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Can AI-Driven SSD Demand Drive Micron's NAND Revenue Upside Ahead?
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Key Takeaways
MU NAND revenues rose 169% YoY and 82% sequentially to $5B in fiscal Q2 2026.
Micron said data center NAND portfolio revenues more than doubled sequentially in Q2.
MU SSD share rose for a fourth straight year in 2025 as AI demand lifts NAND outlook.
Micron Technology, Inc.’s (MU - Free Report) NAND business is likely to see further upside as artificial intelligence spending drives strong demand for solid-state drives (SSDs). AI data centers need faster and larger storage systems to handle training data, inference workloads and growing use of real-time applications. This trend is creating a favorable setup for Micron Technology’s NAND business.
The memory chipmaker is already seeing strong traction in NAND, particularly in data center solid-state drives (SSDs). In the last reported financial results for the second quarter of fiscal 2026, its NAND revenues soared 169% year over year and 82% sequentially to $5 billion. The robust growth was primarily driven by strong demand for its data center SSD portfolio. Its revenues from the data center NAND portfolio more than doubled sequentially in the second quarter.
AI servers require rapid access to huge datasets. Compared with traditional hard disk drives, SSDs offer faster speed, lower latency and better power efficiency. As hyperscalers expand AI infrastructure, SSD adoption should continue rising. Supply conditions could further help revenues. The NAND market has struggled in the past years due to weak pricing, but industry discipline and stronger enterprise demand are improving the pricing scenario.
Micron Technology is also expanding its product portfolio with advanced enterprise SSD solutions, helping it compete for higher-value workloads rather than commodity markets alone. The mix shift can support margins and revenue quality. During the last quarterly results, the company noted that it increased SSD market share for the fourth consecutive year in 2025.
Rising AI-driven SSD demand gives Micron Technology a credible path to stronger NAND revenue growth ahead. The Zacks Consensus Estimate for MU’s fiscal 2026 revenues is pegged at $110.07 billion, indicating year-over-year growth of 194.5%. The consensus mark for fiscal 2026 suggests that NAND revenues will increase 178% year over year to $23.64 billion, accounting for 21.5% of total revenues.
Micron Technology’s Rivals in NAND Space
Sandisk Corporation (SNDK - Free Report) and Seagate Technology Holdings Plc (STX - Free Report) are 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 64% sequentially in the second quarter of fiscal 2026, mainly driven by strong demand for storage solutions from AI infrastructure builders, semi-custom customers and technology companies deploying AI at scale.
Seagate Technology is a major force in the hard-disk drive market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. The company is also developing its presence in the SSD market through portfolio expansion and partnerships. 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 Technology have surged around 579.8% over the past year compared with the Zacks Computer – Integrated Systems industry’s return of 167.1%.
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 6.28, significantly lower than the industry’s average of 12.47.
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 604% and 65.8%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Can AI-Driven SSD Demand Drive Micron's NAND Revenue Upside Ahead?
Key Takeaways
Micron Technology, Inc.’s (MU - Free Report) NAND business is likely to see further upside as artificial intelligence spending drives strong demand for solid-state drives (SSDs). AI data centers need faster and larger storage systems to handle training data, inference workloads and growing use of real-time applications. This trend is creating a favorable setup for Micron Technology’s NAND business.
The memory chipmaker is already seeing strong traction in NAND, particularly in data center solid-state drives (SSDs). In the last reported financial results for the second quarter of fiscal 2026, its NAND revenues soared 169% year over year and 82% sequentially to $5 billion. The robust growth was primarily driven by strong demand for its data center SSD portfolio. Its revenues from the data center NAND portfolio more than doubled sequentially in the second quarter.
AI servers require rapid access to huge datasets. Compared with traditional hard disk drives, SSDs offer faster speed, lower latency and better power efficiency. As hyperscalers expand AI infrastructure, SSD adoption should continue rising. Supply conditions could further help revenues. The NAND market has struggled in the past years due to weak pricing, but industry discipline and stronger enterprise demand are improving the pricing scenario.
Micron Technology is also expanding its product portfolio with advanced enterprise SSD solutions, helping it compete for higher-value workloads rather than commodity markets alone. The mix shift can support margins and revenue quality. During the last quarterly results, the company noted that it increased SSD market share for the fourth consecutive year in 2025.
Rising AI-driven SSD demand gives Micron Technology a credible path to stronger NAND revenue growth ahead. The Zacks Consensus Estimate for MU’s fiscal 2026 revenues is pegged at $110.07 billion, indicating year-over-year growth of 194.5%. The consensus mark for fiscal 2026 suggests that NAND revenues will increase 178% year over year to $23.64 billion, accounting for 21.5% of total revenues.
Micron Technology’s Rivals in NAND Space
Sandisk Corporation (SNDK - Free Report) and Seagate Technology Holdings Plc (STX - Free Report) are 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 64% sequentially in the second quarter of fiscal 2026, mainly driven by strong demand for storage solutions from AI infrastructure builders, semi-custom customers and technology companies deploying AI at scale.
Seagate Technology is a major force in the hard-disk drive market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. The company is also developing its presence in the SSD market through portfolio expansion and partnerships. 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 Technology have surged around 579.8% over the past year compared with the Zacks Computer – Integrated Systems industry’s return of 167.1%.
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 6.28, significantly lower than the industry’s average of 12.47.
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 604% and 65.8%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past 30 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.