SanDisk (SNDK) shares climbed roughly 15% on Thursday after the company's 2026 Investor Day, as management unveiled long-term financial targets that surpassed Wall Street expectations and pushed back against concerns that the memory cycle is peaking.
The stock traded around $1,568 and has now risen more than 3,000% over the past 12 months. SanDisk projected mid-to-high-teen annual revenue growth from fiscal 2028 through fiscal 2030, with non-GAAP gross margins expected to stabilize around 80% and operating margins near 75%. Adjusted gross margins reached 84.6% last quarter, up sharply from 26.4% a year earlier.
CFO Luis Visoso said the company plans to return all excess cash to shareholders after investing in the business. He also said the total NAND market is expected to surpass $500 billion by 2027, with supply remaining constrained into 2028. Long-term customer agreements now cover about half of SanDisk's memory capacity in fiscal 2027 and roughly two-thirds in fiscal 2028, giving the company more revenue visibility.
SanDisk also unveiled its BiCS10 10th-generation 3D NAND technology, which improves bit density by 59% and delivers interface speeds up to 4.8Gb/s. The company outlined a commercialization timeline for High Bandwidth Flash, a technology viewed as critical for AI inference workloads. Management estimates the enterprise data center flash market could expand to 1.2 zettabytes by 2030 as AI adoption accelerates.
The rally lifted other memory and storage names, including Micron Technology and Western Digital. Wall Street commentary was also positive: Argus Research upgraded SNDK to Buy from Hold on August 10, while Evercore ISI reiterated an Outperform rating with a $2,800 price target. The Nasdaq gained 0.75% and the S&P 500 added 0.53% on the day.
