2025 was another big year for the S&P 500 (^GSPC +0.65%). The broad-market index finished the month up 16.4%, marking the third year of the AI-driven bull market.
While that's a one-year gain that almost any investor will be pleased with, some S&P 500 stocks did much better than that. In fact, including those that were members of the index for the full year, 11 S&P 500 stocks doubled last year.
Those were:
- Western Digital: up 282.3%
- Micron: up 239.1%
- Seagate Technology: 219.1%
- Robinhood Markets: 203.5%
- Warner Bros. Discovery: 172.7%
- Newmont: 168.3%
- Lam Research: 137%
- Palantir Technologies: 135%
- Comfort Systems USA: 120%
- AppLovin: 108.1%
- Carvana: 107.5%
You might notice a few things from that list. First, most of those stocks are tech stocks, which might not be a surprise, given the AI boom. However, if you're familiar with those stocks, you might also recognize that several of these stocks also doubled in 2024. Five of them doubled in both years, including Robinhood, Palantir, Comfort Systems, AppLovin, and Carvana.
In other words, if you're looking for stocks that will do well this year, last year's winners are a good place to start.
While a number of these stocks look well-positioned to outperform again, there's one that stands head-and-shoulders above the rest going into 2026. That's Micron (MU +5.53%), the memory chip-maker.
Image source: Getty Images
Why Micron could double again
No other stock on the list, or maybe the entire stock market, combines Micron's growth, acceleration, AI potential, and valuation, and Wall Street has significantly underestimated the company's growth potential.
Several of those features were on display in the company's latest earnings report. In the fiscal first-quarter earnings report, which came out in December, Micron reported 56% revenue growth to $13.64 billion, ahead of estimates at $12.88, and margins soared as its generally accepted accounting principles (GAAP) operating margin jumped from 25% to 45%. Adjusted earnings per share were up from $1.79 to $4.78, topping expectations at $3.94.
Micron's second-quarter guidance was even more impressive as the company called for revenue around $18.7 billion, or an increase of 132% from the quarter a year ago, and adjusted earnings per share jumped to $8.42, up from just $1.58 in the quarter a year ago.
The surge in Micron's growth has surprised not just Wall Street, but Micron itself. In its report, management said that it expects the $100 billion high-bandwidth memory (HBM) total addressable market (TAM) in the industry to arrive faster than expected.
The signs of an accelerating boom in memory continue to mount, as there are signs of a continuing shortage into 2026, and prices continue to rise.
Micron is also planning to break ground on a $100 billion megafab in upstate New York later this month, which will be the largest in the U.S., and help it further capitalize on the boom, as the facility will be home to the most advanced memory manufacturing in the world. Domestic manufacturing production has been a priority of the Trump administration, and Micron has been awarded billions of dollars as part of the CHIPS Act. It could reap further rewards as a leading chip manufacturer.
NASDAQ: MU
Key Data Points
The price is right
The chip sector, especially memory, is notoriously cyclical, but AI and the demand for high-bandwidth chips could be rewriting the rules in that area, or at least the normal limits.
Analysts now expect Micron to deliver $32 in adjusted earnings per share, and that number could still move higher. At that forecast, the stock is trading at just 10 times earnings, which is dirt cheap even with the cyclical risk in the stock.
Micron stock has already risen 15% this year on continuing enthusiasm for the memory sector. Another double looks well within reach.
