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Can Data Center SSD Demand Reignite Micron's NAND Revenue Growth?
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Key Takeaways
Micron Technology's NAND revenues rose 22% year over year and sequentially to $2.7B in Q1 FY26.
MU's NAND growth was driven by strong SSD demand, which led the data center NAND revenues to top $1B in Q1.
MU is shifting toward higher-value NAND products as AI and cloud workloads boost storage intensity.
Micron Technology, Inc.’s (MU - Free Report) NAND business has struggled in the past years due to weak pricing and heavy exposure to consumer devices. However, that picture is now changing as artificial intelligence (AI) and cloud expansion are driving demand for data center solid-state drives (SSDs), which is boosting MU’s NAND revenues.
In the first quarter of fiscal 2026, Micron Technology’s NAND revenues soared 22% year over year as well as sequentially to $2.7 billion. MU noted that bit shipments increased in the mid-to-high single-digit percentage range sequentially, while the average selling prices rose in the mid-teen percentage range in the first quarter. The robust growth was primarily driven by strong demand for its data center SSD portfolio. Its revenues from the data center NAND portfolio exceeded the one-billion-dollar mark in the first quarter.
AI workloads generate massive amounts of data that must be stored, accessed and moved quickly. This is increasing demand for high-capacity and high-performance enterprise SSDs. Compared with client devices like PCs and smartphones, data centers use far more NAND per system, creating a more durable demand base. As cloud providers expand AI infrastructure, storage intensity continues to rise.
Micron Technology is well-positioned to benefit from this trend. The company has been focusing on higher-value NAND products such as data center SSDs rather than low-margin consumer solutions. This mix shift supports better pricing and margins. As hyperscalers continue to invest aggressively in the AI infrastructure space, they are preferring long-term contracts to secure memory supply and capacity. This trend is likely to boost demand for Micron Technology’s data center SSDs.
Analysts are also optimistic about MU’s NAND growth prospects. The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 NAND revenues is pegged at $15.24 billion, indicating year-over-year growth of 79.3%.
How Micron’s Rivals Compete in the NAND Space
Sandisk Corporation (SNDK - Free Report) and Seagate Technology Holdings Plc (STX - Free Report) are among the two competitors that directly compete with Micron Technology in the NAND space.
Sandisk operates as a pure-play NAND storage vendor with strong consumer and enterprise SSD partnerships. The company is highly focused on bringing advanced storage technologies and broad flash storage products for AI workloads in data centers, edge devices and consumer devices. Sandisk’s data center revenues increased 26% sequentially in the first quarter of fiscal 2026, mainly due to AI-driven NAND demand led by hyperscalers, NeoCloud providers and OEM customers.
Seagate Technology is a major force in the hard-disk drive market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. However, the company is also developing its presence in the SSD market through portfolio expansion and partnerships. Most recently, in January 2026, Seagate Technology unveiled LaCie Rugged SSD Pro5, which offers ultra-fast Thunderbolt 5 speed for filmmakers, photographers and audio specialists.
Micron’s Price Performance, Valuation and Estimates
Shares of Micron have surged around 231.7% over the past year compared with the Zacks Computer – Integrated Systems industry’s gain of 94.3%.
Micron One-Year Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 9.83, significantly lower than the industry’s average of 17.98.
Micron 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 297.5% and 30.9%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.
Image: Bigstock
Can Data Center SSD Demand Reignite Micron's NAND Revenue Growth?
Key Takeaways
Micron Technology, Inc.’s (MU - Free Report) NAND business has struggled in the past years due to weak pricing and heavy exposure to consumer devices. However, that picture is now changing as artificial intelligence (AI) and cloud expansion are driving demand for data center solid-state drives (SSDs), which is boosting MU’s NAND revenues.
In the first quarter of fiscal 2026, Micron Technology’s NAND revenues soared 22% year over year as well as sequentially to $2.7 billion. MU noted that bit shipments increased in the mid-to-high single-digit percentage range sequentially, while the average selling prices rose in the mid-teen percentage range in the first quarter. The robust growth was primarily driven by strong demand for its data center SSD portfolio. Its revenues from the data center NAND portfolio exceeded the one-billion-dollar mark in the first quarter.
AI workloads generate massive amounts of data that must be stored, accessed and moved quickly. This is increasing demand for high-capacity and high-performance enterprise SSDs. Compared with client devices like PCs and smartphones, data centers use far more NAND per system, creating a more durable demand base. As cloud providers expand AI infrastructure, storage intensity continues to rise.
Micron Technology is well-positioned to benefit from this trend. The company has been focusing on higher-value NAND products such as data center SSDs rather than low-margin consumer solutions. This mix shift supports better pricing and margins. As hyperscalers continue to invest aggressively in the AI infrastructure space, they are preferring long-term contracts to secure memory supply and capacity. This trend is likely to boost demand for Micron Technology’s data center SSDs.
Analysts are also optimistic about MU’s NAND growth prospects. The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 NAND revenues is pegged at $15.24 billion, indicating year-over-year growth of 79.3%.
How Micron’s Rivals Compete in the NAND Space
Sandisk Corporation (SNDK - Free Report) and Seagate Technology Holdings Plc (STX - Free Report) are among the two competitors that directly compete with Micron Technology in the NAND space.
Sandisk operates as a pure-play NAND storage vendor with strong consumer and enterprise SSD partnerships. The company is highly focused on bringing advanced storage technologies and broad flash storage products for AI workloads in data centers, edge devices and consumer devices. Sandisk’s data center revenues increased 26% sequentially in the first quarter of fiscal 2026, mainly due to AI-driven NAND demand led by hyperscalers, NeoCloud providers and OEM customers.
Seagate Technology is a major force in the hard-disk drive market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. However, the company is also developing its presence in the SSD market through portfolio expansion and partnerships. Most recently, in January 2026, Seagate Technology unveiled LaCie Rugged SSD Pro5, which offers ultra-fast Thunderbolt 5 speed for filmmakers, photographers and audio specialists.
Micron’s Price Performance, Valuation and Estimates
Shares of Micron have surged around 231.7% over the past year compared with the Zacks Computer – Integrated Systems industry’s gain of 94.3%.
Micron One-Year Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 9.83, significantly lower than the industry’s average of 17.98.
Micron 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 297.5% and 30.9%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.
Image Source: Zacks Investment Research
Micron Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.