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SanDisk, Western Digital, and Micron Technology were all standout stocks last year.
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These stocks saw significant gains due to increased demand for memory and storage solutions.
Over the last three years, tech stocks have been seen as solid investments, mainly due to the growth in artificial intelligence (AI). Last year continued this trend, but the top performers were actually firms focused on memory and storage rather than data analytics or semiconductors.
The three leading stocks in the S&P 500 last year were SanDisk (NASDAQ:SNDK), Western Digital (NASDAQ:WDC), and Micron Technology (NASDAQ:MU). Let’s explore how these companies performed, their current valuations, and whether they’re still worthwhile investments as we move into 2026.
SanDisk made its debut in the S&P 500 last November. After being spun off from Western Digital earlier in the year, it has only been trading for a limited time. Still, it achieved an impressive 559% increase in 2025.
Western Digital had acquired SanDisk back in 2016, but the two have since parted ways. SanDisk is now focusing on products like flash drives and solid state drives (SSDs), which cater to quick storage needs. In its latest quarterly results, which ended on October 3, 2025, it reported revenue of $2.3 billion—a 23% rise from the previous year, and the company mentioned it’s collaborating with five major firms in the hyperscale sector to meet the growing AI storage demand.
The company’s market cap stands at around $40 billion, which might attract those looking for potential AI investments. However, its revenue was impacted by interest expenses, leading to a 47% drop in net income recently. The stock has a modest valuation, trading at 20 times forward earnings, but potential investors should be cautious given its dependency on hyperscalers and fluctuating AI demand.
Western Digital, on the other hand, has a business model centered on storage products including hard drives. In its latest quarter, it reported impressive growth of 27%, with revenue hitting $2.8 billion, and it saw profits almost double from $493 million to nearly $1.2 billion.
Its high gross profit margins make Western Digital’s stock well-positioned for growth, which has surged 238% over the past year, placing it second on this list. The stock’s forward P/E ratio is around 25 times. Given the ongoing demand for data storage solutions, Western Digital might offer greater stability for long-term investors, especially as a reputable brand in storage tech.
Completing this list is Micron Technology, another player in the memory and storage sector. Although it thrived alongside AI’s growth, the company recently announced it would be exiting its consumer business, focusing instead on larger, strategic clients in rapidly growing sectors.
While it’s unfortunate that they have to narrow their focus, moving towards business products like DRAM for mobile devices could position Micron favorably for AI-related growth. Analysts predict the stock could climb by 198% in 2025, making it an attractive option as it currently trades at just 10 times forward earnings.
Micron’s recent growth rate was 57%, with an impressive return of about 40%, suggesting it could be a solid choice for investors seeking growth opportunities.
However, before considering SanDisk, it’s wise to take a look at additional factors and possibly compare it to other stocks that are seen as having better potential.
