As of 5:02 p.m. ET on Wednesday, December 24, 2025, the “AI trade” is closing out a holiday-shortened session with fresh momentum — and a new set of questions investors can’t ignore.
On one hand, U.S. benchmarks pushed to new records during the early Christmas Eve close, a classic “Santa rally” setup supported by easing-rate expectations and renewed appetite for mega-cap tech and AI names. On the other hand, today’s biggest AI headlines aren’t just about chips and models anymore. They’re increasingly about dealmaking, data-center financing, capital-expenditure transparency, and regulatory pressure on how AI assistants get distributed to consumers. [1]
Below is a detailed, publication-ready roundup of the major AI stock news, forecasts, and market analyses published on 24.12.2025 — plus what they signal heading into 2026.
AI stocks lift the market into record territory — with rate-cut bets back in focus
By late morning in the U.S., the S&P 500 hit a fresh intraday record (6,920.88), its first in more than a month, as investors rotated back into heavyweight tech and AI names while leaning into expectations for additional Federal Reserve rate cuts in 2026. Reuters noted the index had slid as much as 5.7% in November from October highs amid bubble fears in AI-linked stocks, but regained traction after chipmaker Micron delivered a notably upbeat outlook last week. [2]
By the close of the early, low-volume Christmas Eve session, Reuters reported both the Dow and S&P 500 finishing at record highs, with trading volumes notably thinner than usual — exactly the kind of tape that can magnify moves in crowded themes like AI. [3]
And the calendar mattered today: markets shut early for Christmas Eve (and remained closed for Christmas Day), with the stock market closing at 1 p.m. ET and the bond market at 2 p.m. ET, according to Investopedia. [4]
Why this matters for AI investors: the year-end AI rally is happening alongside a shift in what investors are rewarding. The market isn’t just chasing “AI exposure” — it’s increasingly sorting companies by (1) who can monetize AI, (2) who can finance AI infrastructure responsibly, and (3) who can defend margins as compute costs evolve.
Nvidia’s reported $20 billion Groq deal becomes the day’s defining AI-chip headline
The biggest single-company AI shockwave of Dec. 24 landed late in the day: Reuters reported that Nvidia has agreed to buy AI chip startup Groq for $20 billion in cash, citing a CNBC report. Reuters added that the reported deal includes Groq’s assets but excludes its GroqCloud business, according to the CEO of a firm that led Groq’s latest financing round. Nvidia and Groq did not immediately respond to Reuters for comment. [5]
Groq, founded by Jonathan Ross, is positioned around high-performance AI inference chips — the part of the AI stack that runs trained models in production, where latency and cost efficiency often decide enterprise adoption. Reuters noted Groq’s valuation had more than doubled to $6.9 billion following a $750 million funding round in September, and that a $20 billion price tag would be Nvidia’s largest acquisition since Mellanox. [6]
What the market is likely to debate next
If the reported Nvidia–Groq deal holds up, it spotlights a key strategic battleground for AI stocks entering 2026:
- Inference is becoming as important as training. AI workloads are shifting from “build the biggest model” to “run the model everywhere,” which elevates chips, networking, and software optimized for serving.
- M&A is back as a growth lever. Today’s report lands amid broader expectations that tech deal activity remains strong into 2026, especially in AI and cybersecurity. [7]
- Regulators and customers will scrutinize platform consolidation. Nvidia already sits at the center of the AI compute stack; any major acquisition can raise questions about ecosystem control and pricing power.
Chips and hardware: Micron’s AI memory tailwind, Broadcom’s “AI bargain” case, and Intel’s foundry setback
Micron rides the AI infrastructure wave into a record close
AI isn’t only a GPU story. In the same Reuters session wrap that captured record index closes, Micron shares climbed 3.8% to finish at a closing record of $286.68, extending a move sparked by the company’s strong forecast the prior week. [8]
In the market narrative on Dec. 24, Micron effectively played the role of “AI bottleneck beneficiary”: memory (and specifically the high-bandwidth flavors used in accelerated compute) remains one of the key constraints in scaling AI workloads economically.
