Sandisk Corporation (SNDK) hosted its Investor Day in New York City, outlining a positive outlook marked by strong revenue growth projections, robust profit margins, and an expanded shareholder return plan. Mizuho Securities reiterates an Outperform rating on SNDK with a price target of $1,900.
The company revealed its High-Bandwidth Flash (HBF) technology, which achieves HBM-like bandwidth at a fraction of the cost, delivering significant advancements for artificial intelligence and data center applications. Sampling of HBF is set for upcoming product cycles, and partnerships with technology leaders such as Google, Meta, SK Hynix, and Tenstorrent are in place. Still, Sandisk noted that HBF may not replace HBM but unlock disaggregated layouts (Ex-2) for Al inference. Additionally, Sandisk discussed the launch of its BiCS9 and progression toward BiCS10 and BiCS13 platforms.
A new financial model was introduced, projecting a revenue compound annual growth rate of approximately 17.5% for fiscal years 2028 through 2030. This outlook estimates revenue could exceed $80 billion in fiscal 2030.
The company expects continued strength in NAND pricing and has authorized $15.5 billion in share buybacks, pledging to return all excess cash to shareholders. Mizuho projected free cash flow at around $30 billion for fiscal 2027 and $50 billion for fiscal 2028, underpinning the buyback strategy.
Mizuho noted that Sandisk’s valuation is considered conservative, trading at roughly 9 times estimated 2027 earnings, below the semiconductor sector average. The company’s product strategy, AI-driven demand, and joint ventures signal continued leadership in the market.
