The memory-chip company just offered revenue-growth forecasts stretching to the end of the decade, and Sandisk expects to maintain its high profitability as the years go on

Sandisk's stock was soaring Thursday afternoon following new financial forecasts.

Sandisk is riding a major wave of memory demand at the moment, and management just offered Wall Street a road map for growth stretching through the rest of the decade.

Shares of the memory-chip company were surging on Thursday following new financial targets revealed at Sandisk's $(SNDK)$ investor day. The stock is up 15.2% in midday trading, extending recent gains that bring its four-session increase to 27.7%.

Other memory and storage stocks were rising as well, including Micron Technology $(MU)$, up 6%, and Western Digital $(WDC)$, up 8%. Along with Sandisk, these are the top three stocks in the S&P 500 SPX on the day.

Among the well-received targets from Thursday's event: The NAND flash memory maker expects its revenue to grow at a mid- to high-teens rate between fiscal 2028 and 2030. The company also expects to see growth in bits, referring to an increase in memory capacity that is produced and shipped.

As the memory business evolves in the coming years, Sandisk's management anticipates that the company will be able to maintain extreme profitability. The multiyear forecasts call for gross margins, a measure of profitability, to "sustain" at around 80% in the period from fiscal 2028 to 2030.

Furthermore, Sandisk's management said it plans to return all of its excess cash to shareholders after making investments into the company.

"Our confidence in the sustainability of the model comes from our multi-year NBMs that are based on intimate relationships with our customers and grounded in innovation and collaboration," Sandisk Chief Financial Officer Luis Visoso said in a statement, referring to the company's new business model agreements with customers that span multiple years.

Evercore ISI analyst Amit Daryanani noted that Sandisk "expects the agreements to generate highly attractive returns even at floor pricing."

Sandisk's stock is up 550% so far this year.

-Britney Nguyen