Broadcom stays on the short list for 2026 AI chip winners
A Nasdaq.com column published early today argued that three stocks could be “big winners again” in 2026 — Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing (TSMC) — highlighting Broadcom’s exposure to custom AI chips and TSMC’s leverage to demand for both GPUs and custom silicon. [9]
Separately, Barron’s reported that veteran tech investor Paul Wick named Broadcom among his top large-cap tech picks, emphasizing the durability of AI-driven demand and suggesting opportunities beyond the most crowded winners. [10]
Intel slides after a report tied to Nvidia’s manufacturing choices
Not every “AI-adjacent” semiconductor headline was bullish. A Barron’s stock movers recap said Intel fell after reports Nvidia chose not to use Intel’s chip manufacturing process — a notable datapoint because Intel’s foundry ambitions are a major part of its long-term equity story in an AI-led chip cycle. [11]
Enterprise AI software: UiPath’s index boost, Salesforce’s AI comeback thesis, and Snowflake’s rumored deal
While chips are still the “front page” of AI investing, Dec. 24 showed how quickly the spotlight is widening toward enterprise software and data platforms — especially as markets demand clearer AI monetization.
UiPath jumps on S&P MidCap 400 inclusion
UiPath delivered one of today’s cleanest “mechanical catalyst” moves: Investopedia reported the stock rose roughly 8% premarket after news it will join the S&P MidCap 400 before trading starts on Jan. 2, 2026. [12]
Barron’s framed UiPath as an “AI winner” getting a “big boost” from the index change — a dynamic that can create forced buying from index funds and ETFs. [13]
Meanwhile, MarketBeat (also dated Dec. 24) noted the stock “gapped up,” pointing to the index inclusion as the primary driver and citing analyst target increases (for example, Morgan Stanley and RBC raising price targets to $19 in recent notes). [14]
What to watch: after the index pop, investors typically refocus on fundamentals — especially whether AI-driven automation demand is accelerating in large, repeatable deployments rather than pilot programs.
Salesforce: “ready to emerge an AI winner,” per Barron’s
Barron’s made a detailed case that Salesforce is positioned for an AI narrative reversal, pointing to traction in its Agentforce offering and citing 330% year-over-year growth in annual recurring revenue for the platform (from a small base). Barron’s also highlighted improving margins and argued that valuation skepticism may be overdone if growth re-accelerates. [15]
Snowflake reportedly in talks to buy Observe for ~$1B
M&A rumors weren’t confined to chips. Investor’s Business Daily reported that Snowflake is in talks to acquire Observe for about $1 billion, potentially its largest deal yet, as data-platform vendors race to offer the tooling needed for AI agents and enterprise automation. IBD also noted Snowflake’s recent earnings strength and described a broader “AI acquisition spree” dynamic across the sector. [16]
AI-stock implication: software and data platforms are increasingly valued on whether they can become the “system of record” (and the orchestration layer) for enterprise AI agents — not just whether they can bolt a chatbot onto an existing product.
Reddit’s AI licensing narrative strengthens
Another under-the-radar AI stock angle surfaced in Barron’s coverage of Reddit: the publication said Reddit is generating more than $100 million annually from licensing deals with AI firms (including OpenAI and Google) and highlighted analyst optimism tied to both advertising momentum and AI-related product initiatives. [17]
New risks for AI stocks: capex scrutiny, off-balance-sheet AI debt, and a “black box” problem in infrastructure accounting
As much as today’s tape was bullish for AI equities, Dec. 24 also delivered multiple high-impact analyses that can’t be waved away as “noise.”
Wall Street’s 2026 outlook depends on AI spending — but returns must show up
In a Dec. 24 Reuters analysis, strategists argued that sustaining strong equity returns in 2026 will require (1) continued AI spending, (2) strong corporate earnings, and (3) a dovish Fed. Reuters cited forecasts for S&P 500 earnings growth above 15% in 2026 and noted expectations that earnings leadership may broaden beyond the “Magnificent Seven.” [18]
But Reuters also underscored the central risk: if markets lose confidence in the returns on guided AI capex — or if companies pull back — the upside case weakens materially. [19]
Investopedia echoed the optimism (with caution), reporting that Wall Street expects a modest 2026 gain for the S&P 500 while warning that risks are growing — particularly in overheated tech and AI pockets where valuations may be vulnerable to any growth disappointment. [20]
FT: Tech groups move $120B of AI data-center debt off balance sheets
A Financial Times report dated Dec. 24 said major tech-related groups — including Meta, xAI, Oracle, and CoreWeave — have shifted more than $120 billion in AI data-center debt off balance sheets using special purpose vehicles (SPVs), funded by large Wall Street firms. The FT framed this structure as a way to finance AI infrastructure while keeping reported credit metrics cleaner — but also as a potential source of hidden risk if AI demand or pricing falters. [21]
WSJ: AI construction costs are becoming an accounting “black box”
The Wall Street Journal highlighted how AI infrastructure spending can get buried inside broad “construction-in-progress” categories, limiting investor visibility into what is long-lived (buildings) versus what depreciates quickly (chips and specialized equipment). The thrust: investors want more granular disclosure, because depreciation schedules and obsolescence risk are very different for concrete versus compute. [22]
Why these two stories matter for AI stocks: the market’s next phase may hinge less on “AI excitement” and more on capital discipline and disclosure quality. Investors can tolerate massive AI spend — but they’ll increasingly demand clarity on how it’s financed and how quickly it becomes obsolete.
