Core Viewpoint - Sandisk has experienced a significant surge in its market capitalization, making it a strong candidate for promotion to the S&P 500 due to its size and performance within the S&P SmallCap 600 [1][2]. Company Overview - Sandisk, a spinout from Western Digital, focuses on flash storage and solid-state drives, and has seen its market cap rise to approximately $40 billion after a 515% increase over the past three months [1][3]. - The company was established as a dedicated flash-storage entity after Western Digital separated its traditional hard-drive division from its solid-state storage business in early 2025 [3]. Financial Performance - Sandisk reported revenue of about $1.70 billion, which represents a 1% decrease year-on-year and a 10% decrease sequentially, but still exceeded guidance [5]. - The non-GAAP loss per share was $0.30, aligning with the high end of expectations, while the company anticipates improving gross margins and higher revenue in the next quarter due to price increases and supply discipline [5]. Index Eligibility - Sandisk became eligible for the S&P 500 after joining the S&P SmallCap 600 in February 2025, following its spinout from Western Digital [4]. - To qualify for the S&P 500, a company must meet specific criteria, including a market value typically between $22–23 billion, profitability in the most recent quarter and over the past year, and a minimum public float of 10% [7].
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