Dec. 23, 2025 | 1:39
AI stocks are back in the driver’s seat on December 23, 2025, with investors leaning into a familiar year-end setup: easing rate anxiety, a rebound in mega-cap tech leadership, and a renewed focus on who can turn AI spending into durable cash flow—not just headlines.
But today’s AI stock story isn’t only about “Magnificent Seven” momentum. It’s increasingly about three hard constraints that could define performance into 2026:
- Policy and geopolitics (especially around AI chip exports to China)
- Power and infrastructure (electricity, grid capacity, and data-center buildouts)
- Balance sheets (how the AI capex boom gets financed—and what it means for risk)
Below is a comprehensive roundup of the major news, forecasts, and market analyses moving AI-linked stocks on 23.12.2025, along with what investors are watching next.
Market backdrop: AI stocks lead as Fed-cut expectations re-enter the chat
U.S. stocks pushed higher Tuesday as fresh economic data reinforced expectations for rate cuts next year, helping growth and AI-heavy sectors regain traction after last week’s valuation scare. By late morning in New York, the S&P 500 was inching closer to record highs, while AI and tech stocks extended gains for a fourth session, according to Reuters. [1]
The macro catalyst was a stronger third-quarter growth print (Reuters cited an annualized 4.3% GDP estimate), which investors weighed alongside mixed signals on consumer confidence and factory activity—keeping the “softening later” debate alive while the market remains laser-focused on the Fed path. [2]
Why it matters for AI stocks: the market still values many AI leaders as long-duration growth assets. Even small shifts in rate expectations can move multiples quickly—especially into thin holiday liquidity (U.S. markets close early Wednesday and are shut Thursday for Christmas, per Reuters). [3]
The headline AI-stock movers: “compute,” “cloud,” and “everything that powers them”
1) Nvidia and the AI chip complex: China policy is the catalyst investors can’t ignore
Nvidia (NVDA) was among the notable gainers in the day’s AI rebound, alongside other mega-cap AI beneficiaries. Reuters cited Nvidia rising while Alphabet, Amazon, and Broadcom also gained more than 1% in the session snapshot it reported. [4]
But the real Nvidia driver dominating today’s news cycle is China.
What changed: Nvidia is preparing to resume a pipeline for its H200 AI chips into China—under a Trump administration policy shift that allows sales with a 25% fee, subject to licensing and review. Reuters reported Nvidia told Chinese clients it aims to begin shipping H200 chips before the Lunar New Year holiday in mid-February 2026, initially fulfilling orders from existing stock. [5]
The forecast embedded in that report matters:
- Expected initial shipments: 5,000–10,000 chip modules, roughly 40,000–80,000 H200 chips, per Reuters sources. [6]
- Nvidia also signaled it may open orders for new H200 production capacity in Q2 2026, per one source. [7]
- Crucially, Reuters stressed uncertainty remains because Beijing has not yet approved purchases—meaning timing is still policy-dependent on both sides. [8]
Political pushback is escalating: Two senior Democratic lawmakers asked the U.S. Commerce Department to disclose details and any approvals tied to potential H200 sales to Chinese firms, pushing for transparency and briefings before approvals are issued, Reuters reported. [9]
What investors are pricing: A China channel reopening—at any scale—changes the near-term revenue conversation around “Hopper-era” inventory even as Nvidia transitions customers to newer platforms. But the market is also treating this as a reminder that policy can re-rate AI chip stocks overnight, in either direction.
2) U.S.–China chip policy: tariffs delayed, licensing in focus
In another major policy headline intersecting with semiconductor and AI supply chains, Reuters reported the U.S. administration said it will impose tariffs on Chinese semiconductor imports but delay the action until June 2027, keeping leverage while negotiating amid broader trade tensions. [10]
This matters for AI stocks because it affects:
- hardware cost structures and procurement planning,
- potential retaliation risk,
- and sentiment toward both U.S.-listed chip leaders and China’s domestic chip challengers.
Alphabet’s $4.75B “AI power” move: Intersect acquisition puts energy strategy on the balance sheet
If Nvidia is today’s “policy” story, Alphabet (GOOGL) is today’s “power constraint” story.
Alphabet announced a definitive agreement to acquire Intersect—a data-center and energy infrastructure developer—for $4.75 billion in cash plus assumption of debt, aiming to accelerate data-center and power capacity buildout in the U.S. [11]
Key deal details Alphabet disclosed:
- The transaction includes multiple gigawatts of energy and data center projects in development or under construction from Intersect’s partnership with Google. [12]
- Intersect will remain a separate brand led by CEO Sheldon Kimber, working closely with Google’s technical infrastructure team. [13]
- Intersect’s existing operating assets in Texas and certain California assets are excluded from the acquisition structure outlined in the announcement. [14]
- Expected close: first half of 2026, subject to customary conditions. [15]
Why it matters for AI stock investors: the market is increasingly treating power as a gating factor for AI growth. Owning (or co-developing) energy + data-center pipelines can reduce bottlenecks and de-risk delivery timelines for cloud AI products.
ServiceNow’s $7.75B Armis deal: “AI security” becomes a board-level theme
AI doesn’t just create new products—it expands the attack surface. That’s why one of today’s biggest enterprise-software stories is ServiceNow (NOW) agreeing to buy cybersecurity firm Armis for $7.75 billion in cash, in its largest acquisition to date, with closing expected in the second half of 2026. [16]
Market reaction was cautious: multiple outlets reported ServiceNow shares fell on the news, reflecting investor sensitivity to large deals and integration risk even when the strategic rationale is clear. [17]
What this signals for AI stocks: The market’s definition of “AI beneficiary” keeps widening beyond chips and cloud. Security platforms that plug into enterprise workflows—and use AI to detect and respond—are increasingly framed as essential infrastructure in an “agentic AI” world.
