Google Leads AI Growth While Amazon Boosts Infrastructure Spending

The artificial intelligence market continues its robust expansion, with the Crunchbase Unicorn Board's value nearing $7 trillion after adding $1.6 trillion in 2025, marking the second-biggest annual increase. This growth comes three years into the AI boom, prompting a significant reshuffle among top companies. However, investor focus is shifting from mere spending to tangible profits and long-term advantages, as evidenced by a sharp decline in Taiwan's AI-related stocks on December 15, 2025, following cautious outlooks from U.S. tech firms like Broadcom and Oracle. Bank of America identifies Alphabet, Google's parent company, as the top AI stock for future growth, highlighting its strong foundational AI models, custom silicon, enterprise cloud services, and broad consumer reach. Analysts predict AI could generate over $1 trillion in new industry revenue within five years, with Alphabet's Gemini model and Tensor processing units being key strengths. Gene Munster from Deepwater Asset Management forecasts a 50% increase in capital spending by major tech companies like Amazon and Microsoft for AI infrastructure in 2026. He also expects Apple to launch a new Siri by April 2026 and lead the Magnificent Seven in the first half of the year, while Tesla might miss delivery expectations despite having Robotaxi operations in five cities. Notably, Anthropic has risen to become the fourth most valuable company on the Unicorn Board. Beyond the tech giants, several smaller AI companies are poised for growth in 2026, including Calix Inc., Qualys Inc., Innodata Inc., Five9 Inc., and UiPath Inc., which offer specialized AI-integrated solutions from cloud platforms to cybersecurity and data engineering. In other developments, Avalon GloboCare Corp. acquired generative AI software company RPM Interactive on December 15, 2025, forming a new entity called Avalon Quantum AI, LLC, to leverage RPM's automated short-form video content platform. The demand for AI infrastructure is also impacting the storage market. Seagate Technology and Western Digital stocks saw substantial gains in 2025, rising 257% and 316% respectively, driven by the need for hard disk drives (HDDs) in AI data centers. However, these companies face potential challenges in 2026 as customers increasingly explore alternative NAND storage solutions like solid-state drives (SSDs) for their efficiency and speed. Meanwhile, New Jersey is boosting its AI ecosystem with a new $20 million AI Hub Fund, launched on December 15, 2025, by the New Jersey Economic Development Authority and CoreWeave, aiming to support innovative startups and foster job creation.

Key Takeaways

• The Crunchbase Unicorn Board's value reached nearly $7 trillion, adding $1.6 trillion in 2025, driven by the AI boom.
• Anthropic has become the fourth most valuable company on the Unicorn Board.
• Bank of America named Alphabet (Google) as the top AI stock for future growth, citing its foundational AI models and custom silicon.
• Gene Munster predicts a 50% increase in AI infrastructure capital spending by major tech companies like Amazon and Microsoft in 2026.
• Apple is expected to launch a new Siri by April 2026 and lead the Magnificent Seven in the first half of 2026, according to Gene Munster.
• Taiwan's AI-related stocks experienced a sharp decline on December 15, 2025, as markets shifted focus to AI profits and returns over spending.
• Seagate Technology and Western Digital stocks surged 257% and 316% respectively in 2025 due to HDD demand for AI data centers, but face challenges in 2026 from SSD adoption.
• New Jersey launched a $20 million AI Hub Fund on December 15, 2025, with NJEDA and CoreWeave each investing $10 million to support AI startups.
• Avalon GloboCare Corp. acquired generative AI software company RPM Interactive on December 15, 2025, and formed Avalon Quantum AI, LLC.
• Five small and mid-cap AI stocks to watch for 2026 include Calix Inc., Qualys Inc., Innodata Inc., Five9 Inc., and UiPath Inc.

Five AI Stocks to Watch for Big Growth in 2026

The AI market continues its strong growth in 2025, with major companies investing heavily in AI infrastructure. Experts predict AI spending will reach trillions by 2030. This article suggests five small and mid-cap stocks for potential growth in 2026: Calix Inc., Qualys Inc., Innodata Inc., Five9 Inc., and UiPath Inc. Calix Inc. offers AI-integrated cloud platforms for broadband providers like Lumen and Verizon. Qualys Inc. provides cloud cybersecurity solutions, using AI from acquisitions like Blue Hexagon, and serves clients such as IBM and Accenture.

Five Smaller AI Companies Poised for Growth in 2026

The AI revolution is driving significant growth, with strong demand and rising capital spending. This article highlights five emerging small and mid-cap AI stocks expected to perform well in 2026. Calix Inc. provides cloud services for broadband, while Qualys Inc. offers cloud cybersecurity. Innodata Inc. specializes in data engineering and AI solutions. Five9 Inc. integrates AI into cloud contact centers, and Pathward Financial Inc. uses AI to enhance its banking services.

