Key Highlights
- Shares climbed 6% Friday, building on a 13% advance from Thursday’s session
- Management forecasted mid-to-high teens annual revenue growth through 2028-2030, targeting non-GAAP gross margins approaching 80%
- Long-term agreements with guaranteed pricing from three major US hyperscalers provided market reassurance
- JPMorgan initiated with Overweight, highlighting SanDisk’s strategic advantage in AI-related NAND expansion
- Price targets range from RBC’s $1,600 to Bernstein’s $3,000, with Goldman Sachs at $2,200 and Mizuho at $1,900
Shares of SanDisk (SNDK) were changing hands near $1,641 during Friday’s session, marking a 6% intraday gain that followed Thursday’s 13% surge. The consecutive rally materialized after the memory manufacturer’s investor presentation revealed ambitious long-range financial projections that captured analyst attention.
Management forecasted yearly revenue expansion in the mid-to-high teen percentage range spanning 2028 through 2030. The presentation also outlined expectations for non-GAAP gross margins hovering around the 80% threshold.
Such projections stand out considerably for a NAND flash producer competing in a sector known for cyclical swings and pricing pressure.
The presentation revealed additional details regarding SanDisk’s margin sustainability strategy. The firm has secured extended customer agreements featuring locked-in pricing structures with adjustable elements, reinforced by financial commitments from three major American hyperscale cloud operators.
According to RBC Capital, these arrangements are “detailed by quarter/month” and “supported by financial guarantees.” Such transparency represents an unusual development in the memory semiconductor space.
Raymond James recognized persistent uncertainty across the broader memory landscape but commended management for presenting “an outlook toward sustainable margins, returns and lower volatility through the cycle.”
Wall Street’s Take and Target Revisions
JPMorgan launched coverage with an Overweight designation. Harlan Sur, the firm’s analyst, stated SanDisk “is in many respects uniquely positioned to capture the ongoing structural inflection in NAND demand driven by rapid growth in AI inference.”
RBC lifted its price objective to $1,600 from a previous $1,300, while maintaining a Sector Perform stance. The investment bank anticipates NAND supply-demand dynamics will achieve improved equilibrium during the latter portion of 2027.
Goldman Sachs affirmed its constructive view with a $2,200 valuation. Mizuho kept its forecast at $1,900. Bernstein SocGen Group sustained an Outperform recommendation paired with a $3,000 target.
Argus elevated the stock from Hold to Buy status, establishing a $1,600 objective while pointing to robust fundamentals and expansion guidance.
Jefferies preserved its Buy recommendation but reduced its target to $1,750 amid profitability considerations.
Latest Quarterly Performance
SanDisk delivered impressive fourth-quarter financials. Top-line results reached $8.97 billion, surpassing the Street’s $8.64 billion projection.
Per-share earnings landed at $39.25, exceeding analyst estimates by 14%. Revenue for the June period increased 51% from the previous quarter.
The quarter’s gross margin registered at 84.6%.
Share Price Momentum
Following its separation from Western Digital (WDC) in February 2025, SanDisk has emerged as one of the market’s standout performers.
Year-to-date, the equity has appreciated over 540%. Looking back twelve months, returns have reached approximately 3,174%.
The firm’s BiCS technology development roadmap continues to support what executives characterize as best-in-class capital efficiency. SanDisk has pledged to distribute 100% of surplus cash flow back to equity holders.
HBF, a developing product category, is slated for sampling activities beginning in 2027.
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