Shares for flash storage provider Sandisk surged 7% in after-hours trading on Monday following its inclusion in the S&P 500.
Sandisk’s inclusion in the index occurs nine months after its spin-off from Western Digital. Sandisk will take the place of marketing firm Interpublic, which is in the process of being acquired by Omnicom, S&P Global indicated in a announcement.
This marks the latest technology firm to be added to the S&P 500, which increasingly derives its market value from internet, software, and semiconductor companies. AppLovin, Datadog, DoorDash and Robinhood joined the index earlier this year.
Stocks typically experience an uptick when they’re added to the benchmark, as fund managers who follow the S&P 500 must purchase shares to mirror the adjustments.
Western Digital acquired Sandisk in 2016 for $15.6 billion. In February, Western Digital separated its flash division as Sandisk, which now boasts a market capitalization of around $33 billion.
Sandisk produces high-speed storage drives for gaming computers, digital cameras, and surveillance cameras, and is also pursuing agreements with large-scale data center developers. Revenue in the most recent quarter surged 23% to $2.31 billion. The company reported a 31% rise in exabytes sold.
Omnicom declared intentions to purchase Interpublic in December, and on Monday announced that the transaction gained antitrust clearance from the European Commission.
