SanDisk shares surge following S&P 100 index inclusion announcement

SanDisk shares rose 11.9% to $1,740 following the announcement that the company will be added to the S&P 100 index, effective September 21. This inclusion has contributed to a year-to-date stock increase of approximately 500%.

The company reported quarterly sales of $8.97 billion, a 372% year-over-year increase, with gross margins reaching 84.6%. Growth is being driven significantly by the data-center sector, which saw sequential revenue more than double to $2.98 billion. SanDisk has secured $93.9 billion in long-term supply contracts with eight major data-center customers, including three leading US hyperscale providers.

Looking ahead, the company plans to release a next-generation high-bandwidth flash (HBF) chip in 2027, with volume manufacturing expected to begin in 2028. Additionally, SanDisk has increased its outstanding share-buyback authorization to $15.5 billion.