From Commodity to Cash Machine? Sandisk Targets 80% Margins in AI Storage Boom

Sandisk Corp. (NASDAQ: SNDK ) is betting that surging artificial intelligence demand and a new contract-based sales model can make the notoriously cyclical NAND memory business more predictable. At its 2026 Investor Day, Sandisk outlined a fiscal 2028 through fiscal 2030 model targeting mid-to-high-teens revenue growth. It also expects non-GAAP gross margin of about 80%, non-GAAP operating margin near 75%, and adjusted free cash flow margin of roughly 50%. Counterpoint Research analyst Neil Shah said the strategy could reshape Sandisk’s business as AI shifts more NAND demand toward higher-value enterprise storage. Sandisk Locks In AI-Era NAND Demand A key part of that strategy is Sandisk’s New Business Model, or NBM. The company has signed eight customers under agreements covering about 50% of its NAND bits in fiscal 20...