The S&P 500 is up 17% in 2025, led by unexpected stars SanDisk and Western Digital. SanDisk soared 534% post-spinoff, focusing on flash memory. Western Digital rose 275%, supplying high-capacity HDDs for AI storage, with 30% revenue growth in Q4. Learn more about early retirement possibilities with three quick questions.

The S&P 500’s surge is fueled by semiconductor stocks Sandisk and Western Digital. The companies cater to cloud and AI infrastructure’s need for massive data storage, outperforming AI leaders. Sandisk’s 534% rise stems from NAND chip shortages, while Western Digital’s 275% jump is due to HDDs for AI storage needs.

Sandisk’s 534% surge in 2025 post-spinoff from Western Digital is driven by flash memory demand for AI data centers. Revenue grew 10% to $7.36 billion, with margins at 35%. Sandisk’s vertical integration led to 188% earnings growth, upgrades to “Strong Buy,” and shares rising from $40 to $228.

Western Digital’s 275% rise in 2025 focuses on HDDs for AI storage, with revenue up 30% in Q4. Q1 sales rose 27%, with gross margins at 43.5%. With 40% market share in AI HDD storage, Western Digital profits surged 631% as hyperscalers prioritize massive-scale storage.

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Read more at Yahoo Finance: The 2 Chip Stocks Leading the S&P 500’s Boom in 2025 Are Not Who You Think