We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Micron Technology's NAND Revenues Reach $2.7B: Is It a Growth Lever?
Read MoreHide Full Article
Key Takeaways
MU's NAND revenues rose 22% sequentially and year over year to $2.7B in fiscal Q1.
MU expects NAND shipments to grow 20% in 2026 due to strong demand in G9 NAND.
MU's data center NAND revenues topped $1B and total NAND revenues crossed $2.7B in fiscal Q1.
Micron Technology (MU - Free Report) 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 - Free Report) and Seagate Technology Holdings plc (STX - Free Report) 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
Image Source: Zacks Investment Research
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
Image Source: Zacks Investment Research
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.
Image: Bigstock
Micron Technology's NAND Revenues Reach $2.7B: Is It a Growth Lever?
Key Takeaways
Micron Technology (MU - Free Report) 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 - Free Report) and Seagate Technology Holdings plc (STX - Free Report) 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
Image Source: Zacks Investment Research
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
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
MU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.