Updated: December 14, 2025
Big Tech U.S. stocks head into the new week with two forces pulling in opposite directions: a still-booming AI infrastructure buildout—and a fresh wave of investor anxiety about whether the “AI trade” is getting ahead of itself.
Last week (Dec. 8–14) delivered a bit of everything: a high-profile call to rotate away from the “Magnificent Seven,” a sharp late-week pullback in tech and semiconductors, major new AI capex commitments from hyperscalers, and a rapidly evolving Nvidia-China story that is now entangled in both Beijing’s internal approvals and Washington’s political scrutiny. [1]
Below is a detailed, publication-ready roundup of the main market-moving news, forecasts, and analyses published between Dec. 8 and Dec. 14, 2025, plus what investors are watching in the days ahead.
The mood check: tech slipped, yields rose, and “AI bubble” talk returned
The week ended with investors rotating out of technology, as concerns around AI profitability and capital intensity resurfaced. On Friday (Dec. 12), the Nasdaq fell 1.69% and the S&P 500 fell 1.07%, with the Nasdaq logging its lowest close since Nov. 25. For the week, the S&P 500 slipped 0.63% and the Nasdaq declined 1.62%. [2]
What drove the risk-off tone into the close?
- Broadcom sank after warning on margin pressure tied to custom AI processors, reviving a familiar question: if AI demand is real, will AI profits be as extraordinary as the market has priced in? [3]
- Oracle’s higher-than-expected capex outlook added fuel to valuation worries, reinforcing the idea that the AI boom may require longer (and more expensive) buildout timelines than investors want to hear. [4]
- Higher Treasury yields added pressure, particularly after some Fed officials who opposed the latest rate cut voiced concern that inflation was still too high. [5]
Importantly, even in the midst of the wobble, Reuters’ analysis noted that many investors remain reluctant to call a top in AI—short sellers have shown limited appetite to scale aggressive bets against the biggest AI-linked names. [6]
A big rotation call: Yardeni cools on the “Magnificent Seven”
One of the most-talked-about strategy notes of the week came from Yardeni Research, which said it is no longer “overweight” the “Magnificent Seven,” ending a long bullish stance on mega-cap tech and recommending underweighting the seven and overweighting the other 493 S&P 500 stocks. The rationale: concentration risk is elevated, rivals may increasingly target Big Tech profit pools, and productivity/profitability could improve across the broader index. [7]
For the week ahead, this matters because it shapes positioning: if the market is already leaning into “broader leadership,” Big Tech could face more two-way trading—especially around macro data and interest rates.
AI infrastructure is still accelerating—especially outside the U.S.
Despite late-week “bubble” jitters, the AI capex drumbeat did not slow. If anything, the newsflow underscored that hyperscalers and their ecosystems are planning for years—not quarters.
Microsoft: $23B in new AI investments, with India at the center
Microsoft unveiled $23 billion in new AI investments, including $17.5 billion in India (starting in 2026) and more than C$7.5 billion in Canada over the next two years, expanding cloud capacity and partnerships (including with Cohere on Azure). [8]
Reuters also highlighted the scale of the spending cycle: big U.S. cloud providers are expected to spend more than $400 billion on AI this year building out data center capacity. [9]
Amazon: $35B+ planned for India by 2030
Amazon said it plans to invest more than $35 billion in India by 2030, aimed at expanding operations, boosting AI capabilities, and increasing exports—another data point reinforcing India’s growing importance as a cloud and AI hub. [10]
Alphabet (Google): AI infrastructure leadership and capex scale
Google appointed longtime executive Amin Vahdat as chief technologist for AI infrastructure, as it ramps spending on data centers and hardware; capital expenditures were expected to top $90 billion by year-end, per the report. [11]
For markets, the subtext is clear: the hyperscalers are doubling down on compute as the key competitive moat—yet the market is increasingly demanding proof that the monetization curve will follow the capex curve.
The data center power scramble: a quieter Big Tech tell
AI infrastructure isn’t just chips and servers—it’s electricity. One of the more underappreciated catalysts last week was a major utility-and-hyperscaler signal:
NextEra Energy expanded its partnership with Google Cloud, with the companies planning to develop new large-scale U.S. data center campuses built with new power plants. NextEra and Google already had 3.5 gigawatts of electricity generation in operation or contracted, according to Reuters. [12]
Reuters also reported that NextEra signed power purchase and storage agreements with Meta totaling over 2.5 gigawatts, with projects scheduled to come online between 2026 and 2028. [13]
This matters for Big Tech stocks because it reinforces two investment realities:
- AI buildout timelines are multi-year, and
- the bottlenecks are increasingly physical (power, grid interconnects, permitting), not just digital.
