Shares of flash storage company SanDisk (SNDK) jumped 13% higher on news that the company is being added to the benchmark S&P 500 index.
SanDisk’s addition to the S&P 500 comes nine months after the company was spun off by Western Digital Corp. (WDC).
SanDisk will replace marketing company Interpublic (IPG), which is being acquired by Omnicom (OMC). SNDK stock will be added to the S&P 500 index before the start of trading on Nov. 28.
Stocks often rally when they’re added to the benchmark S&P 500 because mutual funds and exchange-traded funds (ETFs) that track the index are required to buy the shares.
Western Digital bought SanDisk in 2016 for $15.6 billion U.S. This February, Western Digital spun off its flash business into a separate publicly traded company.
SanDisk’s stock has soared since the spin-off, gaining 530% this year to trade at $226.96 U.S. per share. The company now has a market capitalization of $33.26 billion U.S.
SanDisk sells storage drives for gaming computers, digital cameras, and security cameras. It is also trying to land deals with large-scale artificial intelligence (A.I.) data centers.
Omnicom announced plans to acquire Interpublic in December 2024, and the deal has received the antitrust approvals needed to complete the transaction.
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