Sandisk stock rose sharply Thursday after the memory supplier dispelled worries about a slowdown in the memory market with an ambitious long-term growth plan.
Sandisk expects revenue to grow by mid-to-high-teen percentages annually between fiscal years 2028 and 2030, it said at its 2026 Investor Day. The company also forecast adjusted gross margins to stabilize at around 80% during that period, with an adjusted free-cash-flow margin of about 50%.
Sandisk plans to return all excess cash to shareholders "after investing in the business," said Chief Financial Officer Luis Visoso.
Sandisk shares soared 15% on Thursday. The stock has now risen more than 3,000% over the last 12 months.
Few analysts on Wall Street make exact forecasts four years out, so Sandisk's outlook wasn't about surpassing estimates so much as addressing the market's lingering fears.
Limited supply of memory -- a crucial component in artificial-intelligence computing -- has pushed prices higher and fueled Sandisk's rise. Adjusted gross margins hit 84.6% last quarter, up from just 26.4% the year before.
But memory is a cyclical industry -- and some investors have worried that supply will recover more quickly than expected, which could bring prices and margins back down to Earth. Sandisk doesn't see that happening for the rest of the decade.
The company is increasingly relying on multiyear agreements to lock in revenue and earnings years out. These deals represent about half of its memory capacity in fiscal 2027, which began in July, and roughly two-thirds of capacity in 2028.
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