S&P 500's Top Stock of 2025: Western Digital

Core Insights - The S&P 500 Index (SPX) achieved a 16.4% gain in 2025, ranking among the top seven annualized returns over the past 20 years, driven by outperforming tech stocks benefiting from the artificial intelligence boom [2] Company Performance - Western Digital (WDC) achieved a remarkable 283% return in 2025, outperforming competitors like Micron Technology (MU) at 239% and Seagate Technology (STX) at 219% [3] - WDC's stock performance was characterized by a total of 31.7% post-earnings returns across four earnings reports in 2025, with only five weekly losses after April [4] - The stock reached a record high of $188.77 on December 11 but struggled to surpass $189 despite multiple attempts [5] Options Trading Insights - WDC was noted for having the highest average straddle return in 2025 at 101.1%, with a positive return 74% of the time, indicating strong performance in options trading [9][10] - Seagate Technology (STX) also performed well in straddle returns, averaging 67.3% with a positive return 57% of the time [9][10] Industry Outlook - Analysts suggest that data storage companies will continue to benefit from the ongoing demand for AI, even as investors shift away from hyperscalers [11] - The current market conditions, including a low volatility expectation indicated by a Schaeffer's Volatility Index (SVI) of 51%, present a favorable opportunity for options traders [11]