:max_bytes(150000):strip_icc()/GettyImages-2233055128-913f5f0cb2b14f2eb0556661e5b046fa.jpg "This Memory Stock’s Red-Hot Run Has It Joining the S&P 500 Index")
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Key Takeaways
- Sandisk will join the S&P 500 index on Friday, replacing Interpublic Group, which is set to be acquired by Omnicom Group.
- Shares of Sandisk have gained 500% since the company was spun off in February from Western Digital.
Another deal has created space for a shake-up in the S&P 500, which is now set to welcome one of the year’s hottest stocks.
S&P Dow Jones Indices late Monday announced that data storage company Sandisk (SNDK) would join the benchmark index before the start of trading Friday.
The company, which was spun off from Western Digital (WDC) in February, is set to take the space vacated by Interpublic Group (IPG), which is due to be acquired by Omnicom Group (OMC). That deal, the two marketing firms said Monday, is expected to be completed by the close of business Wednesday.
Why This News Matters
Inclusion in an index, especially a major one like the S&P 500, often provides a boost to stocks as it can introduce the company to a new audience of investors.
Sandisk stock has been a huge gainer this year, climbing as its business has benefited from demand for memory driven by the AI buildout; its stock, up more than 500% in 2025, has substantially outperformed the best-performing stocks in the S&P 500. Shares were down about 3% in early trading Tuesday, tracking a broader downturn in tech stocks this morning, after soaring 13% yesterday.
The company had a market capitalization above $33 billion as of Monday’s close, according to Visible Alpha data. It’s moving up from the S&P 600 index of small-cap companies, to be replaced by PTC Therapeutics (PTCT). The run higher for Sandisk stock this year already has it valued higher than several dozen S&P 500 components.
The last two companies to join the S&P 500—Solstice Advance Materials (SOLS) and Qnity (Q)—were also created by deals: Both were the result of spinoffs.
