Storage chip manufacturer Sandisk will be added to the S&amp;P 500 index before the market opens on November 28, replacing the position of Omnicom Group. This company, which was spun off from Western Digital in February this year, has achieved a market capitalization of nearly $30 billion, making it a rare case of directly jumping from the S&amp;P SmallCap 600 index to the S&amp;P 500 index.
Since its spin-off, Sandisk's stock price has soared more than fourfold, closing at $226.96 on Monday. The stock price rose 13.3% on that day, and after-hours trading increased by another 8% to $245.25. This surge is primarily driven by strong demand for its flash memory and chip products.
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This adjustment means that passive funds tracking the S&amp;P 500 index will be forced to buy Sandisk shares, potentially further driving up the stock price. It also marks the recognition of the storage chip industry in the AI-driven technology cycle.
<h2>Strong Demand for Storage Chips, Rare Leap in Ranking</h2>
Previously, Sandisk was the largest company by market capitalization in the S&amp;P SmallCap 600 index, with a market value close to $30 billion. It is relatively rare for a company to jump directly from the small-cap index to the S&amp;P 500 index, usually reflecting significant changes in the company's fundamentals.
The company was independently listed after spinning off from Western Digital in February this year. Within just a few months post-spin-off, Sandisk's stock price has cumulatively increased by more than four times. Sandisk's performance benefits from strong market demand for flash memory and other chip products. As a storage chip manufacturer, the company's products are widely used in consumer electronics, data centers, and other fields.
Strong market demand has driven rapid growth in the company's market capitalization, ultimately qualifying it for inclusion in the S&amp;P 500 index. This change also reflects the overall improvement in the prosperity of the storage chip industry.
Sandisk will officially join the S&amp;P 500 index before the market opens on November 28, while Omnicom Group will be removed from the index. This adjustment will prompt a large number of passive funds tracking the S&amp;P 500 index to adjust their holdings and buy Sandisk shares

SNDK

This adjustment means that passive funds tracking the S&P 500 index will be forced to buy Sandisk stocks, potentially further driving up the stock price. It also marks the recognition of the storage chip industry in the AI-driven technology cycle

- Flash storage chip manufacturer SanDisk will be added to the S&P 500 index before the market opens on November 28, replacing Omnicom Group.  
- Since its spin-off from Western Digital in February, SanDisk's stock has surged over fourfold, closing at $226.96, driven by strong demand for its flash and chip products.  
- This inclusion reflects the growing recognition of the storage chip industry amid an AI-driven tech cycle and will likely lead to increased stock purchases by passive funds tracking the S&P 500.

SanDisk has been included in the S&P 500 index, soaring this year due to the "storage bull market."