Sandisk held its Investor Day last week — its first as a standalone company since being spun off from Western Digital in February 2025 — and investors clearly liked what they heard. The company, now an independent NAND flash maker, used the event to highlight the longer-term growth opportunity tied to AI and, more importantly for the stock, laid 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. The company sees the enterprise data-center flash market potentially reaching 1.2 zettabytes by 2030 and is developing higher-density NAND and High Bandwidth Flash (HBF) technology to capture that growth. HBF, which Sandisk first unveiled at its AI Day in February 2025, stacks NAND dies to deliver far higher bandwidth than conventional flash and is being positioned as a storage counterpart to the high-bandwidth memory (HBM) used alongside AI accelerators today.

Sandisk is also moving toward longer-term customer agreements designed to improve revenue visibility and reduce some of the traditional volatility associated with the NAND business. That volatility is a defining feature of the memory industry, where NAND prices have historically cycled between shortage and glut, at times swinging even the largest producers — Samsung, SK Hynix, Micron and Kioxia — from record profits to losses. Against that backdrop, agreements already covering approximately 50% of expected FY2027 bits and roughly two-thirds of FY2028 bits would mark a notable shift in how Sandisk's revenue base is structured.

For investors, however, the financial targets were arguably the biggest takeaway. For FY2028 through FY2030, Sandisk is targeting:

• Mid-to-high teens revenue growth
• Non-GAAP gross margins potentially reaching around 80%
• Non-GAAP operating margins potentially reaching around 75%
• Operating expenses potentially falling to approximately 5% of revenue
• Adjusted free-cash-flow margins of around 50%
• 100% of excess cash returned to shareholders after funding investment in the business

Those are ambitious targets, and the margin goals in particular stand out against the memory industry's track record, where NAND producers' profitability has historically swung sharply with the pricing cycle rather than holding at the levels implied by an 80% gross margin and 75% operating margin. But if Sandisk can deliver, the financial model would be exceptionally profitable. The combination of mid-to-high teens revenue growth, operating margins potentially reaching 75%, and free-cash-flow margins around 50% would be impressive. The commitment to return excess cash to shareholders adds another possible catalyst.

Judging by the price action since Investor Day, traders have taken notice.

In last week's post, Sandisk had moved back above its 100-day moving average, currently at $1,409.30, as well as its 200-hour moving average at $1,457.80. Holding above those levels kept the technical bias tilted in favor of buyers.

The price then moved above the 38.2% retracement of the decline from the June all-time high at $1,519.71, with that level holding as support into Thursday's close. The stock surged 13.67% on Thursday, added another 7.39% on Friday, and is up more than 9% today.

From Thursday's low just ahead of the Investor Day event, the stock has now risen more than 34%.

Looking at the hourly chart, today's high reached $1,827.99, stopping about $10 short of the 61.8% retracement of the decline from the June 22 all-time high. That retracement comes in at $1,838.46 and is now the next key upside hurdle.

A break above $1,838.46 would open the door toward an important swing area between approximately $1,863 and $1,952. That zone has a history of defining both support and resistance. The lower end initially acted as resistance in early June before becoming support later in the month. After the price broke below the area in early July, subsequent rebounds stalled near the upper end on July 9 and July 10. From there, the stock began the sharp decline that ultimately took it to just above $1,000 on July 29, as valuation concerns and a broader correction in AI and semiconductor shares weighed on the stock.

Since that July 29 low, however, the technical picture has changed dramatically. Sandisk shares are now up more than 80%, with last week's Investor Day providing the latest fundamental catalyst for the surge. The next checkpoints on the fundamental side will come in quarterly results, where investors can track long-term agreement coverage, NAND pricing and margin trends as early evidence of progress toward the FY2028-FY2030 framework.

The buyers clearly have control, but they are now approaching an important technical test. The 61.8% retracement at $1,838.46 is the first hurdle. If the stock can get and stay above that level, the $1,863-$1,952 swing area becomes the next major target zone.

After an 80% rally from the July low and a 34% surge since just before Investor Day, those levels should offer an important test of whether buyers can keep the momentum going or whether profit-taking begins to slow the advance.