S&P 500’s 2025 Performance: AI-Driven Winners Outpace Lagging Sectors
The S&P 500 closed 2025 sharply divided between high-flying tech beneficiaries of AI spending and underperforming sectors. Chipmakers, data infrastructure providers, and cloud storage firms rode a tidal wave of corporate investment, with Microsoft, Amazon, Alphabet, and Meta collectively committing $440 billion to expand AI capabilities. Storage specialists like Sandisk, Western Digital, and Seagate became standout performers as demand for high-capacity data solutions surged.
New index additions including Robinhood and Carvana delivered triple-digit returns, buoyed by passive fund inflows after S&P inclusion. Yet the AI Gold rush created clear stratification—while infrastructure plays thrived, other entrants like Trade Desk failed to capitalize on the trend. The market's bifurcation reflects a new reality: capital concentrates around computational arms races, leaving traditional sectors struggling for relevance.
