SanDisk was included in the S&P 500 index and surged this year due to the "storage bull market."

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Storage chip manufacturer SanDisk will be added to the S&P 500 Index before the opening of trading on November 28, replacing Omnicom Group. The company, which was spun off from Western Digital this February, has become a rare case of jumping directly from the S&P SmallCap 600 Index to the S&P 500, thanks to its nearly $30 billion market capitalization.

Since its spin-off and listing, SanDisk’s stock price has soared more than fourfold, closing at $226.96 on Monday. On that day, the share price jumped 13.3% in a single session and rose another 8% after hours to $245.25. This surge was mainly driven by strong demand for its flash memory and chip products.

This adjustment means passive funds tracking the S&P 500 Index will be forced to purchase SanDisk shares, potentially pushing the stock price even higher. It also marks the market’s recognition of the memory chip industry in an AI-driven technology cycle.

Strong Demand for Memory Chips, Rare Leapfrog Advancement

SanDisk was previously the largest company by market value in the S&P SmallCap 600 Index, with a market cap close to $30 billion. A direct leap from the small-cap index to the S&P 500 is a rare occurrence, usually reflecting significant changes in a company's fundamentals.

The company was spun off and listed independently from Western Digital this February. In just a few months after the spin-off, SanDisk’s share price has already soared more than fourfold. SanDisk’s strong performance is attributed to robust 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 the company’s rapid market capitalization growth, ultimately qualifying it for entry into the S&P 500. This change also reflects the overall uptrend in the memory chip industry.

SanDisk will officially join the S&P 500 Index before the opening of trading on November 28, while Omnicom Group will be removed from the index. This adjustment will prompt a large number of passive funds that track the S&P 500 to adjust their portfolios and purchase SanDisk shares.

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