MU's NAND surge rides on AI-driven SSD demand, with data center traction and tight supply setting up strong growth momentum through FY27.
Micron $MU Technology, Inc.’s MU NAND business is well-positioned to benefit from the rapid growth in artificial intelligence (AI) workloads, which is driving the demand for storage solutions. AI models require fast access to massive datasets, increasing the need for high-performance storage, especially in data centers.
Micron Technology 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.
SSDs are becoming essential in AI infrastructure. Applications such as large language models and real-time data processing require quick access to massive datasets. This is increasing demand for high-performance and high-capacity SSDs, an area where Micron Technology has been expanding its portfolio. The company’s advanced SSD offerings are gaining traction among cloud and enterprise customers, helping it grow market share. During the last quarterly results, the company noted that it increased SSD market share for the fourth consecutive year in 2025.
Micron Technology also stated that demand for data center SSDs remains strong, suggesting continued growth momentum for the NAND business. Supply dynamics also support the growth. The NAND market is currently undersupplied, with limited near-term capacity additions. MU’s planned expansions will take time to impact output, suggesting that pricing conditions may remain favorable through fiscal 2027. This makes Micron Technology’s NAND growth outlook through fiscal 2027 increasingly supported by tailwinds in both demand and pricing.
The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues is pegged at $109.97 billion and $174.35 billion, respectively. 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. Anticipating the same revenue contribution from the NAND business in fiscal 2027, the segment’s revenues are anticipated to reach $37.49 billion, indicating a year-over-year increase of 58.6%.
Sandisk Corporation SNDK and Seagate $STX Technology Holdings Plc STX 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.
Shares of Micron have surged around 398.3% over the past year compared with the Zacks Computer – Integrated Systems industry’s return of 103.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 4.22, significantly lower than the industry’s average of 9.16.
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 603.9% and 63.9%, 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.
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