ZACKSยท2025-07-28 15:01Core Insights - Micron Technology's NAND revenues increased by 16% quarter over quarter to $2.2 billion in Q3 FY25, driven by a mid-20% rise in bit shipments due to strong demand for SSDs in client and data center markets [1][10] - The company achieved record market share in client SSDs and maintained record market share in data center SSDs for three consecutive quarters, reflecting its competitive advantage [2] - Micron launched new SSDs based on G9 QLC NAND, which offer up to four times the performance of typical QLC SSDs, expected to benefit from the growing adoption of AI in PCs [3] - Management anticipates NAND bit supply growth to remain below industry demand growth in 2025, potentially leading to increased prices and margin expansion [4] - The Zacks Consensus Estimate projects fiscal 2025 NAND revenues at $8.52 billion, indicating a year-over-year growth of 17.9%, with total revenues expected to grow 46.5% to $36.79 billion [5] Competitive Landscape - Micron competes with Western Digital in the NAND market, where Western Digital has a diversified portfolio including HDDs and NAND-based SSDs [6] - Seagate is a significant player in the HDD market and is expanding its presence in the SSD market through partnerships and portfolio expansion [7] Financial Performance - Micron's shares have gained 32.2% year to date, outperforming the Zacks Computer - Integrated Systems industry growth of 27.5% [8] - The company trades at a forward price-to-sales ratio of 2.61X, which is lower than the industry average of 3.76X [11] - The Zacks Consensus Estimate for Micron's fiscal 2025 earnings suggests a year-over-year growth of 497.7%, with 2026 earnings expected to grow by 57.9% [14]