S&P 500: The Winners and Losers of February 2025
After a strong start to the year, with the S&P 500 gaining 2.7% in January, February turned negative, ending the month down 1.4%. More than half of the 255 companies in the index closed in the red, while the rest managed gains. In this article, we’ll break down the top and worst performers in the S&P 500 over the past month and explore the key factors behind their stock movements.
Top S&P 500 Performers in February
Among the top performers were Super Micro Computer Inc ($SMCI), Intel Corp ($INTC), Yum! Brands Inc ($YUM). Here’s a closer look at why each of these stocks stood out in February:
Super Micro Computer ($SMCI) +45.37%
In February, Super Micro Computer emerged as the top performer in the S&P 500, with its stock price surging by 45.37%. This increase was primarily driven by two pivotal developments:
Resolution of Financial Reporting Issues
Previously, SMCI faced challenges due to delayed financial reports and allegations of accounting irregularities, raising concerns about potential delisting from the Nasdaq Stock Exchange. However, on February 25, 2025, the company successfully filed its overdue annual report for fiscal year 2024 and quarterly reports for the first two quarters of fiscal year 2025, just before the Nasdaq’s deadline. This timely action alleviated investor concerns, resulting in a significant surge in the stock price.
Strong Earnings and AI Product Advancements
The filed reports revealed that the company’s sales had more than doubled to $14.99 billion, driven by increased demand for AI products. Furthermore, SMCI projected substantial revenue growth, forecasting revenues potentially reaching $40 billion by fiscal year 2026. Additionally, SMCI announced that it had achieved full production of its rack-scale servers based on NVIDIA’s next-generation Blackwell AI technology.
These developments collectively led to the notable increase in SMCI’s stock price during February 2025.
Intel Corp ($INTC) +22.13%
Intel’s stock has long lagged behind, missing out on the AI-driven boom that lifted many of its competitors. However, this month, speculation about the company’s future has reignited investor optimism. Additionally, the Trump administration’s stance on domestic chip production has further bolstered confidence in the stock. Intel ended February with a 22% gain, making it the second-best performer in the S&P 500.
Increased AI Chip Manufacturing in the U.S.
One of the key drivers behind Intel’s stock rally is its growing investment in U.S.-based foundry operations. While the division struggled last year, recent developments indicate a turnaround. U.S. Vice President J.D. Vance has emphasized the importance of domestic AI chip design and production, citing national security and intellectual property concerns. His stance suggests potential regulatory measures, such as tariffs, to incentivize domestic semiconductor manufacturing. Such policies could benefit Intel by driving more business to its foundry unit as companies seek U.S.-based suppliers to avoid additional costs.
Market Speculation
In early February, Baird analyst Tristan Gerra reported that Intel was in talks with TSMC regarding a potential U.S. chipmaking partnership. The deal could involve TSMC sending engineers to Intel’s foundry operations and potentially forming a joint entity that might qualify for U.S. government funding under the CHIPS Act.
More recently, The Wall Street Journal reported that Intel’s rivals, Taiwan Semiconductor Manufacturing Co. and Broadcom, are each exploring potential deals that could result in splitting the American chipmaking giant into separate entities. These ongoing discussions and policy shifts have fueled renewed interest in Intel’s future, pushing the stock into focus for investors.
Yum! Brands Inc ($YUM) +19.82%
In February, Yum! Brands, the parent company of Taco Bell, KFC, and Pizza Hut, experienced a significant stock price increase of 19.82%. This surge was driven by several key factors, including strong earnings reports, the introduction of Byte by Yum!, a SaaS AI-driven tool, and strategic leadership changes.
Strong Earnings Report
On February 6, 2025, Yum! Brands reported fourth-quarter earnings that exceeded Wall Street expectations. The company posted quarterly revenue of $2.36 billion, slightly above the projected $2.35 billion, and an adjusted earnings per share (EPS) of $1.61, edging past the forecasted $1.60. The stronger-than-expected results bolstered investor confidence, driving the stock higher.
