Sandisk Shares Jump 15% on Aggressive AI Growth Targets

Sandisk shares rose more than 15% following its 2026 Investor Day, where leadership presented an aggressive financial framework for fiscal years 2028 through 2030. The company targets mid-to-high teens revenue growth, non-GAAP gross margins of approximately 80%, and non-GAAP operating margins of around 75%. To support these goals, the company is developing higher-density NAND and High Bandwidth Flash (HBF) technology to meet AI inference demand, which it predicts could reach 1.2 zettabytes by 2030.

This rally follows a period of volatility. Sandisk shares had declined 45% from their June 22 high, pressured by a sector-wide rotation and a revenue outlook that missed analyst expectations despite a 175% year-over-year revenue increase to $20.2 billion in the fourth quarter of fiscal 2026. Investors had expressed concerns over the cyclical nature of the memory industry and competition from Chinese manufacturers.

To reduce volatility, the company is shifting toward a business model based on committed customer volumes. Sandisk has signed multi-year supply agreements with eight data center customers, including three U.S. hyperscalers. These contracts are expected to account for over half of NAND flash bit shipments in fiscal 2027 and two-thirds in fiscal 2028, with minimum guaranteed revenue of $94 billion. Additionally, the company revealed the tape-out of its first memory die for HBF technology, with initial samples for AI inference devices expected next year.