Sandisk to Join S&P 500 index After Stock Surge This Year

Sandisk Corp. secure digital extended capacity memory cards. (Keith Bedford/Bloomberg)

Key Points

• Sandisk will replace Interpublic Group in the S&P 500 index before trading on Nov. 28.
• Sandisk’s stock has risen over fourfold since its February spinoff, closing Monday at $226.96.
• The company’s market value is nearly $30 billion, driven by strong demand for its flash memory and chips.

Sandisk, the maker of memory chips, will join the S&P 500 index and replace Interpublic Group before the start of trading on Nov. 28.

Sandisk, a spinoff in February from Western Digital , has surged since the spinoff, rising more than fourfold to a closing price of $226.96 Monday. The stock was up 13.3% Monday, and has gained another 9.4% in after-hours trading to $248.39.

Sandisk has benefited from surging demand for flash memory and other chips that it produces. With a market value of close to $30 billion, Sandisk was the largest company by far in the S&P Small Cap 600 index. It’s rare for a company to make the leap from the small-cap index to the S&P 500.

Write to Andrew Bary at andrew.bary@barrons.com