Introducing Byte by Yum!: An AI-Driven SaaS Solution
Yum! Brands unveiled Byte by Yum!, a suite of AI-powered software-as-a-service (SaaS) tools designed to optimize restaurant operations. The platform integrates online and mobile ordering, point-of-sale systems, kitchen and delivery logistics, menu management, inventory tracking, and workforce management. This strategic launch positions Yum! to stay competitive in the evolving fast-food landscape, further boosting investor optimism.
Leadership Changes and Strategic Direction
Yum! Brands announced the appointment of Scott Mezvinsky as the new Division CEO of KFC, signaling a strategic shift for the company.
Worst S&P 500 Performers in February
Among the top losers in the S&P 500 were FMC Corp ($FMC), West Pharmaceutical Services Inc ($WST), and Celanese Corp ($CE). Here’s a breakdown of the factors that contributed to their downturn:
FMC Corp ($FMC) -33.85%
FMC Corp, a chemical manufacturing company, saw its stock plunge 33.85% in February, making it the worst-performing S&P 500 stock for the month. The sharpest decline occurred the day after its earnings announcement, with shares crashing over 33% in a single session as investors reacted negatively to the results.
Disappointing Earnings
FMC reported a 74% drop in full-year net income, falling to $342 million, while revenue declined 5% to $4.25 billion. The fourth quarter was particularly weak, as the company posted a $16 million net loss, reversing a profit from the same period in 2023. However, quarterly revenue grew 7% year-over-year to $1.22 billion.
For 2025, FMC issued a cautious revenue forecast, expecting between $4.15 billion and $4.35 billion, roughly in line with 2024.
FMC Chairman and CEO Pierre Brondeau attributed the weak performance to lower-than-expected volume growth, as customers significantly reduced inventory levels. Additionally, foreign exchange fluctuations further pressured results.
West Pharmaceutical Services Inc ($WST) -31.97%
West Pharmaceutical Services, a key player in pharmaceutical packaging and delivery systems, saw a sharp decline in February. $WST shares plunged 38% following its earnings release, driven by disappointing guidance for 2025.
Weak Guidance
West Pharmaceutical’s earnings fell short of investor expectations, particularly in its 2025 outlook. The company projected EPS between $6.00 and $6.20, well below the consensus estimate of $7.43. Revenue guidance for 2025 came in at $2.875 billion to $2.905 billion, slightly under the $3.0 billion consensus forecast.
The company’s revenues and order book remain under pressure as biotech clients continue depleting pandemic-era inventory stockpiles, leading to weaker demand. This slowdown has weighed on West Pharma’s growth outlook, contributing to the stock’s steep decline.
Celanese Corp ($CE) -28.29%
Celanese Corp, known for its high-performance polymers and advanced materials, saw its stock decline 28% in February. Company shares dropped mainly following its full-year 2024 and Q4 earnings release. The chemical manufacturer reported significant losses with full-year GAAP diluted loss per share of $13.86, compared to earnings of $17.92 per share in 2023.
Key factors driving the decline included $2.0 billion in “Certain Items,” primarily non-cash asset impairment charges, including a $1.5 billion goodwill impairment in the Engineered Materials segment. This division posted a Q4 operating loss of $1.508 billion, reflecting severe challenges in automotive and industrial markets.
Overall company net sales decreased 6% for the year to $10.3 billion, while free cash flow fell to $498 million from $1.320 billion in 2023. Management provided modest guidance for Q1 2025, projecting earnings between $0.25 and $0.50 per share.
Newly appointed CEO Scott Richardson acknowledged persistent market weakness but emphasized ongoing cost reduction initiatives and strategic adjustments to improve performance despite challenging demand conditions.
This article is for informational purposes only and is not investment advice or a solicitation to buy or sell securities. The content is based on publicly available information and reflects the author’s opinions as of the publication date, which may change without notice. All investments carry inherent risks, including the potential loss of principal, and past performance is not indicative of future results. Readers should conduct their own research or consult a financial advisor before making investment decisions. BBAE holds no position in the securities mentioned, nor are they compensated by the companies mentioned.