Nvidia’s H200-to-China story: demand surge, political pushback, and Beijing uncertainty
No Big Tech-related theme moved faster last week than the U.S.-China chip corridor—and Nvidia sat at the center.
The policy pivot
Reuters reported that the U.S. would permit exports of Nvidia’s H200 chips to China with a 25% fee on such sales, per a Trump post. [14]
Beijing may still restrict access
Even after the U.S. green light, Reuters cited an FT report that Beijing was set to limit access to the H200 and was discussing ways to permit only limited access—adding another layer of uncertainty for Nvidia’s China opportunity. [15]
Chinese tech demand is immediate—and large
Reuters reported that ByteDance and Alibaba asked Nvidia about buying H200 chips and were keen to place large orders if Beijing approves, though supply clarity remains a concern. [16]
In an unusual twist, Reuters noted that the change created a situation where older chips like the A100 and H100 could remain restricted while the H200 would not (in theory), highlighting how complex export-control mechanics can become. [17]
Grey-market reality
A separate Reuters review of tenders and academic papers found that H200 chips were already being supplied into China through grey-market channels, including to universities and entities tied to the military ecosystem. [18]
Nvidia weighs higher output—but approvals and capacity are constraints
Reuters then reported Nvidia told Chinese clients it was evaluating adding H200 production capacity after orders exceeded current output. Yet uncertainties remain: China’s government had not greenlit purchases, and officials discussed bundling H200 purchases with domestic chip requirements. [19]
Washington backlash
By Dec. 13, Reuters reported a U.S. lawmaker demanded details on the H200 decision and warned that approving sales of cutting-edge chips could undercut a strategic advantage. [20]
Week-ahead implication: Nvidia’s narrative could swing sharply on any incremental signals from Beijing (approval mechanics) and Washington (policy pushback). Even without earnings on the calendar, the stock can trade headline-to-headline.
Regulation and antitrust: Europe presses Big Tech, and AI becomes the new battleground
Meta: EU nod on ad changes to avoid daily fines
Meta won approval from EU antitrust regulators for changes to its “pay-or-consent” approach that reduce the use of personal data for targeted ads, helping it avoid daily fines, according to Reuters. [21]
Google: AI Overviews probe + potential fines next year
Reuters reported the EU launched an antitrust probe into Google’s use of online content for AI-generated summaries (“AI Overviews”) and YouTube content, with concerns about compensation for publishers and options to refuse. [22]
Separately, Reuters reported Google is expected to be fined next year for not doing enough to comply with EU rules against favoring its own services in search results, with fines potentially up to 10% of global annual turnover under DMA enforcement mechanics. [23]
Why it matters for stocks: For Alphabet and Meta, regulatory outcomes increasingly influence not only fines, but also product design, ad targeting efficiency, and potential “friction” that can show up in revenue growth and margins over time.
U.S. AI policy whiplash: federal preemption vs state rules
AI regulation became a top-tier political and market issue last week—not in abstract terms, but in ways that could directly change compliance burdens for Big Tech.
The executive order
On Dec. 11, the White House published an executive order titled “Ensuring a National Policy Framework for Artificial Intelligence.” [24]
Funding threats and enforcement posture
Reuters reported Trump threatened funding for states over AI regulations and pushed for a single national standard, arguing that multiple state regimes hamper industry growth; the order also aimed to “check” state laws viewed as most onerous until a national standard is in place. [25]
The executive order text itself references using federal program leverage—such as policy notices tied to broadband deployment funding—arguing that fragmented state AI rules could undermine national AI policy objectives. [26]
Pushback and political friction
Reporting over the weekend described pushback from prominent state leaders and internal political divisions, including California Governor Gavin Newsom’s criticism and broader debate over how much power states should retain in regulating AI. [27]
Big Tech relevance: A national standard could reduce a patchwork of compliance requirements (a long-standing industry ask), but legal challenges and political pushback could keep uncertainty elevated—especially for companies deploying consumer-facing AI products at scale.
