Sandisk jumps on S&P 500 inclusion announcement
Sandisk was up as much as 6% in premarket trading after S&P Global announced that the flash memory card maker will join the S&P 500 Index on November 28, 2025, replacing advertising giant Interpublic Group, which is being acquired by Omnicom.
Sandisk’s inclusion comes nine months after it was spun off from its parent company, data storage giant Western Digital. Since listing on the Nasdaq, the stock has been on a tear, with its shares soaring more than 500% this year, pushing its market cap to ~$33 billion. That’s more than double what Western Digital originally paid for the company when it bought Sandisk back in 2016 for roughly $16 billion in a bid to expand into flash memory chips, as its traditional hard disk drive business faced mounting pressure.
The company sells high-speed flash memory for consumer electronics like phones and cameras, and is pushing deeper into the data center supply chain. Its latest quarterly earnings showed strong momentum, with a 23% year-over-year increase in sales and solid guidance that topped Wall Street estimates.
Sandisk’s addition follows a broader move of tech firms joining the S&P 500 this year, including AppLovin, Robinhood, Datadog, Block, and DoorDash.
The stock pop this morning reflects the classic S&P 500 inclusion effect — a temporary rise that occurs when a stock is added to America’s flagship index, tracked by $13 trillion in passive funds and ETFs that are required to buy newly included stocks. Indeed, that effect is back in force this year, after losing steam for much of the last decade.
Go Deeper: The S&P 500 inclusion effect springboard is back in a big way
Sandisk’s addition follows a broader move of tech firms joining the S&P 500 this year, including AppLovin, Robinhood, Datadog, Block, and DoorDash.
The stock pop this morning reflects the classic S&P 500 inclusion effect — a temporary rise that occurs when a stock is added to America’s flagship index, tracked by $13 trillion in passive funds and ETFs that are required to buy newly included stocks. Indeed, that effect is back in force this year, after losing steam for much of the last decade.
Go Deeper: The S&P 500 inclusion effect springboard is back in a big way
