Sandisk stock surges as Wall Street cheers flash memory maker's bullish outlook

What happened: Sandisk (SNDK) banal popped 3% connected Friday, extending gains from a 12% emergence successful the anterior session.

What's down the move: Wall Street was overwhelmingly bullish connected the NAND flash representation maker's semipermanent maturation targets for 2028 done 2030, announced astatine the company's capitalist day.

Sandisk sees yearly gross maturation successful the mid-to-high teens betwixt 2028 and 2030. The institution besides sees non-GAAP gross margins astatine astir 80%.

Analysts cheered the company's improved concern exemplary and the sustainability of its pricing, backed by assorted US hyperscalers.

RBC Capital analysts said lawsuit contracts are "multi-year successful nature, are elaborate by quarter/month, person fixed pricing with adaptable component, and are supported by fiscal guarantees."

The fiscal operation of those agreements is giving Wall Street assurance that Sandisk's momentum tin proceed successful what has traditionally been a highly cyclical industry.

"While representation marketplace trends stay volatile amid an unprecedented request and pricing environment, absorption provided an outlook toward sustainable margins, returns and (possibly much importantly) little volatility done the cycle," Raymond James analysts wrote successful a note.

JPMorgan assigned an Overweight standing connected the stock, with expert Harlan Sur noting Sandisk "is successful galore respects uniquely positioned to seizure the ongoing structural inflection successful NAND request driven by accelerated maturation successful AI inference."

A Sandisk adapter and microSD paper are seen successful this illustration photo. (Jakub Porzycki/NurPhoto via Getty Images) · NurPhoto via Getty Images

What other you request to know: Sandisk, which spun disconnected from Western Digital (WDC) successful February 2025, has been 1 of the banal market's biggest winners this year, arsenic representation and retention person emerged arsenic cardinal bottlenecks successful the AI infrastructure build-out.

Wall Street sees the proviso shortage extending into adjacent twelvemonth and beyond.

The banal has been volatile but has gained much than 540% twelvemonth to date. Investors person gone done bouts of interest astir representation pricing and whether the manufacture could yet plaything into oversupply arsenic companies contention to conscionable surging demand.

Ines Ferre is simply a elder concern newsman for Yahoo Finance.

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