Taiwan AI Stocks Fall as Global Tech Spending Concerns Grow

Taiwan's AI-related stocks experienced a sharp decline on December 15, 2025, as global tech shares faced a risk-off wave. The TAIEX index dropped 331.08 points to 27,866.94. TSMC, a major AI supply chain company, fell 2.03% to NT$1,450, with Hon Hai/Foxconn and ASE Technology Holding also weakening. This downturn happened because markets are now focusing on AI profits and returns, not just spending. U.S. tech companies like Broadcom and Oracle gave cautious outlooks, setting a negative tone for Asian markets.

Avalon GloboCare Buys AI Video Company RPM Interactive

On December 15, 2025, Avalon GloboCare Corp. acquired RPM Interactive, a generative AI software company. This all-stock deal is expected to help Avalon meet Nasdaq's minimum equity requirements. RPM Interactive created an automated AI platform that makes short-form video content. Following the acquisition, Avalon also created a new company called Avalon Quantum AI, LLC.

Bank of America Names Alphabet Top AI Stock for Future Growth

Bank of America believes Alphabet, Google's parent company, is the best stock for the next stage of artificial intelligence. Analysts say investors are now looking at how AI companies make money and their long-term advantages, not just how much they spend. Alphabet stands out due to its strong foundational AI models, custom silicon, enterprise cloud services, and wide consumer reach. BofA predicts AI could generate over $1 trillion in new revenue for the industry in the next five years. Alphabet's Gemini model and Tensor processing units are key strengths.

Jim Cramer's Trust Sells GE Vernova Shares After Big Rally

Jim Cramer's Charitable Trust sold 20 shares of GE Vernova at about $694 each to secure profits. The stock had recently surged 15.6% to a record high of $723 following a positive Investor Day meeting. During this meeting, GE Vernova's management shared strong order updates and raised its financial targets for 2028. Analysts like JPMorgan also increased their price targets for the company. The stock is up over 100% this year, and the Trust is taking a 61% gain on shares bought in May 2025.

Gene Munster Shares 11 Bold Tech Predictions for 2026

Gene Munster from Deepwater Asset Management released 11 predictions for the year 2026. He expects the Nasdaq to rise by 10% or more due to the ongoing AI boom, with small-cap tech stocks outperforming larger ones. Munster also predicts a 50% increase in capital spending by major tech companies like Amazon and Microsoft for AI infrastructure. He believes Apple will launch a new Siri by April 2026 and be the top Magnificent Seven stock in the first half of the year. Alphabet is predicted to lead for the full year, and Tesla might miss delivery expectations despite having Robotaxi operations in five cities.

AI Boom Drives Unicorn Board Value Near 7 Trillion Dollars

The Crunchbase Unicorn Board is now worth almost $7 trillion, with $1.6 trillion added in 2025, marking the second-biggest annual increase. This growth comes three years into the AI boom. The board saw a major reshuffle, with Anthropic becoming the fourth most valuable company. The number of decacorns, startups valued at $10 billion or more, grew from 70 to 82 this year, with 24 new additions. Many of these companies reached high valuations quickly, often in less than five years, thanks to the AI wave.

New Jersey Launches 20 Million Dollar AI Fund for Startups

On December 15, 2025, the New Jersey Economic Development Authority and CoreWeave announced a new $20 million AI Hub Fund. This fund will help innovative startups grow in New Jersey, with the NJEDA and CoreWeave each investing $10 million. Governor Phil Murphy stated this initiative will create jobs and boost the state's economy. The NJ AI Hub will manage the fund, and Plug and Play will serve as its venture capital partner, also running a 12-week accelerator program for AI startups.

AI Storage Stocks Soar in 2025 But Face 2026 Challenges

Seagate Technology and Western Digital stocks have seen huge gains in 2025, rising 257% and 316% respectively. This surge is due to high demand for their hard disk drives, or HDDs, which are crucial for AI data centers. However, these companies face potential challenges in 2026 as customers start looking for alternative storage solutions. Big tech firms are increasingly buying NAND storage, like solid-state drives (SSDs), which offer benefits such as smaller size, better power efficiency, and faster data access. While HDDs are cheaper, SSDs' overall advantages could impact the pricing power of Seagate and Western Digital.

Sources

• Buy 5 Emerging AI Stocks Before 2025 Ends With Solid Upside in 2026
• Buy 5 Emerging AI Stocks Before 2025 Ends With Solid Upside in 2026
• Taiwan AI Stocks Slide as “AI-Capex Trade” Cools: TSMC Drops 2% and TAIEX Breaks Below 28,000 (Dec. 15, 2025)
• Avalon GloboCare Acquires RPM Interactive, a Generative AI Software Company, in an All-Stock Transaction
• This is the best positioned stock for the next AI phase, BofA says By Investing.com
• We're booking some big profits in an AI data center energy play after the stock's big rally
• Gene Munster's 11 Predictions For 2026: AI Trade Continues, Small‑Cap Tech Outperforms, This Magnificent Seven Stock Leads - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)
• Hottest Deals In Tech Push Crunchbase Unicorn Board Toward $7T In Value
• NJEDA and CoreWeave Announce Creation of $20M AI Hub Fund to Support Innovative Startups 
• These Artificial Intelligence (AI) Stocks Are Up 257% and 316% So Far in 2025. Here's Why They Could Be a Bust in 2026.