SanDisk (SNDK) shares rose sharply on Friday as investors reacted to the company’s upcoming inclusion in the S&P 100 and continued strength in its financial performance.
The stock gained as much as 8.04% during Friday’s session.
The semiconductor company is set to join the S&P 100 before trading begins on Monday, September 21, replacing longtime index member Colgate-Palmolive.
SanDisk set to join S&P 100
The S&P 100 is a subset of the S&P 500 that includes some of the largest and most established companies in the broader index.
Companies seeking inclusion in the S&P 500 must meet requirements related to factors including market capitalisation, liquidity and profitability.
S&P Dow Jones Indices announced earlier this month that SanDisk would be added to the S&P 100, replacing Colgate-Palmolive.
The upcoming inclusion could increase demand for SanDisk shares in the short term as funds and exchange-traded products tracking the index adjust their holdings.
The buying related to the change may have contributed to Friday’s share-price move.
Over the longer term, however, the company’s operating and financial performance is likely to remain a more significant factor for investors than its index membership.
The inclusion could also increase SanDisk’s visibility among institutional investors and add to the company’s profile as an established member of the broader US equity market.
Strong fiscal fourth-quarter results
SanDisk’s recent financial performance has provided another factor for investors to consider.
For its fiscal 2026 fourth quarter, which ended July 3, the company reported revenue of $8.97 billion, representing a 372% increase from the same period a year earlier and a 51% sequential increase.
Diluted earnings per share came in at $43.97, compared with a loss in the prior-year period. EPS also increased 91% from the previous quarter.
The results come as demand for memory chips used in artificial intelligence applications continues to support the semiconductor industry.
SanDisk has emerged as a beneficiary of the broader AI infrastructure buildout, with AI servers requiring significant amounts of high-speed NAND flash storage.
SanDisk shares are currently trading at about 24 times earnings and eight times forward earnings.
AI demand remains key focus
The outlook for AI-related semiconductor demand remains an important consideration for SanDisk investors.
Nvidia CEO Jensen Huang reportedly made bullish projections at an AI executive summit, saying chip sales in 2027 are expected to reach twice the level of 2026.
The projection reinforces expectations for continued demand for high-performance computing infrastructure, including memory and storage components.
SanDisk’s exposure to NAND flash storage therefore places the company within the broader investment theme surrounding AI infrastructure spending.
Wall Street’s stance also remains constructive.
Analysts have a consensus Buy rating on the stock, while the average 12-month price target is approximately $2,124.
With Sandisk preparing to enter the S&P 100 and reporting significant year-over-year and sequential revenue growth, investors will continue to focus on whether strong AI-related demand can support the company’s financial performance beyond the near-term boost associated with index inclusion.
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