SanDisk shares rocketed 13.7% on Thursday, pushing the stock’s four-session gain to an extraordinary 25.8% as investor enthusiasm intensifies.
The memory-chip company has now surged 541% so far this year, making it one of the most dramatic stock stories in the technology sector in 2026.
The rally is spreading across the memory and storage industry, with Micron Technology (MU) climbing 4.2% and Western Digital (WDC) jumping 7.3% on the same session.
SanDisk is riding a powerful wave of AI-driven storage demand, and management has handed Wall Street a detailed road map for growth stretching through the end of the decade.
The company projects revenue will grow at a mid-to-high-teens rate from fiscal 2028 through fiscal 2030, broadly in line with bit growth across the industry.
Under its long-term financial framework, SanDisk expects adjusted gross margins of approximately 80% and adjusted operating margins of around 75%, with operating expenses representing roughly 5% of revenue.
Adjusted free cash flow is expected to run at approximately 50% of revenue, and management stated it intends to return 100% of excess cash to shareholders once the business is fully funded.
Central to SanDisk’s growth strategy are its New Business Model agreements, which already cover 50% of the company’s bits for fiscal 2027 and about two-thirds of bits for fiscal 2028.
The company currently holds NBM agreements with eight customers, two of which expanded their deals during the latest quarter, with the agreements averaging around four years in length.
CFO Luis Visoso told MarketWatch that SanDisk wants NBMs to be a predominant practice given that they are profitable and less volatile than prior deal structures.
Visoso explained that knowing what customers want for a certain time period allows SanDisk to plan operations and spending with far greater precision and efficiency.
SanDisk and South Korean peer SK Hynix have also announced a consortium to develop industry standards for High Bandwidth Flash, with samples expected to ship to customers next year.
Visoso noted that participation from Google and Meta Platforms in the HBF consortium helps validate how critical the technology will be to next-generation AI infrastructure.
The combination of long-term customer agreements, aggressive margin targets, and emerging HBF technology gives analysts concrete reasons to push their price targets significantly higher.
