In 2025, 4 out of the top 5 performing stocks were in the artificial intelligence sub-industry, with gains ranging from 208.8% to 569.6%. The boom raises questions about long-term sustainability versus cyclical highs. Data storage companies like SanDisk and Micron led the surge, fueled by AI demand.

The surge in AI use cases drove a massive demand for data storage technologies like NAND flash, DRAM, and HDDs. A shortage of supply combined with increased demand led to unprecedented price spikes for HDDs and NAND flash. However, caution is advised as inflated profits from memory and storage booms can quickly evaporate.

Despite the impressive performance of companies like Micron Technology, investors should be wary of potential overvaluation. The Motley Fool’s Stock Advisor team has identified 10 other stocks they believe have more growth potential. While the AI era may differ in terms of demand, the current pricing of memory cycle stocks suggests caution is warranted.

Read more at Yahoo Finance: The Top 4 Performing Stocks in 2025 Were All From the Same Sub-Industry. Are They Still Buys for 2026?