What happened: Sandisk (SNDK) stock jumped 7% in premarket trading on Friday, extending gains from a 12% rise in the prior session.
What's behind the move: Wall Street was overwhelmingly bullish on the NAND flash memory maker's long-term growth targets for 2028 through 2030 announced at the company's investor day.
Sandisk sees annual revenue growth in the mid-to-high teens between 2028 and 2030. The company also sees non-GAAP gross margins at about 80%.
Analysts cheered the company's improved business model and the sustainability of its pricing, backed by various US hyperscalers.
RBC Capital analysts said customer contracts are "multi-year in nature, are detailed by quarter/month, have fixed pricing with variable component, and are supported by financial guarantees."
The financial structure of those agreements is giving Wall Street confidence that Sandisk's momentum can continue in what has traditionally been a highly cyclical industry.
"While memory market trends remain volatile amid an unprecedented demand and pricing environment, management provided an outlook toward sustainable margins, returns and (possibly more importantly) lower volatility through the cycle," Raymond James analysts wrote in a note.
JPMorgan assigned an Overweight rating on the stock, with analyst Harlan Sur noting Sandisk "is in many respects uniquely positioned to capture the ongoing structural inflection in NAND demand driven by rapid growth in AI inference."
What else you need to know: Sandisk, which spun off from Western Digital (WDC) in February 2025, has been one of the stock market's biggest winners this year as memory and storage have emerged as key bottlenecks in the AI infrastructure build-out.
Wall Street sees the supply deficit extending into next year and beyond.
The stock has been volatile but has gained more than 540% year to date. Investors have gone through bouts of concern about memory pricing and whether the industry could eventually swing into oversupply as companies race to meet surging demand.
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