Micron Technology's NAND Revenues Reach $2.7B: Is It a Growth Lever?

Micron Technology MU experienced 22% sequential and year-over-year growth in NAND revenues in the first quarter of fiscal 2026, which now represents 20% of its topline. The growth was mainly driven by increased shipments and price rise due to tight industry supply and favourable product mix.

The management of Micron Technology emphasised that since the industry's NAND supply remains constrained amid rising demand, MU will be able to grow its shipment by 20% in 2026. MU is experiencing strong demand for its G9 NAND due to growing traction in data center solid state drive (SSD)  and client SSD products, which contain NAND.

In fact, the G9 NAND will be the primary driver of NAND bit growth in calendar 2026. Micron Technology’s launch of the world’s first PCIe Gen6 SSD, enabled by G9 NAND, will add to the momentum. And since data center NAND revenues exceeded $1 billion in the first quarter of fiscal 2026, this trend is expected throughout the fiscal year.

Artificial Intelligence (AI) has been a major consumer of storage and memory products. MU has capitalized on this with its QLC NAND, including G9 QLC, which is becoming crucial for AI-driven storage demand and cost-efficient, high-capacity data center use cases. NAND, which is at the core of 122TB and 245TB QLC G9 SSDs, is now entering qualification at multiple hyperscale customers.

For Micron Technology, the growth in NAND demand is not a cyclical recovery; it’s a structural rise in demand as AI workloads bank on NAND for training, inference and video-heavy GenAI.

How Competitors Fare Against MU Stock

Micron Technology faces strong competition from Sandisk SNDK and Seagate Technology Holdings plc STX in the data storage market. Sandisk is highly focused on bringing advanced storage technologies and broad flash storage products for AI workloads in datacenters, edge devices and consumers.

Sandisk’s data center revenues have picked up 26% sequentially, mainly due to AI-driven NAND demand led by hyperscalers, NeoCloud providers and OEM customers. 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 Technology’s Price Performance, Valuation and Estimates

Shares of MU have gained 142.1% in the past six months compared with the Zacks Computer - Integrated Systems industry’s growth of 51.1%.

MU Six-Month Price Performance Chart

From a valuation standpoint, MU trades at a forward price-to-sales ratio of 4.33X, higher than the industry’s average of 4.28X.

MU Forward 12 Month (P/S) Valuation Chart

The Zacks Consensus Estimate for MU’s fiscal 2026 earnings implies year-over-year growth of 278.3%. The estimates for fiscal 2026 earnings have been revised upward in the past 30 days.

MU 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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