Updated: Dec. 18, 2025 (4:15 PM EST)
AI stocks ended Thursday with a sharp rebound after a bruising stretch that revived “AI bubble” fears across semiconductors and mega-cap tech. The day’s tone shift was driven by two things investors care about most right now: a cooler-than-expected inflation update (supportive for growth-stock valuations) and a blockbuster outlook from Micron that reinforced a simple message—AI infrastructure spending is still accelerating, and the supply chain is still tight. [1]
By the close, Wall Street’s tech-heavy leadership reasserted itself. The S&P 500 rose 0.78% to 6,773.91, the Nasdaq Composite gained 1.37% to 23,004.92, and the Dow added 0.14% to 47,955.33, according to Reuters’ preliminary close. [2]
Market snapshot: the “AI trade” steadies—led by chips and mega-cap platforms
Thursday’s bounce was broad, but AI-linked names did the heavy lifting. As of the post-close print, key AI bellwethers and adjacent beneficiaries were higher on the day, including Nvidia, Microsoft, Alphabet, Amazon, Broadcom, AMD, Oracle, Palantir, Meta—and especially Micron.
Micron’s move mattered for more than its own ticker: memory—especially high-bandwidth memory (HBM)—has become a gating factor for how fast GPU clusters can ship, ramp, and monetize. That’s why a memory-company forecast can now swing the entire AI complex in a single session. [3]
The macro catalyst: inflation data cooled—and that’s gasoline for high-multiple AI stocks
Investors also had a macro “green light.” Reuters reported that U.S. consumer prices rose less than expected in the year to November, with the CPI running at 2.7% year-over-year versus economists’ 3.1% forecast—data that helped Treasury yields ease and made it easier for the market to pay up for long-duration growth stocks again. [4]
There was a notable caveat: Reuters also flagged that the inflation report was affected by collection/release disruptions tied to the federal government shutdown, adding uncertainty to month-to-month interpretation even as the annual number looked friendlier. [5]
Micron’s blowout outlook: the HBM shortage is a feature, not a bug—for pricing power
Micron’s update was the day’s most important AI-stock catalyst.
Reuters reported Micron surged after issuing a much stronger-than-expected profit forecast, pointing to soaring prices and tight supply for HBM—one of the most critical inputs for AI servers. CEO Sanjay Mehrotra said supply tightness could extend beyond 2026, and the company signaled it may only be able to satisfy a portion of demand from major customers. [6]
Barron’s detailed the scale of the beat: Micron reported EPS of $4.78 versus $3.96 expected and revenue of $13.6 billion versus $12.9 billion expected, while guiding the next quarter’s revenue midpoint to $18.7 billion—well ahead of consensus around $14.3 billion. [7]
And the “forecast” piece matters for AI investors: Micron’s management and analysts are increasingly treating memory as a multi-year AI infrastructure cycle, not a short swing. Barron’s cited Micron’s view that the HBM market could grow from about $35 billion in 2025 to $100 billion by 2028—an aggressive trajectory that, if realized, keeps the entire AI hardware stack in expansion mode. [8]
Where the stock landed: Micron finished higher on the day at roughly $248.46 (+10.24%).
Why Micron lifted Nvidia, AMD, Broadcom (and the whole chip complex)
In 2025’s AI market, Nvidia doesn’t trade only on Nvidia—it trades on evidence that hyperscalers and model builders are still buying the whole rack: GPUs, networking, memory, and power.
Barron’s wrote that Nvidia gained after Micron’s results reassured investors about continued AI investment, while also underscoring that HBM supply remains a limiting factor. [9]
Where major AI chip stocks ended: Nvidia traded around $174.00 (+1.79%), AMD around $201.00 (+1.48%), and Broadcom around $329.71 (+1.13%).
Reuters also pointed to a broader chip rebound, noting the Philadelphia SE Semiconductor Index rose as memory names rallied alongside Micron. [10]
The overhang that sparked the selloff: AI infrastructure is colliding with financing—and power
The rebound doesn’t erase what caused the jitters in the first place: the AI buildout is expensive, debt-sensitive, and increasingly constrained by physical infrastructure (electricity, sites, grid interconnects).
A Reuters report on the prior session described how “AI funding jitters” hit tech stocks after concerns about Oracle-linked funding plans for a major AI data center project. [11]
On Dec. 18, however, Oracle shares steadied and ended higher around $180.00 (+0.86%).
And in a sign of how central power has become to the AI stock narrative, Michigan regulators approved DTE Energy’s special contracts tied to a large data center project described as an Oracle and OpenAI facility planned south of Ann Arbor—reported at roughly $7 billion and 1.4 gigawatts. Planet Detroit reported the approval came with conditions aimed at preventing costs from shifting onto other utility customers, but also drew sharp criticism from Michigan’s attorney general and other groups. [12]
Bloomberg also reported Oracle and OpenAI secured Michigan approval to power a new data center project—another reminder that data-center permitting and electricity procurement are now market-moving variables for AI stocks, not boring back-office details. [13]
OpenAI’s valuation talk: bullish for demand, sobering for capital intensity
Another headline shaping the AI stock conversation today wasn’t about a public company at all—it was about the private company at the center of generative AI.
