Key Takeaways
- SanDisk stock climbed 6% Friday, following a 13% surge in the previous trading session
- Company projected mid-to-high teens annual revenue growth for 2028-2030, targeting non-GAAP gross margins around 80%
- Long-term customer agreements featuring fixed pricing and backed by three major US hyperscalers boosted investor sentiment
- JPMorgan initiated coverage with Overweight rating, highlighting SanDisk’s strategic position in AI-fueled NAND growth
- RBC lifted price target to $1,600; Goldman Sachs and Mizuho maintain targets at $2,200 and $1,900 respectively
Shares of SanDisk (SNDK) were changing hands near $1,641 Friday, gaining 6% during the session after posting a 13% advance the day before. The consecutive rallies followed an investor day presentation where management unveiled long-term financial projections that resonated with analysts.
Management forecasts annual revenue expansion in the mid-to-high teens range spanning 2028 through 2030. The company anticipates non-GAAP gross margins will hover around the 80% mark during this timeframe.
For a manufacturer focused on NAND flash memory—a sector known for cyclical swings—these projections represent ambitious goals.
The presentation also revealed SanDisk’s strategy for maintaining robust margins. The firm has secured multi-year customer agreements incorporating fixed pricing elements with variable components, underpinned by financial commitments from three major US hyperscale cloud providers.
RBC Capital highlighted that these contracts are “detailed by quarter/month” and “supported by financial guarantees.” Such granular revenue visibility is uncommon in the memory chip sector.
Raymond James recognized the inherent unpredictability of the broader market landscape but emphasized that management presented “an outlook toward sustainable margins, returns and lower volatility through the cycle.”
Wall Street’s Take on Price Targets
JPMorgan launched coverage with an Overweight designation. Analyst Harlan Sur 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 elevated its price objective to $1,600 from $1,300, while maintaining a Sector Perform stance. The investment bank anticipates NAND supply-demand dynamics will achieve improved equilibrium during the latter half of 2027.
Goldman Sachs reaffirmed a bullish view with a $2,200 price objective. Mizuho retained its $1,900 target. Bernstein SocGen Group continues with an Outperform rating and a $3,000 price target.
Argus elevated the stock from Hold to Buy, establishing a $1,600 objective while pointing to solid fundamentals and growth trajectory.
Jefferies maintained a Buy designation but reduced its target to $1,750 amid profitability considerations.
Q4 Financial Performance
SanDisk delivered impressive quarterly results. Fourth-quarter revenue reached $8.97 billion, surpassing Wall Street’s consensus projection of $8.64 billion.
The company reported earnings per share of $39.25, exceeding analyst estimates by 14%. Revenue for the June quarter climbed 51% from the prior period.
Quarterly gross margin registered at 84.6%.
Market Performance and Outlook
SanDisk separated from Western Digital (WDC) in February 2025. Following the spinoff, the stock has emerged as one of the market’s standout performers.
Year-to-date gains exceed 540%. Measured over a 12-month period, the stock has generated approximately 3,174% in returns.
The firm’s BiCS technology roadmap is enabling what executives describe as industry-leading capital efficiency. SanDisk has pledged to distribute 100% of surplus cash flow to shareholders.
HBF, a developing product category, is slated for sample manufacturing by 2027.
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