Micron Bets on G9 NAND SSDs: Is it the Next Growth Catalyst?

Micron Technology MU is betting big on memory storage as a driver of its next phase of growth. In the third quarter of fiscal 2025, Micron’s NAND revenues grew 16% year over year to $2.2 billion, driving its market share in data center and client SSDs to new highs. The company is now ranked as the second biggest supplier in data center SSDs and is pushing deeper into AI-focused infrastructure.

In July 2025, Micron launched a new line of SSDs that are powered by its G9 NAND technology. These new SSDs are aimed at strengthening its NAND portfolio. These new additions include the 9650 SSD, which is the world’s first PCIe Gen6 SSD, delivering up to 28 GB/s read speeds and 5.5 million IOPS, aimed at keeping GPUs fully utilized during AI workloads. 

Next is the 6600 ION SSD, which introduces industry-first 122TB E3.S SSDs with plans to expand to 245TB next year, while enabling data centers to store more information in less space and use less power than hard drives. Lastly, the 7600 Gen5 SSD is aimed at mainstream data center workloads, while delivering sub-1 millisecond latency with higher energy efficiency.

The company expects these products to benefit from trends like the growing adoption of artificial intelligence in PCs. Looking ahead, management expects NAND bit supply growth for calendar 2025 to remain below the industry's bit demand growth. This limited supply scenario could result in increased prices, which supports the scope for margin expansion. 

Together, these factors point to improving momentum in Micron’s NAND business, supported by growing SSD demand. The Zacks Consensus Estimate for fiscal 2025 NAND revenues is pegged at $8.55 billion, indicating year-over-year growth of 18.3%. Fiscal 2025 total revenues are estimated to grow 48% to $37.17 billion.

How Competitors Fare Against Micron

Micron competes with Western Digital Corporation WDC and Seagate Technology Holdings plc STX in the data storage market.

Micron competes with Western Digital in the NAND market. Western Digital is a diversified storage company with a broader portfolio that includes both traditional hard disk drives (HDDs) and NAND-based SSDs.

Seagate is a major force in the HDD market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. Seagate is also developing its presence in the SSD market through portfolio expansion and partnerships.

Micron’s Price Performance, Valuation and Estimates

Shares of Micron have rallied around 90.7% year to date compared with the Zacks Computer – Integrated Systems industry’s growth of 38%.

MU YTD Price Performance

From a valuation standpoint, MU trades at a forward price-to-sales ratio of 3.6, slightly lower  than the industry’s average of 3.79.

MU Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings implies a year-over-year increase of approximately 62%. Estimates for fiscal 2026 have been revised upward in the past seven days.

Micron Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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