Zaid

Now, the big thing to watch going forward here is obviously what happens with Iran and the war.

If there's a resolution soon, the Strait of Hormuz reopens, well, then oil prices could drop 20 to 30% pretty quickly, and energy stocks would come back down.

So the trade here is essentially a bet on how long this conflict lasts.

It's kind of like a hedge on the overall portfolio.

If this war drags on through the rest of the summer, then some analysts think that oil prices could go even higher, potentially $150 a barrel.

But if there's a de-escalation or a ceasefire soon, then you could see prices drop pretty quick.

So yeah, the energy sector was a big winner in Q1, but moving forward, it carries a lot of geopolitical risks.

Now let's talk about the best performing stock in the S&P 500 for Q1, which was Sandis.

Sandis stock has surged 148% in the first three months of the year.

And don't forget, Sandis was also the best performing stock in the S&P 500 for all of 2025 as well.

So that momentum from last year has carried over into this year.

This is an AI-related surge.

SanDisk makes NAND flash memory, which is the backbone of modern digital storage.

Every photo on your iPhone, every document on your laptop lives on NAND memory.

And right now there's a massive shortage of NAND memory.

Demand is surging right now, especially from AI data centers that need tons of storage, while supply has been constrained because memory manufacturers have shifted their focus from NAND memory to high bandwidth memory, which is needed for AI chips, and it's a more profitable business.

So there's an insane demand for NAND memory and a limited supply, which is sending prices through the roof.

And SanDisk has been one of the biggest beneficiaries of that.

In their most recent earnings report, their margins expanded to 65%, well ahead of the 49% that analysts were expecting.

And some analysts say that the supply constraint could last until 2028, which would mean that we're still in the early innings of this cycle.