Core Insights - SanDisk Corporation has been added to the S&P 500 index, marking a significant milestone for the company less than a year after its separation from Western Digital, indicating a successful return to independence [3][6] - The inclusion has led to a notable increase in SanDisk's stock price and trading volume, driven by the index effect, which mandates passive funds to purchase shares of newly added companies [4][5] Group 1 - SanDisk's stock surged over 13% following the announcement of its inclusion in the S&P 500, reflecting strong market anticipation of institutional demand [5] - The index effect creates a predictable wave of buying from large institutional investors, as passive index funds must acquire shares of newly added companies to maintain accurate tracking of the index [4][5] - SanDisk's strong financial performance, particularly due to demand from the AI sector, has solidified its position as a blue-chip company and enhanced its market credibility [6][7] Group 2 - The criteria for inclusion in the S&P 500 include market capitalization, liquidity, and a history of positive GAAP earnings, which SanDisk has met, affirming its business performance since becoming independent [7]
SanDisk Joins the S&P 500: Inside the Index Effect Rally