SanDisk shares surge on bullish AI-driven growth outlook

SanDisk shares surged approximately 15% following its 2026 Investor Day, where management presented an aggressive long-term financial framework for fiscal years 2028 through 2030. The company aims for mid-to-high-teens annual revenue growth, supported by high demand for NAND flash memory in artificial intelligence (AI) infrastructure and data centers.

To mitigate the cyclical volatility of the memory industry, SanDisk has implemented a ‘New Business Model’ (NBM) involving multi-year agreements with eight customers. These contracts, which include three U.S. hyperscalers, secure approximately 50% of expected bit shipments for fiscal 2027 and two-thirds for fiscal 2028, representing nearly $94 billion in contracted revenue.

Financial targets include maintaining non-GAAP gross margins around 80% and operating margins near 75%. The company also announced plans to return 100% of excess cash to shareholders after necessary business investments. On the technology front, SanDisk is developing High Bandwidth Flash (HBF) and 9th-generation 3D NAND technology, the latter developed in cooperation with Japan’s Kioxia Corporation, to meet the increasing storage and speed requirements of AI inference workloads.