Shares of SanDisk Corp. (SNDK) surged roughly 6% on Friday, extending a 13% gain from the previous session. The stock closed at $1,641.11 and continued to edge higher in after-hours trading. This performance made the company a focal point in the market, reflecting strong investor confidence in its long-term outlook.
A major catalyst for the stock rally was the announcement of long-term growth targets for 2028 to 2030 during the company's Investor Day. SanDisk Corp. projected annual revenue growth in the mid-to-high teens and a non-GAAP gross margin of approximately 80% during this period. Wall Street reacted enthusiastically, with analysts widely praising the company's improved business model and pricing sustainability. These targets are reportedly backed by commitments from several major US hyperscale cloud providers, further boosting market confidence.
Analysts at RBC Capital highlighted that customer contracts are multi-year, with detailed quarterly or monthly terms. These contracts feature a fixed-price plus variable component structure and are supported by financial guarantees. This arrangement has convinced Wall Street that SanDisk Corp.'s growth momentum is sustainable, even in the traditionally cyclical storage industry. Analysts at Raymond James emphasized in a note that while the storage market remains volatile amid unprecedented demand and pricing environments, management has provided a vision for sustainable margins, returns, and, perhaps more importantly, lower volatility over the cycle.
JPMorgan assigned an "overweight" rating to SanDisk Corp. Analyst Harlan Sur stated that the company is uniquely positioned to capture a structural inflection point in NAND demand driven by the rapid growth of AI inference.
SanDisk Corp. was spun off from Western Digital (WDC) in February 2025 and has since become one of the biggest winners in the stock market this year, with cumulative gains exceeding 540%. Memory and storage have become a key bottleneck in the expansion of AI infrastructure, and Wall Street expects supply shortages to persist into next year and beyond. Despite significant stock price volatility, concerns linger about memory pricing trends and the potential for the industry to eventually swing to oversupply as companies race to meet surging demand. However, SanDisk Corp., with its long-term partnerships with hyperscale customers and a more robust business model, is attempting to break the traditional cyclical pattern. Overall, Wall Street remains confident in SanDisk Corp.'s long-term prospects, believing it can continue to benefit from the AI-driven wave of storage demand.
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