TLDR
- SanDisk stock rose 6% Friday, adding to a 13% gain from the prior session
- The company outlined annual revenue growth in the mid-to-high teens for 2028-2030, with non-GAAP gross margins near 80%
- Multi-year customer contracts with fixed pricing, backed by three US hyperscalers, gave Wall Street confidence
- JPMorgan assigned an Overweight rating, citing SanDisk’s positioning in AI-driven NAND demand
- RBC raised its price target to $1,600; Goldman Sachs and Mizuho hold targets of $2,200 and $1,900 respectively
SanDisk (SNDK) stock was trading around $1,641 on Friday, up 6% on the day, following a 13% jump in the prior session. The two-day rally came after the company’s investor day laid out long-term targets that got Wall Street’s attention.
The company is projecting annual revenue growth in the mid-to-high teens between 2028 and 2030. Non-GAAP gross margins are expected to come in around 80%.
For a NAND flash memory maker operating in a historically volatile market, those are eye-catching numbers.
The investor day also shed light on how SanDisk plans to hold those margins. The company has multi-year contracts with customers that include fixed pricing with a variable component and financial guarantees from three US hyperscalers.
RBC Capital noted the contracts are “detailed by quarter/month” and “supported by financial guarantees.” That kind of visibility is rare in the memory industry.
Raymond James acknowledged the broader market remains unpredictable but said management delivered “an outlook toward sustainable margins, returns and lower volatility through the cycle.”
Analyst Ratings and Price Targets
JPMorgan initiated coverage with an Overweight rating. Analyst Harlan Sur said SanDisk “is in many respects uniquely positioned to capture the ongoing structural inflection in NAND demand driven by rapid growth in AI inference.”
RBC raised its price target to $1,600 from $1,300, though it kept a Sector Perform rating. The firm noted it expects NAND supply and demand to reach better balance by the second half of 2027.
Goldman Sachs reiterated a positive rating with a $2,200 price target. Mizuho held its target at $1,900. Bernstein SocGen Group maintained an Outperform rating with a $3,000 price target.
Argus upgraded the stock from Hold to Buy, setting a $1,600 target and citing strong fundamentals and growth guidance.
Jefferies kept a Buy rating but trimmed its target to $1,750 over margin concerns.
Fourth Quarter Results
SanDisk’s most recent earnings were strong. Revenue came in at $8.97 billion for the fourth quarter, beating the consensus estimate of $8.64 billion.
Earnings per share hit $39.25, topping expectations by 14%. June quarter revenue rose 51% sequentially.
Gross margin for the quarter was 84.6%.
Stock Performance
SanDisk spun off from Western Digital (WDC) in February 2025. Since then, it has become one of the market’s biggest performers.
The stock is up more than 540% year to date. Over the past year, it has returned roughly 3,174%.
The company’s BiCS roadmap is driving what management calls industry-low capital intensity. SanDisk has committed to returning 100% of excess cash to shareholders.
HBF, an emerging product area, is targeted for sample production in 2027.
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