Recall that last week, Sandisk held its Investor Day, and investors clearly liked what they heard.
The company used the event to highlight the longer-term growth opportunity tied to AI and, perhaps more importantly for the stock, laid out an aggressive financial framework for FY2028 through FY2030
On the product side, Sandisk expects AI inference to significantly increase demand for flash storage in data centers. The company sees the enterprise data-center flash market potentially reaching 1.2 zettabytes by 2030 and is developing higher-density NAND and High Bandwidth Flash (HBF) technology to capture that growth. Sandisk is also moving toward longer-term customer agreements designed to improve revenue visibility and reduce some of the traditional volatility associated with the NAND business.
Those agreements already cover approximately 50% of expected FY2027 bits and roughly two-thirds of FY2028 bits. For investors, however, the financial targets were arguably the biggest takeaway. For FY2028 through FY2030, Sandisk is targeting: Mid-to-high teens revenue growth Non-GAAP gross margins potentially reaching ~80% Non-GAAP operating margins potentially reaching ~75% Operating expenses potentially falling to approximately 5% of revenue Adjusted free-cash-flow margins of ~50% 100% of excess cash returned to shareholders after funding investment in the business Those are ambitious targets, but if Sandisk can deliver, the financial model would be exceptionally profitable.