“Delusional outputs”: state attorneys general raise new legal risk for AI chatbots
In another AI-related regulatory signal, Reuters reported a bipartisan group of state attorneys general sent a warning letter to 13 companies—naming Microsoft, Meta, Google, and Apple among them—arguing that chatbot “delusional outputs” could violate state laws. [28]
This story matters less for near-term revenue and more for the liability and governance narrative surrounding consumer AI tools—an area that can influence sentiment, enterprise adoption speed, and compliance costs.
Apple: Epic Games case reshapes App Store risk (again)
Apple secured a partial win in its long-running litigation with Epic Games, as the Ninth Circuit partly reversed aspects of sanctions against Apple but largely upheld the contempt finding and the injunction requiring Apple to allow developers to direct users to alternative payment methods. [29]
Reuters noted Apple had added restrictions including a 27% commission on purchases made outside the App Store within seven days of clicking a link (vs. a 30% commission inside the App Store). The appeals court said Apple should be able to charge a commission on linked-out purchases, but there should be limitations. [30]
Week-ahead implication: While there’s no immediate earnings catalyst, App Store policy is a structural margin issue—and the market tends to reprice the risk when court rulings clarify what Apple can (and cannot) charge.
Tesla: U.S. demand concerns return with November sales estimates
Reuters, citing Cox Automotive estimates provided exclusively, reported Tesla’s U.S. sales dropped to a near four-year low in November despite rolling out cheaper versions of key models. It also noted broader U.S. EV sales fell more than 41% in November, while Tesla’s market share rose to 56.7% from 43.1%. [31]
The report described the move to offer 0% financing on a Standard Model Y as a potential sign of weak demand and emphasized the need for fresher models amid rising competition. [32]
Week-ahead implication: Tesla’s stock can be sensitive to any incremental data points on deliveries, incentives, pricing, and consumer demand—especially as rates and auto affordability remain central macro variables.
Alphabet and the wearable AI push: smart glasses are back
Reuters reported Warby Parker and Google set a public 2026 launch timeline for AI-powered smart glasses tied to Android XR and Gemini, as Google pushes back into wearables. The report framed the space as increasingly competitive, with Meta’s smart glasses efforts and Apple’s Vision Pro shaping expectations. [33]
For Alphabet and Meta investors alike, the watch item is whether wearables can graduate from “cool demo” to a meaningful distribution channel for AI assistants—and, ultimately, new ad and commerce surfaces.
Week Ahead: what matters most for Big Tech stocks (Dec. 15–19, 2025)
1) A heavy macro slate after the Fed cut
Reuters’ “Week Ahead” noted that jobs data is due Tuesday and CPI Thursday, with reports arriving after the Fed’s quarter-point cut and after a data drought caused by the October government shutdown. [34]
Why Big Tech should care: mega-cap tech remains highly sensitive to real yields and rate expectations. If inflation re-accelerates or the labor market looks firmer than expected, yields can rise and pressure long-duration growth valuations. Conversely, weaker data can support rate-cut expectations and lift tech multiples—even if it raises recession debate. [35]
2) AI capex vs AI payoff: the market is getting stricter
Last week’s Oracle/Broadcom shock and the late-week tech selloff reinforced a key theme: investors still believe in AI, but they’re becoming more selective—especially around margins, timelines, and free cash flow. [36]
In that context, watch for:
- any new corporate commentary on capex discipline (Alphabet), [37]
- further mega-cap commitments that validate AI demand (Microsoft, Amazon), [38]
- and second-order constraints like power availability and grid buildout (data center power deals). [39]
3) Nvidia headlines (China approvals + Washington scrutiny)
The H200 story is now multi-dimensional: U.S. export policy, China’s approvals, supply constraints, potential domestic chip bundling, and U.S. political pushback. [40]
If you’re watching one Big Tech-adjacent stock for headline volatility, Nvidia is it.
4) Regulation remains a live wire
EU scrutiny of Google and Meta continued last week, and U.S. AI policy moved fast. In a week without major Big Tech earnings, regulatory headlines can still dictate direction, especially for Alphabet and Meta. [41]
Bottom line
Big Tech enters the new week with a market that still respects the AI thesis—but is less willing to pay “any price” for it. The near-term direction could hinge on macro data (jobs and inflation), while stock-specific volatility remains highest around Nvidia’s China chip narrative and ongoing regulatory developments across the U.S. and Europe. [42]
This article is for informational purposes only and does not constitute investment advice.
References
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