3 days ago
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Sandisk’s AI-fueled rally has turned it into an “elephant” successful the S&P SmallCap 600, and that could enactment the banal up of bitcoin-treasury play Strategy (MSTR) successful the contention for the S&P 500’s adjacent unfastened seat.
Sandisk (SNDK), a Western Digital spinout focused connected flash retention and solid-state drives, has exploded astir 515% successful the past 3 months to a marketplace capitalization of astir $40 billion.
Stephens expert Melissa Roberts reportedly said that Sandisk is present an “elephant” wrong the S&P SmallCap 600 (SML), wherever nary different constituent is valued supra $11 cardinal and the banal already carries a 2.6% scale weight.
Melissa Roberts is simply a managing manager who leads Stephens’ Strategic Opportunities & Index Rebalancing research. She began her vocation arsenic an equity probe expert successful 2002 and brings much than 2 decades of acquisition tracking scale rebalancing dynamics
That size mismatch, she argued, makes Sandisk a earthy campaigner for promotion to the S&P 500 (SPX) successful the adjacent circular of scale changes.
Sandisk began arsenic a dedicated flash-storage institution aft Western Digital divided its operations successful aboriginal 2025. Western Digital separated its accepted hard-drive part from its solid-state retention business, creating Sandisk arsenic a pure-play shaper focused connected NAND flash representation and SSDs. By carving retired the flash unit, the institution gained the independency to acceptable its ain pricing, negociate proviso much tightly and align afloat with the exploding request coming from AI information centers and unreality infrastructure providers.
Related: Cathie Wood buys $30M of sinking crypto stock
To articulation the S&P 500, a institution indispensable conscionable these basal rules:
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Be a U.S. institution (based successful the U.S.).
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Market worth large enough, usually astatine slightest $22–23 billion.
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Profitable successful the astir caller 4th AND implicit the past year.
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At slightest 10% of shares indispensable beryllium publically traded (public float).
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Stock indispensable person beardown regular trading volume.
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A squad of scale committee members indispensable hold that it fits.
Sandisk lone joined the S&P SmallCap 600 successful February 2025 aft being spun retired of Western Digital Corp. (WDC).
The institution reported gross of astir $1.70 billion, down 1% year-on-year and 10% sequentially, but inactive up of guidance. Non-GAAP nonaccomplishment per stock came successful astatine $0.30, astatine the precocious extremity of expectations, portion the institution guided to improving gross margins and higher gross successful the pursuing 4th arsenic terms increases and proviso subject kicked in.
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