Regulation enters the AI distribution layer: Meta and WhatsApp in the spotlight
AI competition is not just about model quality — it’s also about distribution: who gets default placement inside the apps people use every day.
On Dec. 24, Reuters reported that Italy’s antitrust authority ordered Meta to suspend WhatsApp terms suspected of restricting rival AI chatbot providers, with Meta criticizing the decision and saying it plans to appeal. Reuters said the European Commission is running a parallel investigation and coordinating with Italian authorities. [23]
Investor’s Business Daily added that the dispute is tied to WhatsApp’s business API terms and rival chatbot access (including third-party assistants), with Meta arguing the API wasn’t designed for those integrations. [24]
Investor takeaway: if regulators force open distribution channels inside dominant messaging platforms, that could shape the economics of consumer AI assistants — and influence how investors value ecosystems that rely on default placement.
AI stock forecasts dated Dec. 24: where analysts see upside — and what they’re watching
Forecasts published today painted a market that’s optimistic, but more selective than it was earlier in the AI boom.
Nvidia: big upside targets still dominate the debate
A TipRanks article dated Dec. 24 reported that Evercore ISI analyst Mark Lipacis raised his Nvidia price target to $352 (from $261), implying 86% upside from the price level referenced in the piece, while acknowledging ongoing risks including China-related issues and macro variability in AI demand. [25]
At the same time, Investor’s Business Daily reported Nvidia was holding above key technical levels and discussed ongoing uncertainty around China-linked sales pathways for AI chips, framing export policy as a meaningful swing factor. [26]
Broadcom and TSMC remain “picks-and-shovels” favorites for 2026
Nasdaq.com (publishing a Motley Fool column at 6:20 a.m. EST on Dec. 24) reiterated the thesis that Broadcom’s custom-chip demand and TSMC’s foundry dominance position them as major beneficiaries if AI spending persists into 2026. [27]
Bottom line: Dec. 24 confirms the AI trade is evolving — from hype to balance sheets
The most important message from AI stocks today isn’t only that the rally is alive — it’s what kind of AI story the market is starting to price:
- M&A and platform strategy are back on the front page (Nvidia–Groq, Snowflake–Observe). [28]
- “AI winners” are broadening beyond GPUs into memory, enterprise automation, CRM, and data platforms (Micron, UiPath, Salesforce). [29]
- Financial structure and disclosure are becoming just as important as product announcements (FT on off-balance-sheet AI debt; WSJ on opaque AI infrastructure accounting). [30]
- Regulation is moving into AI distribution, not just privacy and content (Meta/WhatsApp and rival chatbots). [31]
As Wall Street looks toward 2026, the AI question is shifting from “Who has AI?” to “Who can prove returns on AI spending — and show investors the math clearly?” [32]
This article is for informational purposes only and does not constitute investment advice.
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.investopedia.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.barrons.com, 8. www.reuters.com, 9. www.nasdaq.com, 10. www.barrons.com, 11. www.barrons.com, 12. www.investopedia.com, 13. www.barrons.com, 14. www.marketbeat.com, 15. www.barrons.com, 16. www.investors.com, 17. www.barrons.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.investopedia.com, 21. www.ft.com, 22. www.wsj.com, 23. www.reuters.com, 24. www.investors.com, 25. www.tipranks.com, 26. www.investors.com, 27. www.nasdaq.com, 28. www.reuters.com, 29. www.reuters.com, 30. www.ft.com, 31. www.reuters.com, 32. www.reuters.com
