% last week after announcing $3.25 bln deal to acquire semiconductor startup Celestial AI

Separately, the Information reported on Friday that Microsoft is in talks to design future custom chips with Broadcom AVGO.O, switching from MRVL

Brokearge Benchmark also downgrades MRVL to "hold" from "buy"

As of last close, MRVL down more than 10% YTD vs more than 46% rise in Philadelphia SE Semiconductor Index .SOX