China AI: investors diversify as “US AI bubble” talk grows louder
One of the most important AI-stock narratives dated Dec. 23, 2025 is global capital rotation: investors looking for AI upside outside U.S. mega-caps.
Reuters reported global investors are increasing wagers on Chinese AI companies, seeking diversification amid growing concerns about lofty valuations on U.S.-listed AI stocks and Beijing’s push for tech self-reliance. The piece highlighted blockbuster mainland debuts by chipmakers Moore Threads and MetaX, and interest in China’s established tech giants like Alibaba, Baidu, and Tencent as “AI theme” exposure. [18]
Notably, Reuters cited valuation comparisons: the Nasdaq trading at 31 times earnings versus 24 for Hong Kong’s Hang Seng Tech index—an example of how “relative value” is influencing flows. [19]
The nuance investors should keep in mind: Reuters also reported skeptics warning that some newly listed Chinese chip firms lack valuation support and are “driven by hype,” underscoring the same speculation risk investors worry about in the U.S.—just in a different market wrapper. [20]
ByteDance’s $23B 2026 AI infrastructure plan: a demand signal for the entire supply chain
On the demand side, Reuters reported that TikTok owner ByteDance has made preliminary plans for 160 billion yuan (about $22.7–$23 billion) of capital expenditure in 2026 to build AI infrastructure, citing a Financial Times report that Reuters said it could not independently verify. [21]
Even though ByteDance isn’t publicly listed, this matters for “AI stocks” because:
- it reinforces the idea that AI compute demand remains global and competitive,
- it shapes expectations for chip supply (and substitution strategies),
- and it can influence sentiment around China tech platforms and hardware enablers.
The underappreciated AI trade: power producers and the return of “peaker plants”
A major, market-moving AI infrastructure analysis published today by Reuters focused on electricity—specifically, how AI data centers are straining the grid enough to keep older fossil-fueled “peaker” plants running longer than planned.
Reuters reported that in PJM Interconnection—the largest U.S. power market—data-center demand is pushing prices higher and contributing to decisions to delay retirements of plants that were slated to shut down, including peaker units at NRG Energy’s Fisk site in Chicago. [22]
Reuters described:
- A Reuters analysis of filings showing many planned retirements in PJM were postponed or canceled this year, with many being peaker units. [23]
- Capacity prices in PJM having surged sharply (Reuters cited an “over 800%” increase in prices paid to suppliers in PJM during the summer compared with a year earlier in its analysis). [24]
- The tension between grid reliability needs and environmental concerns, especially in communities near these plants. [25]
Why AI stock investors should care: AI winners may include not only chipmakers and cloud platforms, but also the firms that control dispatchable power, transmission, and grid services—because the AI boom is now a physical-infrastructure story.
Semiconductor forecasts: Citi’s “left-field” pick highlights rotation within chips
Not every AI-semiconductor conversation is about GPUs. Citi’s Christopher Danely named Microchip Technology (MCHP) as Citi’s top semiconductor pick, expecting an analog rebound in 2026, while still favoring AI-linked leaders such as Nvidia, Broadcom, and Micron—according to an Investors.com report dated Dec. 23. [26]
This fits a broader end-of-year positioning theme: investors who already rode “pure AI” are increasingly looking for second-order beneficiaries (analog, power management, networking, memory, and industrial supply chains) that could benefit if the AI buildout persists into 2026.
The financing forecast: bond markets brace for AI’s next bill
One of the clearest “2026 forecast” datapoints published today comes from Bloomberg: companies across the U.S. and Europe are preparing for what could be a record year of high-grade bond issuance next year, and Morgan Stanley strategists predict more than $2 trillion in U.S. investment-grade debt sales in 2026—driven by AI expansion projects, refinancing needs, and acquisition financing. [27]
For equity investors, this matters because financing conditions can shape:
- how aggressively hyperscalers sustain capex,
- whether AI infrastructure projects get delayed,
- and how markets price the risk of “AI overbuild” versus “AI under-supply.”
What to watch next: the 2026 AI stock playbook is being written now
As AI stocks head into the final trading sessions of 2025, today’s news flow suggests investors are organizing the AI theme into a more mature checklist—less hype, more constraints:
1) “Policy alpha” is back
Expect AI chip stocks to react not just to earnings, but to:
- licensing approvals/denials,
- tariff timelines,
- and diplomatic signals that change the addressable market (especially China). [28]
2) Energy is becoming a competitive moat
Alphabet’s Intersect deal is a signal that securing power is now strategic, not operational. Watch for more moves linking cloud providers to dedicated generation and grid solutions. [29]
3) M&A is returning—alongside investor skepticism
ServiceNow’s Armis acquisition shows AI-era spending isn’t only capex; it’s also platform consolidation. The market’s lukewarm reaction underscores a simple reality: investors want AI growth, but they increasingly demand discipline and integration clarity. [30]
4) The AI opportunity set is global, but so is the bubble risk
Reuters’ reporting on flows into Chinese AI underscores geographic diversification as both a risk-management tool and a return opportunity—while also highlighting that speculative pricing can show up anywhere. [31]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. abc.xyz, 12. abc.xyz, 13. abc.xyz, 14. abc.xyz, 15. abc.xyz, 16. www.barrons.com, 17. www.barrons.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.reuters.com, 26. www.investors.com, 27. www.bloomberg.com, 28. www.reuters.com, 29. abc.xyz, 30. www.barrons.com, 31. www.reuters.com
