Overview
- SanDisk, which held its Investor Day on Aug. 13, presented a long‑term plan forecasting mid‑to‑high‑teens annual revenue growth for 2028–2030 and adjusted gross margins near 80 percent.
- The company detailed New Business Model (NBM) contracts that lock multi‑year pricing with major cloud customers and already commit more than one‑third of expected FY2027 bit output under fixed and variable terms.
- SanDisk gave near‑term anchors with Q1 FY2027 guidance calling for $10.30 billion to $10.80 billion in revenue and non‑GAAP EPS of $44 to $46, and it announced a policy to return 100 percent of excess cash to shareholders.
- Wall Street reacted with a wave of upgrades and higher price targets, including JPMorgan’s Overweight initiation and several firms boosting targets into the mid‑thousands, while some analysts warned the stock’s valuation now prices in sustained tight NAND markets.
- The company’s surge follows its 2025 spin‑off from Western Digital and blockbuster fiscal 2026 results that generated about $20.25 billion in revenue, but industry cyclicality, possible new NAND capacity, Kioxia exposure, and customer concentration remain the clearest risks to the plan.