SanDisk (SNDK) Stock: Flash Storage Maker Gains 22% on S&P 500 Index Addition

TLDR

• SanDisk will join the S&P 500 index on November 28, replacing Interpublic Group
• The stock jumped 9% in after-hours trading and gained 13.3% during regular session on Monday
• Western Digital spun out SanDisk in February, nine months after acquiring it for $15.6 billion in 2016
• Morgan Stanley raised its price target on SanDisk to $273 from $263 with an Overweight rating
• SanDisk’s latest quarter showed 23% revenue growth to $2.31 billion and a 31% increase in exabytes sold

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SanDisk shares surged Monday following S&P Dow Jones Indices’ announcement that the flash storage maker will join the S&P 500 index. The stock climbed 13.3% during regular trading and added another 9% in after-hours activity.

Sandisk Corporation, SNDK

The index addition takes effect before market open on November 28. SanDisk will take the spot of Interpublic Group, which is being acquired by advertising giant Omnicom.

The timing marks a quick rise for SanDisk since its February spinoff from Western Digital. The company now trades with a market cap of around $33 billion, just nine months after becoming independent.

Western Digital originally purchased SanDisk in 2016 for $15.6 billion. The parent company separated its flash storage business earlier this year, allowing SanDisk to operate as a standalone entity once again.

Stocks typically rally when added to the S&P 500. Fund managers who track the index must purchase shares to match the benchmark’s composition. This forced buying creates upward pressure on newly added stocks.

Strong Financial Performance Drives Momentum

SanDisk reported strong third-quarter results on November 6. The company beat both earnings and revenue estimates for the period.

Revenue reached $2.31 billion in the latest quarter, up 23% from the year-ago period. The company also shipped 31% more exabytes of storage compared to the prior year.

The storage vendor sells products for gaming PCs, digital cameras, and security systems. Data center operators represent another key growth area for the company.

Analyst Upgrade Adds Fuel

Morgan Stanley analyst Joseph Moore boosted his price target on SanDisk shares Monday. He raised the target to $273 from $263 while keeping an Overweight rating.

The upgrade came on the same day as the S&P 500 announcement. Combined, the two pieces of news drove the stock’s double-digit gain.

SanDisk joins other technology companies that entered the S&P 500 this year. AppLovin, Datadog, DoorDash, and Robinhood all became index members in 2025.

Interpublic Group will exit the index after Omnicom completes its acquisition. The European Commission granted antitrust approval for the deal on Monday. Omnicom first announced plans to buy Interpublic in December.

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