TLDR
- SanDisk shares soared 22% Monday following S&P 500 inclusion announcement
- Flash storage company takes Interpublic Group’s spot effective November 28
- Revenue climbed 23% to $2.31 billion in most recent quarter
- Morgan Stanley analyst boosted price target to $273 from $263
- Company became independent in February after Western Digital spinoff
SanDisk stock posted a 22% gain Monday after S&P Dow Jones Indices revealed the company’s promotion to the S&P 500. Shares climbed 13.3% during regular hours before extending gains 9% after the bell.
The flash storage manufacturer joins the prestigious benchmark on November 28. It fills the vacancy left by Interpublic Group, which exits following its Omnicom acquisition.
Index additions typically boost stock prices. Passive fund managers must purchase shares to mirror the S&P 500’s holdings. This mandatory buying creates upward momentum.
SanDisk now trades with a $33 billion market cap. The company returned to standalone status in February when Western Digital completed its spinoff.
Western Digital had owned SanDisk since 2016, paying $15.6 billion for the acquisition. The separation allows SanDisk to operate independently again after nine years.
Strong Quarter Supports Valuation
The company delivered better-than-expected third-quarter results on November 6. Revenue hit $2.31 billion, representing 23% annual growth.
Storage shipments increased 31% in exabytes compared to last year. Demand remained robust across consumer and enterprise segments.
SanDisk produces storage drives for gaming PCs, cameras, and security equipment. Data center customers represent a growing revenue stream for the business.
Wall Street Backing Increases
Morgan Stanley’s Joseph Moore lifted his SanDisk price target Monday. He moved the target from $263 to $273 while keeping an Overweight rating.
The analyst’s upgrade coincided with the index announcement. Both developments contributed to the stock’s sharp advance.
Multiple tech companies joined the S&P 500 this year. AppLovin, Datadog, DoorDash, and Robinhood all gained entry to the index in 2025.
Rebalancing Affects Multiple Companies
The S&P 500 changes take effect before Friday’s opening bell. Portfolio managers will adjust holdings to match the updated index.
Omnicom received European Commission approval for its Interpublic deal Monday. The advertising merger was originally unveiled in December.
Other index adjustments involve smaller benchmarks. PTC Therapeutics moves into the S&P SmallCap 600, taking SanDisk’s former position.
Upwork replaces Premier in the SmallCap 600. First Interstate BancSystem fills Hanesbrands’ slot in the same index.
Premier’s sale to Patient Square Capital concludes November 25. Gildan Activewear plans to finalize its Hanesbrands acquisition by December 1.
Fund managers tracking these benchmarks will execute trades throughout the week. The buying activity should support SanDisk shares leading up to Friday’s official inclusion.
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