Nvidia-Backed Coherent and Lumentum Join S&P 500 Amid AI Investment Surge
Lumentum and Coherent shares rallied after S&P Dow Jones Indices announced their inclusion in the S&P 500, effective March 23. The move displaces Lamb Weston, Match Group, Molina Healthcare, and Paycom Software. Index inclusion typically triggers institutional buying as ETF managers rebalance portfolios to mirror the benchmark.
Nvidia’s recent $2 billion investments in both photonics firms underscore the AI chipmaker’s strategic positioning in optical components critical for data centers. The stakes fueled double-digit percentage gains for Coherent and Lumentum this year, outpacing the broader semiconductor index.
EchoStar and Vertiv will also join the index, reflecting shifting sector weightings toward communications infrastructure and power management—key enablers of AI deployment. Market participants note the reshuffle highlights how traditional benchmarks increasingly track technological convergence.
