S&P Global announced that four companies will be added to the S&P 500 as part of its quarterly rebalance, a move that highlights the growing role of artificial intelligence infrastructure within the leading US stock market benchmark.
The index provider reviews the composition of the S&P 500 every three months, applying criteria that include market capitalisation, profitability, liquidity and sector balance. The goal is to ensure the index continues to represent the largest and most influential publicly traded companies in the United States.
Under the latest changes, Vertiv Holdings, Lumentum Holdings, Coherent Corp. and EchoStar Corporation will join the index. They will replace Match Group, Molina Healthcare, Lamb Weston Holdings and Paycom Software, with the changes scheduled to take effect before markets open on March 23.
Because trillions of dollars in assets track the S&P 500 through index funds and exchange-traded funds, companies added to the benchmark often see increased investor demand. Shortly after the announcement on March 6, shares of the four incoming companies rose by an average of about 8 per cent as traders anticipated buying from passive investment funds.
Three of the newly added firms are closely tied to the rapid expansion of artificial intelligence technology, supplying critical infrastructure that supports large-scale computing and data processing.
Vertiv Holdings specialises in digital infrastructure used in data centres, including power systems, cooling technology and modular equipment designed to handle high-density computing workloads. The company has experienced a surge in demand as AI applications require more energy and advanced cooling solutions. In its fourth-quarter earnings report released earlier this year, Vertiv said orders had surged significantly, with its backlog reaching about $15 billion.
Lumentum Holdings produces optical components such as lasers and high-speed transceivers that enable fast data transmission inside data centres and telecommunications networks. These technologies play a key role in supporting the enormous bandwidth required for training and operating advanced AI models.
The company recently announced a long-term partnership with Nvidia that includes plans for expanded manufacturing capacity and research collaboration. The agreement also involves major purchase commitments for advanced laser components used in data centre infrastructure.
Coherent Corp. also focuses on photonics and laser technology, particularly optical interconnect systems that improve the speed and energy efficiency of large computing clusters used in AI development. The company has also disclosed a partnership with Nvidia aimed at advancing technologies used in next-generation data centres.
The fourth company joining the index, EchoStar Corporation, operates in a different sector. The firm provides satellite communications, broadband services and video entertainment, primarily through its DISH network operations. Its addition brings representation from the communications industry alongside the growing influence of technology infrastructure providers.
Market analysts say the latest reshuffle reflects how technological changes are reshaping the structure of the US stock market. As investment in artificial intelligence continues to accelerate, companies supplying the infrastructure behind those systems are becoming increasingly prominent within major equity benchmarks.
