Editor’s Note: Anthropic is targeting an October 2026 IPO. OpenAI CFO says it is planning to go public in early 2027. |
That means the Pre-IPO window is quickly closing. And there’s limited time for you to invest before these private stocks start trading. |
Go here now to secure your shares. |
SanDisk (Nasdaq: SNDK) held its Investor Day in New York on August 13. |
Management used it to make one argument above all: this is not the memory business you remember. |
That's a bold claim for a NAND flash company. |
Memory has always been brutally cyclical. Spot pricing. Boom-bust capacity. Margins that swing from great to negative and back. |
So, I read the presentation closely. Here's what management actually committed to. |
For fiscal 2028 through 2030, SanDisk laid out a financial framework: |
Revenue growth in the mid-to-high teens annually Non-GAAP gross margins near 80% Operating margins near 75% Adjusted free cash flow margin around 50%
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Management also pledged to return 100% of excess cash to shareholders. |
Anthropic and OpenAI are creating huge demand for SanDisk memory. Go here to claim your shares – before IPO day. |
The centerpiece is what SanDisk calls its New Business Model. |
These are long-term agreements, now signed with eight customers. Three of them U.S. hyperscalers. The deals cover roughly half the company's bits in fiscal 2027 and about two-thirds in fiscal 2028. |
They carry committed volumes, floor pricing, and about $16.5 billion in financial guarantees. Total minimum contracted revenue at floor pricing is cited near $94 billion. |
That last part matters. |
The old knock on NAND was that nobody could see more than a quarter ahead. Contracts stretching four-plus years, backed by guarantees, are a real change — if customers honor them through a downturn. |
Wall Street responded. |
· JPMorgan moved to Overweight with a $2,250 target |
· Goldman Sachs reiterated Buy at $2,200 |
· Bernstein went to $3,00 |
Consensus targets now cluster around $2,100 to $2,240. |
With the stock recently around $1,561, that consensus implies roughly 30% to 40% upside potential. |
That's the bull case. Now the other side, because it's real. |
Goldman said plainly that the long-term contracts "still need to be proven." That will take time to show up in the stock's multiple. |
Memory stocks have historically de-rated hard after peak cycles. And SNDK has already run up enormously — its 52-week range spans roughly $43 to $2,350. |
Floor pricing protects volume, not demand. If AI storage demand cools, or Chinese suppliers add capacity, the framework gets tested. |
The low forward multiple tells you the market hasn't fully bought the "less cyclical" thesis yet. That's the debate. |
Here’s my take: the contracted revenue base and the shift toward data-center AI demand are genuine improvements to a business that badly needed them. |
Whether that earns a lasting re-rating depends on SanDisk delivering on the FY28–30 plan. No NAND company has done that before. |
The setup is compelling. It isn't risk-free. Anyone sizing a position should treat it that way. |
Demand for AI compute has sent SanDisk shares soaring. |
Have you already grabbed a stake in Anthropic and OpenAI – before they go public? |
Here’s how to get started. |
Ian Wyatt
Editor, Daily Profit |
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