These growth stocks have experienced substantial increases, with some rising between 198% and 559% over the past year.
In recent years, tech stocks have been standout performers, largely due to advancements in artificial intelligence (AI). Last year continued this trend, but surprisingly, the top performers weren’t from the usual sectors like data analytics or semiconductors. Instead, companies specializing in memory and storage products took the lead.
The three best-performing stocks in the S&P 500 last year were SanDisk (SNDK +12.81%), Western Digital (WDC +6.81%), and Micron Technology (MU +5.53%). Let’s take a closer look at how these companies have performed, their current valuations, and whether they still present good investment opportunities as we approach 2026.
SanDisk: 559% increase
SanDisk joined the S&P 500 only recently, in November, and was spun off from Western Digital in February, so it hasn’t been on the market for a full year. Yet, it saw an astonishing 559% growth in 2025.
After its acquisition by Western Digital in 2016, both companies have now decided to operate independently. SanDisk offers products like flash drives and solid-state drives (SSDs), which are ideal for fast storage. In its latest quarterly report ending October 3, 2025, SanDisk reported revenues of $2.3 billion, marking a 23% increase from the previous year. They mentioned partnerships with several major hyperscale clients capitalizing on the rising demand driven by AI technology.
While SanDisk’s $40 billion market cap might attract investors interested in AI, the reality is more complex—interest expenses negatively impacted overall revenue, leading to a significant 47% drop in net income in the latest quarter.
Despite its seemingly attractive valuation at 20 times forward earnings, potential investors should exercise caution, as the company’s dependence on major hyperscalers and the current lack of bottom-line growth raises concerns. Personally, I’m hesitant to invest in this stock right now given the overly optimistic outlook and thin margins.
Western Digital: 238% increase
Western Digital, primarily focused on hard drives and external storage, has also seen impressive growth, achieving a 27% revenue increase to $2.8 billion in its most recent quarter, coinciding with SanDisk’s reporting period. Unlike SanDisk, Western Digital’s profit surged from $493 million to nearly $1.2 billion.
Thanks to its healthy profit margins, the stock price appears well-positioned for investments. The company has enjoyed a 238% increase over the last year, securing its spot as second on our list, with a forward P/E ratio of 25.
For investors, Western Digital could offer greater stability and predictability in the long run. Given the ongoing data storage needs, especially with AI’s rise, this company might be a solid tech investment for the year ahead, given its well-established reputation in storage solutions.
Micron Technology: 198% increase
Micron Technology rounds out this trio, also focused on memory and storage. However, the company recently announced a decision to exit its Crucial consumer business to concentrate on “larger, strategic customers in fast-growing sectors.”
This decision is a bit disappointing—continuing both sectors would have been nice. Still, focusing on core business products, like dynamic random access memory (DRAM) used in mobile devices and computers, might allow Micron to better harness growth opportunities related to AI.
Micron’s stock has jumped 198% in 2025, making it a potentially promising investment, trading at roughly 10 times forward earnings as per analyst predictions. Concentrating on corporate customers could position Micron for further growth.
With a growth rate of 57% reported for the latest period ending November 27, 2025, and an attractive return of around 40%, it seems like a compelling buy for growth investors. Micron’s future focus might make it a wise choice for those looking to invest.
