Goldman Sachs Maintains Buy Rating on SanDisk with 64% Upside Potential

According to潮向 Research, a Goldman Sachs report dated August 13 noted that SanDisk investors saw a 15% rise in share price following the company’s disclosure of long-term financial targets that significantly exceeded market expectations: revenue CAGR in the mid-to-high double digits from FY28 to FY30, gross margin of 80%, operating margin of 75%, and free cash flow margin above 50%. Management plans to return 100% of excess free cash flow to shareholders, having previously authorized a $6 billion buyback (approximately $4.5 billion already executed) and adding a new $14 billion authorization, bringing the total remaining buyback capacity to approximately $15.5 billion. To date, SanDisk has signed contracts with eight customers, totaling approximately $94 billion in contract value, with planned capacity covered by NBMs (long-term customer agreements) at about 50% for FY27 and 67% for FY28. The report concludes that the market’s pricing logic based on NAND cyclical trends requires recalibration; although long-term agreements require time to validate, SanDisk is reshaping revenue visibility through NBMs and unlocking incremental AI inference opportunities via HBF (High-Bandwidth Flash) technology. Goldman Sachs maintains a Buy rating and a $2,200 price target, based on a 20x multiple applied to normalized EPS of $110, compared to the current share price of approximately $1,344, implying a 64% upside potential.