Micron's NAND Sales Hit $8.5B in FY25: Can the Momentum Continue?

Micron Technology (MU) reported record NAND revenues of $8.5 billion in fiscal 2025, up 18% year over year. In the fourth quarter of fiscal 2025, NAND sales were $2.3 billion, comprising about 20% of the company’s total revenues. Moreover, NAND revenues in the fourth quarter grew 5% compared to the prior quarter. The growth came from better pricing, which was up in the high single digits, even though bit shipments fell in the mid-single digits.

Micron is counting on its new G9 NAND to improve results. The company has ramped production of both TLC and QLC NAND, where its G9 QLC NAND is now qualified for enterprise storage. The company also strengthened its NAND portfolio with the addition of PCIe Gen6 SSDs, which are aimed at supporting high-performance data center workloads, such as AI inference and large-scale storage.

The company stated that demand in the data center storage market is being boosted by AI use cases like vector database indexing and key-value cache tiering. In addition, a shortage of hard disk drives (HDDs) is expected to help NAND demand. Micron also achieved record client SSD revenues in fiscal 2025, showing progress in its consumer storage business.

Moreover, with improving industry conditions for NAND, Micron expects a healthier supply-demand balance in 2026 to drive further growth. The Zacks Consensus Estimate for fiscal 2026 NAND revenues is pegged at $10.42 billion, indicating year-over-year growth of 22.5%. MU’s total revenues for fiscal 2026 are estimated to grow 43.4% to $53.61 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 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 119.2% year to date compared with the Zacks Computer – Integrated Systems industry’s growth of 50.2%.

MU YTD Price Performance

From a valuation standpoint, MU trades at a forward price-to-sales ratio of 3.76, slightly lower than the industry’s average of 4.04.

MU Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 100% and 12%, respectively. The Zacks Consensus Estimate for fiscal 2026 and 2027 has been revised upward in the past 30 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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