TLDR
- Sandisk surged 168% in Q1 2025, its best quarter ever, and is up 1,220% over the past 12 months
- The Technology Select Sector SPDR ETF fell 7.90% in Q1, worse than the broader S&P 500’s 4.81% drop
- AppLovin was the biggest tech loser, down 44.78%, followed by Workday, Fair Isaac, Gartner, and Intuit
- AI adoption is rising — about 75% of U.S. consumers use it personally, and 72% use it at work
- Analysts are split: some see the tech selloff as a buying opportunity, others warn of AI-driven job losses
Sandisk had a historic first quarter, rising 168% to become the top-performing tech stock in the S&P 500. The flash memory maker has now gained 1,220% over the past 12 months.
The broader tech sector wasn’t so lucky. The Technology Select Sector SPDR ETF dropped 7.90% in Q1, falling harder than the overall S&P 500, which lost 4.81% over the same period.
Several stocks posted strong gains despite the rough market. Lumentum Holdings rose 77.65%, Ciena climbed 56.07%, Corning gained 46.81%, and Western Digital was up 46.09% for the quarter.
On the other side, AppLovin was the quarter’s biggest loser among tech stocks, falling 44.78%. Workday fell 40.05%, Fair Isaac dropped 38.01%, Gartner lost 36.92%, and Intuit declined 35.23%.
The selloff was partly driven by fears that AI would make traditional software companies obsolete. Ray Wang of Constellation Research called this reaction overblown in a February CNBC interview.
Wang described it as an unwarranted “SaaS apocalypse,” saying strong software-as-a-service companies were being unfairly punished by the market.
A Morgan Stanley report from the same month showed how quickly AI has become a routine tool. Its survey of around 2,000 U.S. consumers found that 75% use AI for personal tasks and 72% use it at work, with nearly 20% using it daily.
AI Fears Drive the Selloff
The tech selloff was fueled in part by concerns that AI would cut into software demand. That view hit companies like Workday and Intuit hard, both of which offer workforce and financial software products.
Wedbush Securities analyst Dan Ives pushed back in March, saying the selloff was a buying opportunity — especially in cybersecurity and software sectors tied to the AI buildout.
Seeking Alpha analyst David Templeton also argued that AI is more likely to support jobs than eliminate them. He compared the current moment to prior industrial and tech revolutions, where new technology created more work than it displaced.
Sandisk’s Historic Run
Sandisk’s rise stands apart from the rest of the sector. The flash memory supplier benefited from strong demand tied to AI infrastructure and data storage needs.
Its 168% Q1 gain was the best single quarter in the company’s history. That came even as the broader market faced pressure from U.S.–Iran tensions and global economic uncertainty.
Lumentum and Ciena, both optical networking companies, also posted strong quarters as demand for AI data center connectivity grew.
Sandisk shares closed Q1 up 141.17% year-to-date according to one data source, with another reporting the Q1 gain alone at 168%, reflecting strong buying activity through March.
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