SanDisk (SNDK) stock held near $1,738 on September 8 as investors assessed the company’s new contract model, strong quarterly growth, and upcoming management comments. The shares also remained above the $1,720.48 breakout level before the Goldman Sachs Communacopia and Technology Conference.
SanDisk has signed New Business Model agreements with eight customers. These contracts cover about 50% of fiscal 2027 bits and roughly two-thirds of fiscal 2028 bits. The structure gives the company greater visibility into future demand and planned shipments.
The agreements aim to improve revenue and cash flow visibility during changing NAND market conditions. They also give the company more contracted demand as AI storage inventory and pricing trends remain volatile. SanDisk stock could remain sensitive to updates on customer adoption and contract coverage.
At its August 13 Investor Day, SanDisk set revenue growth targets in the mid-to-high teens for fiscal 2028 through fiscal 2030. The company also targeted non-GAAP gross margins near 80% and operating margins near 75%.
SanDisk also set an adjusted free cash flow margin target of about 50% over the same period. Investors are now watching whether demand, pricing discipline, and capacity control can support these goals. Faster capacity additions or weaker AI storage demand could pressure future margins.
SanDisk reported fiscal fourth-quarter revenue of $8.965 billion, up 51% from the previous quarter. Data Center revenue reached $2.98 billion and more than doubled sequentially. Management linked much of the increase to stronger NAND pricing.
Management said about two-thirds of the quarterly revenue increase came from pricing. SanDisk still expects fiscal first-quarter 2027 revenue of $10.3 billion to $10.8 billion and non-GAAP earnings of $44 to $46 per share. SanDisk had not reduced its guidance through September 9.
SanDisk management is scheduled to speak at the Goldman Sachs Communacopia and Technology Conference at 2:30 p.m. ET on September 9. Investors will watch comments on NAND pricing, NBM adoption, fiscal first-quarter demand, and AI storage conditions.
The company may also discuss High Bandwidth Flash, or HBF, which targets AI inference workloads that need larger memory capacity near compute systems. HBF does not currently generate revenue, but SanDisk continues to develop the technology as part of its broader AI storage strategy. Demand and pricing guidance remain key near-term references for SanDisk stock.
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