SanDisk gains nearly 9% again; the market is trading more than just higher storage prices

SanDisk closed its latest trading session up 8.94%, after rising more than 11% at one point intraday, while Micron also rose 4.12%. The continued flow of funds into storage stocks is not driven by short-term speculation, but by the market reassessing the long-term storage demand brought by AI.

SanDisk’s FY2028 to FY2030 targets are highly aggressive: maintaining mid-to-high double-digit revenue growth, achieving a non-GAAP gross margin of around 80%, an operating margin of around 75%, and an adjusted free cash flow margin of around 50%; after completing business investments, it also plans to return 100% of excess cash to shareholders.

More importantly, there is visibility. The company has signed long-term agreements with 8 customers, including 3 U.S. hyperscalers, expected to cover around 50% of shipments in FY2027 and rise to approximately two-thirds by FY2028.

SanDisk reported revenue of $8.97B in the previous fiscal quarter, up 51% quarter over quarter, while data center revenue doubled sequentially and gross margin reached 84.6%.

Simply put, AI is pushing NAND from a highly cyclical commodity toward an infrastructure asset with long-term orders and cash flow characteristics. But with the stock’s gain for the year already extremely substantial, what really needs to be verified next is whether an 80% gross margin can withstand the storage cycle, rather than hold only when supply and demand are at their tightest. #@Gate 广场