10 Best Performing S&P 500 Stocks in 2025

1. Sandisk Corporation (NASDAQ:SNDK)

Number of Hedge Fund Holders: 61

Year-to-Date Performance as of December 19: 569.58%

Sandisk Corporation (NASDAQ:SNDK) is one of the best performing S&P 500 stocks in 2025. On December 8, JPMorgan initiated coverage of SanDisk with a Neutral rating and $235 price target. The firm noted that SanDisk is well-positioned to capitalize on the AI-driven enterprise SSD supercycle, benefiting from a low-cost structure through its joint venture with Kioxia. However, JPMorgan cautioned that the company’s current pricing strength is likely a temporary cyclical peak rather than a permanent shift in the industry’s profit margins.

In its FQ1 2026 earnings report, SanDisk Corporation reported a revenue of $2.3 billion, which was a 21% sequential increase and a 23% year-over-year increase. Non-GAAP EPS surged to $1.22, which also exceeded the $0.29 recorded in the previous quarter. This was supported by a non-GAAP gross margin of 29.9%, which grew by 3.5% quarter-over-quarter as the company transitioned to its high-performance BiCS8 technology, which already accounts for 15% of total bits shipped.

Data Center revenue particularly rose 26% sequentially to $269 million, driven by cloud expansion and AI infrastructure needs. The Edge segment, which includes mobile and client storage, also climbed 26% to reach $1.387 billion, while Consumer revenue grew 11% to $652 million. Looking ahead to FQ2 2026, SanDisk projects revenue between $2.55 and $2.65 billion. Management highlighted that visibility into 2026 and 2027 is improving as customers shift toward long-term agreements to ensure supply certainty, particularly for enterprise SSDs like the Stargate portfolio.

Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the US, Europe, the Middle East, Africa, Asia, and internationally.

While we acknowledge the potential of SNDK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNDK and that has 100x upside potential, check out our report about this cheapest AI stock.

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