SanDisk Corp. (NASDAQ:SNDK) shares plunged 12.95% in Tuesday's intraday trading session, marking a significant pullback after the stock's meteoric rise in recent months. The sharp decline comes as investors reassess the company's valuation amid speculation about its potential inclusion in the S&P 500 index.

The memory chip maker has been on a tear, with its stock surging an impressive 585% over the past six months. This remarkable rally has been fueled by a supply shock in the memory chip industry and strong demand in data center and consumer markets. SanDisk's recent upbeat Q1 results, which reported sales of $2.31 billion and net income of $112 million, further bolstered investor confidence.

However, the stock's rapid ascent and increased volatility have raised concerns among some market participants. Melissa Roberts, an analyst at Stephens, Inc., noted that while SanDisk's growth makes it a strong candidate for S&P 500 inclusion, the index committee might adopt a "wait and see" approach to ensure the company's market value and recent gains are sustainable. This uncertainty, coupled with profit-taking after the extended rally, appears to be contributing to today's significant sell-off.