3 AI Stocks That Crushed Nvidia’s 2025 Returns and Still Look Attractive

Core Investment Theme - Artificial intelligence (AI) was the primary investment theme of 2025, leading to significant valuation increases for companies involved in AI infrastructure as billions were invested in data centers, chips, and supporting hardware [1] Nvidia's Performance - Nvidia maintained solid growth in 2025, posting record quarterly results with robust demand for its AI chips, and management expects this momentum to continue into 2026 [2] - Nvidia highlighted strong shipments of its new Blackwell and Rubin platforms, with a projected $500 billion shipment opportunity through 2026 [2] Market Comparison - Despite Nvidia's dominance, it was not the best-performing stock in the S&P 500 Index, with NVDA shares rising about 36% in 2025, while other AI-linked companies saw larger returns [3] Storage and Memory Companies - The demand for massive storage capacity surged, leading to significant stock price increases for Western Digital (WDC) and Seagate (STX), which rose approximately 282% and 225%, respectively, in 2025 [4] - Micron (MU) also benefited from the demand for high-performance memory, with its stock climbing about 236% in 2025 [4] Valuation Insights - Despite outperforming Nvidia's returns, Western Digital, Seagate, and Micron still trade at reasonable valuations relative to their earnings growth potential, suggesting further upside for these stocks in 2026 [5] Analyst Optimism - Wall Street analysts are optimistic about WDC and STX stocks due to ongoing investments in AI infrastructure, which will drive demand for their products [6] Western Digital's Growth Prospects - Western Digital is experiencing increased demand for its nearline hard drives used in data centers, with multi-year supply agreements locked in with major customers, enhancing visibility for future growth [7]