AI Stocks Vertiv, Lumentum and Coherent to Join S&P 500 in March Rebalancing
Three artificial intelligence-linked companies with close ties to Nvidia are set to join the S&P 500 index later this month, in a quarterly rebalancing that underscores the growing weight of AI infrastructure in America's benchmark equity index.
S&P Dow Jones Indices announced late on Friday that **Vertiv** (VRT), **Lumentum** (LITE) and **Coherent** (COHR), along with wireless spectrum operator **EchoStar** (SATS), will be added to the S&P 500 before the market open on March 23. The four incoming constituents will replace **Match Group** (MTCH), **Molina Healthcare** (MOH), **Lamb Weston** (LW) and **Paycom Software** (PAYC).
The timing of the announcement gave the additions an immediate lift. Vertiv shares jumped 5.2% in after-hours trading on Friday, though the stock had fallen 5.1% over the course of the week to close at 241.78, holding above its 21-day moving average. EchoStar climbed 3.2% after hours, recovering ground after tumbling 8% during the week to 106.24. Lumentum rose 1.7% and Coherent edged up 0.5%.
Nvidia's Fingerprints
The composition of the new additions reflects the degree to which the AI buildout has reshaped corporate fortunes in a short period. Vertiv, which provides power and cooling infrastructure for data centres, is an established Nvidia partner. Lumentum and Coherent are optical component manufacturers whose products are critical to high-speed data transmission inside AI data centres.
Nvidia added a further dimension to the story earlier in the week when it invested $2 billion each in Lumentum and Coherent, sending both stocks to fresh highs on Monday. That momentum faded as the week progressed and both names sold off, making Friday's index inclusion announcement a timely boost.
Index inclusion carries practical consequences beyond sentiment. Passive funds and index-tracking exchange-traded funds that benchmark against the S&P 500 will be required to purchase shares in all four companies ahead of the March 23 effective date, a dynamic that typically supports prices in the days leading up to rebalancing.
S&P 100 Changes
The reshuffle extended beyond the S&P 500. S&P Dow Jones Indices also announced changes to the S&P 100, the index of the largest and most liquid companies in the broader benchmark. **Micron Technology** (MU), **Lam Research** (LRCX), **Applied Materials** (AMAT) and **GE Vernova** (GEV) will join the S&P 100, displacing **Target** (TGT), **MetLife** (MET), **PayPal** (PYPL) and **American International Group** (AIG).
The S&P 100 additions again lean heavily into the semiconductor and energy transition space, with Micron, Lam Research and Applied Materials all integral to chip manufacturing supply chains that feed AI demand.
Market Context
The index announcement arrived against a turbulent market backdrop. Broader equities fell sharply on Friday, with the Dow Jones Industrial Average losing more than 450 points as oil prices extended a surge driven by the ongoing US-Iran conflict. Nvidia itself declined during the session, reflecting the uncertain mood across technology stocks despite the sector's longer-term structural tailwinds.
For the four companies being removed from the S&P 500, the demotion marks a stark contrast in fortunes. Match Group, Molina Healthcare, Lamb Weston and Paycom Software each operate in sectors that have commanded less investor attention as capital has rotated toward AI-adjacent businesses.
The March rebalancing serves as a clear illustration of how rapidly index composition can shift in response to capital allocation trends. Three of the four companies entering the S&P 500 carry direct connections to one of the most powerful forces in technology markets today, reflecting an index methodology that, while rules-based, inevitably mirrors the investment themes dominating Wall Street.
