Micron’s NAND Segment Powers Growth Amid AI Demand Surge

Micron Technology has reported a significant achievement within its NAND flash memory business, highlighting the segment's increasing strategic importance. The company's latest financial data reveals that NAND revenue reached $2.7 billion, underscoring the critical role of high-performance memory solutions in the current era of artificial intelligence. Despite a slight pullback in its share price at the close of 2025, the central question for investors is whether the momentum in NAND can propel the stock's impressive 2025 rally into the new year.

The memory chip manufacturer's results for the first quarter of its fiscal 2026, released Wednesday, exceeded expectations. Revenue from its NAND operations surged by 22% to $2.7 billion. This performance means the NAND division now constitutes approximately 20% of Micron’s total sales, indicating a notable shift in the company's business mix.

A key driver was the data center segment, where NAND-based storage sales surpassed the $1 billion threshold for the first time. Industry-wide capacity constraints and the rapid ramp-up of Micron's advanced G9 NAND technology are primary factors behind this strength. This new architecture is designed for high-capacity solid-state drives (SSDs) essential for both AI training and inference workloads. The company recently strengthened its position with hyperscale customers by launching the industry's first PCIe Gen6 SSD.

Stock Consolidation Following a Stellar Year

Micron's equity experienced a period of consolidation on the final trading day of 2025, with the price retreating from a weekly high near $299 to approximately $287. This move is viewed as understandable profit-taking following a remarkable year where the stock appreciated by roughly 250%. In a separate development, the market calmly absorbed news that CFO Mark Murphy had transferred shares as part of his estate planning.

Should investors sell immediately? Or is it worth buying Micron?

Even with this recent pause, the shares continue to trade well above their 200-day moving average, having recovered significant ground since the start of the year.

Forward-Looking Guidance and Technical Perspective

Management maintains an optimistic outlook for the current fiscal year, forecasting NAND bit volume growth of around 20%. This projection is supported by the expanding adoption of G9 technology and QLC-based products in data centers. For the upcoming second quarter, the company provided revenue guidance of about $18.7 billion, suggesting its growth trajectory remains intact.

From a chart analysis perspective, a support level appears to be forming near the $280 mark. Following the turn of the year, the resistance zone between $298 and $300 may be tested. Looking further ahead, Micron is positioned to benefit from multiple growth catalysts, including the High Bandwidth Memory (HBM) market, which is projected to grow to $100 billion by 2028.