Reuters reported OpenAI held preliminary talks with investors about raising funds at a valuation of around $750 billion, with the potential to raise as much as $100 billion. Reuters also noted the report implied a jump from a reported $500 billion valuation in October and reiterated its prior reporting that OpenAI has been laying groundwork for a potential IPO, possibly filing as early as the second half of 2026. [14]
For AI stocks, this is a two-sided signal:
- Bullish: a mega-round implies continued urgency to buy compute—supportive for Nvidia and the broader AI hardware supply chain, and for infrastructure partners. [15]
- Cautionary: it highlights how much capital the frontier-model race is consuming, reinforcing investor sensitivity to ROI and funding structures. [16]
Washington enters the chat: DOE’s “Genesis Mission” pulls in Big Tech and chip leaders
In another late-day catalyst, Reuters reported the U.S. Department of Energy signed agreements with 24 organizations—including Microsoft, Google, Nvidia, Amazon Web Services, IBM, Intel, Oracle, and OpenAI—to advance what DOE calls the “Genesis Mission,” aimed at using AI to accelerate scientific research and strengthen energy and security capabilities. [17]
For investors, this matters less as near-term revenue and more as policy validation: federal agencies are formalizing AI partnerships in areas like nuclear energy, robotics, supply chains, and advanced computing—areas that can expand demand for cloud, chips, and specialized enterprise software over time. [18]
AI “monetization check”: Accenture beat on AI demand—but the stock still slid
Thursday also brought a telling read-through from the services layer of the AI economy.
Reuters reported Accenture beat estimates for first-quarter revenue (about $18.74 billion vs. $18.52 billion expected), driven by strong demand for AI-powered IT services. The company highlighted heavy AI investment and partnerships with leading AI startups, while also noting weaker public-sector demand tied to U.S. federal spending cuts. [19]
Despite the beat, Accenture’s stock finished lower around $269.92 (-1.40%), underscoring a recurring 2025 theme: investors may reward AI exposure, but they’re also wary of margin pressure, pricing disruption, and whether AI shifts bargaining power away from traditional consulting and IT vendors. [20]
Apple’s AI forecast: Wall Street is already looking to 2026 catalysts
Even “AI stocks” in 2025 increasingly includes consumer platforms and devices—especially if AI features can drive upgrade cycles.
Investor’s Business Daily reported Morgan Stanley raised its Apple price target to $315, arguing Apple could move from AI laggard to leader in 2026 as it rolls out a revamped Siri in spring 2026 (potentially powered by Google’s Gemini), with Apple Intelligence potentially influencing iPhone replacement dynamics. [21]
Apple shares were little changed by the end of the session, around $272.14.
The global AI supply chain: Taiwan’s growth forecast rises—and China’s EUV push adds a new wrinkle
Two Asia-linked stories on Dec. 18 reinforced the idea that AI stocks are now inseparable from geopolitics and supply chains.
- Taiwan: Reuters reported Taiwan’s central bank raised its 2025 growth forecast sharply, citing an AI-driven export boom in advanced semiconductors—an ecosystem in which TSMC plays a central role. [22]
- China and EUV: Reuters also published a deep dive on a covert, state-backed Chinese effort to develop domestic extreme ultraviolet (EUV) lithography machines—technology central to advanced chip manufacturing and currently dominated by the West (notably ASML). While the prototype reportedly generated EUV light, it had not yet produced chips; timelines cited suggested meaningful capability could still be years away. [23]
In market terms, this combination supports a persistent “strategic premium” in the AI hardware stack—while also keeping export controls, industrial policy, and supply-chain resiliency firmly in the risk column. [24]
What matters next for AI stocks: the four signals investors will track into year-end
AI stocks can rally hard on a single session—but sustaining the move typically requires follow-through on fundamentals. Heading into the final stretch of 2025, investors are watching:
- HBM availability and pricing power (Micron’s thesis): supply tightness can boost margins, but prolonged shortages can cap shipment growth for the whole server stack. [25]
- Capex discipline vs. capex acceleration (hyperscalers and model builders): the market is rewarding proof of demand while punishing any hint that the spending curve is outpacing monetization. [26]
- Data-center financing and power constraints (Oracle/OpenAI and beyond): approvals, power contracts, and funding structures are now material catalysts. [27]
- Rate expectations (the macro overlay): softer inflation and lower yields can expand valuation multiples—especially for the highest-growth AI narratives. [28]
Bottom line: AI stocks got a relief rally—but the debate isn’t over
Thursday’s action showed investors still want exposure to the AI buildout—particularly where the demand signals are concrete (chips, memory, cloud usage) and where macro conditions ease financial pressure. [29]
But the same day’s headlines also made clear why volatility remains the default setting: the AI boom is simultaneously a productivity story and a capital-intensity story, and markets are recalibrating what “good news” looks like when infrastructure, financing, and supply constraints are part of the equation. [30]
Not investment advice. Markets move quickly; consider company filings, risk factors, and your own time horizon before making decisions.
References
1. www.tradingview.com, 2. www.tradingview.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.barrons.com, 8. www.barrons.com, 9. www.barrons.com, 10. www.reuters.com, 11. www.reuters.com, 12. planetdetroit.org, 13. www.bloomberg.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.investors.com, 22. www.reuters.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.reuters.com, 26. www.tradingview.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.tradingview.com, 30. www.reuters.com
