Micron's SSD Growth Drives NAND Revenues: Will it Sustain Momentum?

Micron Technology, Inc.MU is seeing strong momentum in its NAND business, largely driven by robust demand for its solid-state drive (SSD) solutions. This growth momentum is largely driven by rising data center demand, where artificial intelligence (AI) workloads are pushing the need for faster and higher-capacity storage solutions.

In the second quarter of fiscal 2026, Micron Technology’s NAND revenues soared 169% year over year and 82% sequentially to $5 billion. MU noted that bit shipments increased in the low-single-digit percentage range sequentially, while the average selling prices jumped in the high-70s percentage range in the second quarter. 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.

Another key driver is the shortage of traditional hard disk drives (HDDs), which is pushing customers toward SSDs. This shift is supporting NAND pricing and generating higher revenues for Micron Technology. At the same time, tight industry supply is keeping the pricing environment favorable, allowing the company to benefit from stronger margins.

Micron Technology is also investing in NAND technology transitions and selective capacity expansion, aimed at improving cost efficiency while supporting long-term demand growth. 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 SSDs, which will ultimately drive its NAND revenue growth. The Zacks Consensus Estimate for MU’s fiscal 2026 NAND revenues is pegged at $23.64 billion, indicating massive year-over-year growth of 178%.

How Micron’s Rivals Compete in the NAND Space

Sandisk CorporationSNDK and Seagate Technology Holdings PlcSTX 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 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. However, 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 have surged around 292.4% over the past year compared with the Zacks Computer – Integrated Systems industry’s return of 101.1%.

Micron One-Year Price Return Performance

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From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 6.56, significantly lower than the industry’s average of 10.31.

Micron 12-Month Forward P/E Ratio

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The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 578.9% and 61.3%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.

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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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This article originally published on Zacks Investment Research (zacks.com).

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