Memory names are outperforming, with the Roundhill Memory ETF up 3.6%.
Western Digital (WDC 490.62, +36.52, +8.04%) is one of the best-performing S&P 500 names today,
Sandisk (SNDK 1429.15, +84.86, +6.31%) also trades higher after laying out its FY28-FY30 model, targeting mid-to-high-teens revenue growth and a ~50% free cash flow margin as Sandisk is having it’s investor day and the traders are liking what they hear.
The company has used its 2026 Investor Day to highlight its long-term growth opportunity from AI and, more importantly for investors, lay 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, with the “enterprise data-center flash market potentially reaching 1.2 zettabytes by 2030”. The company 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 provide greater revenue visibility and reduce the traditional volatility of the NAND business. Those agreements already cover about 50% of expected FY2027 bits and roughly two-thirds of FY2028 bits.
Financial targets are the key takeaway. For FY2028-FY2030, Sandisk expects:
Mid-to-high teens revenue growth
~80% non-GAAP gross margins (high)
~75% non-GAAP operating margins
Operating expenses of approximately 5% of revenue (low)
~50% adjusted free-cash-flow margins
100% of excess cash returned to shareholders after funding investment in the business
The financial outlook is particularly bullish if Sandisk can deliver it. The combination of mid-to-high teens growth, 75% operating margins and 50% free-cash-flow margins would represent an exceptionally profitable model, while the commitment to return excess cash provides an additional potential catalyst for shareholders.