MU/NAND Flash & Storage — Scenario Model
Blue = input assumption|Black = computed

NAND Flash & Storage — Scenario Model

Current Price
$425
NAND Flash & Storage Component
$40/sh
Market Implies
90% chance of upside scenarios
5% collapse probability

Scenario Overview

ScenarioEV$/shProbRevenueGross Margin %Ebit Margin %FcfKey Gate
mega bull$57B$5275%enterprise majority
bull$14B$1310%enterprise ssd scale
base$4B$35%
bear($1B)$05%trough recovery
collapse($2B)$05%margin collapse

Gate Milestones

Growth is gated by milestones. Cost step-changes and capability unlocks are tied to specific milestones.

2026
Y1
gen6 ssd dominance
Gen 6 SSD becomes de facto standard for hyperscale AI
Unlocks: Design wins lock in multi-year revenue streams
Micron 9650 launch Aug 2025
2027
Y2
ai inference storage
AI inference drives 10x storage growth per data center
Unlocks: Enterprise SSD TAM expands massively
Industry analysis
2029
Y4
enterprise majority
Enterprise SSDs reach 65%+ of Micron NAND revenue
Unlocks: Blended margin lift from premium mix
TrendForce enterprise SSD growth
2026
Y1
gen6 ssd share gains
Micron 9650 Gen 6 SSD gains enterprise design wins
Unlocks: Higher ASPs and share in enterprise
Micron product launch Aug 2025
2028
Y3
enterprise ssd scale
Enterprise SSDs reach majority of Micron NAND revenue
Unlocks: Mix shift improves blended margins
TrendForce enterprise SSD growth
2027
Y2
chinese expansion
YMTC and other Chinese NAND makers expand aggressively
Unlocks: Consumer NAND pricing collapse
YMTC 232-layer production
2028
Y3
margin pressure
NAND gross margins drop below 10%
Unlocks: Near-breakeven, potential margin drag on company
2023 NAND downturn precedent
2030
Y5
trough recovery
Supply cuts bring NAND back to modest profitability
Unlocks: Standard cyclical recovery
Historical pattern
2027
Y2
chinese flood
YMTC + other Chinese NAND at scale, aggressive pricing
Unlocks: Consumer NAND pricing collapses globally
YMTC 232-layer, export control circumvention
2028
Y3
margin collapse
NAND margins near zero across the industry
Unlocks: Micron considers strategic alternatives for NAND
2023 NAND downturn precedent

Full Year-by-Year Models

Blue = input · Black = computed · Click to expand

Market-Implied Probability Reconciliation

Given these scenario EVs, what probability weights would the market need to assign to produce the current market-implied value of $40/share?

ScenarioNAND EVPer ShareImplied Prob.Weighted Contrib.
mega bull$57B$5274.5%$39
bull$14B$1310.1%$1
base$4B$35.1%$0
bear($1B)$-15.1%$-0
collapse($2B)$-25.1%$-0
Total100%$40/sh

Note: These probabilities apply to NAND's contribution to Micron equity. HBM and conventional DRAM contribute separately.

Target contribution: $40/sh. Residual: $0.0/sh.