These Were the S&P 500's Best-Performing Stocks at the Halfway Mark of 2026. Can They Still Go Higher This Year?

The stock market has continued to perform well in 2026, despite seemingly high valuations for many stocks entering this year. As of the end of June, the S&P 500, which features the top 500 stocks on U.S. markets, was up 9% since the beginning of the year. And since 2023, it has now risen by 95%.

This year, tech stocks have once again dominated, with a heavy focus on memory and storage providers. The three best-performing stocks on the S&P 500 as of the halfway mark of 2026 were Sandisk (NASDAQ: SNDK), Micron Technology (NASDAQ: MU), and Intel (NASDAQ: INTC). Here's a look at how much they were up as of the halfway mark, and if they can still rise much higher in the second half.

Image source: Getty Images.

Sandisk

Shares of Sandisk were up a monstrous 858% as of the end of June, easily making it the hottest stock to own on the S&P 500. There's no mystery behind its success as Sandisk has been benefiting from incredible demand for the memory and storage products that it sells. Its valuation may also make it look enticing to tech investors, as it has a market cap of around $260 billion, which may not seem all that big compared to the big players in tech.

But while the business has been doing well, there has been some apprehension of late. The stock fell last week, perhaps due to concerns about its high valuation (it trades at around 60 times trailing earnings) and fears that, while there is a shortage of memory and storage products in the market right now, that shortage may inevitably end in the long run. And when that happens, Sandisk's stock could be due for a correction.

The company has been doing exceedingly well, but the question is whether this kind of performance is sustainable. In its most recent quarter, which ended on April 3, the company's revenue rose by 251%, and its gross profit margin was 78%, which was a huge improvement from just 23% in the same period a year ago.

Sandisk's stock may still rise if demand for memory remains strong, but I also believe that it may run out of room to rise a whole lot higher, given how much future growth is already priced in to its hefty valuation; it may be approaching a peak, if it hasn't already hit one.

Micron Technology

Another red-hot memory stock this year has been Micron Technology, whose valuation crossed the trillion-dollar mark amid its rally during the first six months. At the halfway mark, the stock was up just over 300%. While that's far behind Sandisk, it's a tremendous performance nonetheless.

At a $1.1 trillion valuation, Micron is now among the most valuable companies in the world, due to the robust demand in the tech sector for its memory and storage products. While it's similar to Sandisk, Micron's focus is on DRAM and high-bandwidth memory that's crucial for data centers. Thus, it's been a hot play related to the artificial intelligence (AI) revolution and the massive build-out taking place in the tech sector. It, too, is benefiting from higher prices and demand, enabling it to grow its top and bottom lines at impressive levels.

The expected growth is a big reason investors remain bullish on Micron; its forward price-to-earnings (P/E) multiple is just six, which is based on analyst expectations of how strong the company's earnings will be in the year ahead. For investors who remain optimistic about the future and AI spending continuing at high levels, a bullish case can be made for why Micron can continue to soar. But as with Sandisk, there has been some pullback recently as many investors have also begun to think twice about the stock.

I wouldn't be surprised if Micron's rally continues in the latter part of the year, but it may be running out of room to rise much higher given how hot it's been.

Intel

At around 280%, Intel's gains were slightly behind Micron at the halfway mark. Intel has struggled in the past, but investments from both Nvidia and the U.S. government have inspired many investors, giving them confidence that the business is on the right track.

While Intel continues to struggle with profitability, that hasn't weighed down the stock; during the first three months of the year, Intel incurred a net loss of $4.3 billion, largely a result of restructuring and other expenses. Meanwhile, the 16% revenue growth in its foundry business proved to be a positive catalyst for the stock.

At more than $600 billion in market cap, Intel's business has become significantly more valuable than it was a year ago, when its valuation was below $100 billion. But even based on analyst expectations of future growth, the stock is extremely pricey; it trades at a forward P/E multiple of 137. Intel could be due for a pullback in the second half.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.