The artificial intelligence sector saw significant activity at year-end 2025, marked by major acquisitions, investments, and shifting market dynamics. Meta Platforms acquired Singaporean AI startup Manus for an estimated $2 billion to $3 billion on December 30, 2025. This deal initially boosted Meta's stock, with the company planning to integrate Manus into its Meta AI products. Meanwhile, SoftBank completed a substantial $40 billion to $41 billion investment in OpenAI, and Elon Musk's xAI continued expanding its AI infrastructure. In the competitive AI chip market, Advanced Micro Devices (AMD) is positioning itself to challenge NVIDIA's dominance. AMD's stock saw a slight increase on December 31, 2025, and analysts like Morgan Stanley are optimistic, upgrading the stock with a $200 price target. AMD plans to release its MI300 AI accelerator chip in the second half of 2024, directly competing with NVIDIA's H100 chip. NVIDIA's stock experienced some fluctuations, slipping on one day but seeing a slight rise on another. Beyond the tech giants, other AI-focused companies made headlines. Insilico Medicine, an AI drug discovery firm, had a strong debut on the Hong Kong stock market on December 30, 2025, with shares jumping 24.7% after raising HK$2.3 billion in its IPO. Conversely, SoundHound AI's stock fell 0.7% on December 31, 2025, following insider share sales, despite the company having raised its 2025 revenue outlook to between $165 million and $180 million. BigBear.ai also saw its stock drop 3.1%. Even traditional industries are feeling the impact of AI demand. Caterpillar's stock is growing rapidly, driven by strong sales of generators for AI data centers, such as a Utah project planning to buy over 700 natural-gas generators. Looking ahead to 2026, tech analyst Dan Ives of Wedbush Securities named Microsoft, Apple, Tesla, Palantir, and CrowdStrike as his top AI stock picks. Ives believes Microsoft's AI growth potential is underestimated and sees Apple's large user base as a significant opportunity for AI expansion.
Key Takeaways
- Meta Platforms acquired Singaporean AI startup Manus for $2 billion to $3 billion on December 30, 2025, planning to integrate it into Meta AI.
- SoftBank completed a $40 billion to $41 billion investment in OpenAI.
- Advanced Micro Devices (AMD) plans to release its MI300 AI accelerator chip in the second half of 2024 to compete with NVIDIA's H100.
- Insilico Medicine, an AI drug discovery company, saw its shares jump 24.7% in its Hong Kong debut, raising HK$2.3 billion in its IPO.
- SoundHound AI's stock fell 0.7% after insider share sales, despite the company raising its 2025 revenue outlook to $165 million to $180 million.
- Caterpillar's stock is growing due to strong sales of generators for AI data centers, including a project buying over 700 natural-gas generators.
- Dan Ives of Wedbush Securities named Microsoft, Apple, Tesla, Palantir, and CrowdStrike as his top AI stock picks for 2026.
- Ives considers Microsoft's AI growth potential underestimated, expecting fiscal year 2026 to be a key turning point.
- Apple's large user base presents a major opportunity for AI expansion, according to Dan Ives.
- Brookfield announced Radiant, a new cloud business backed by a $10 billion AI fund, to lease AI chips to developers.
Meta buys AI startup Manus boosting stock
Meta Platforms acquired Manus, an AI startup from Singapore, for an estimated $2 billion to $3 billion on December 30, 2025. This deal helped Meta's stock rise, making communication services a strong sector. The S&P 500, Nasdaq, and Dow all saw slight drops during thin year-end trading. Meanwhile, Federal Reserve minutes showed disagreements about December's interest rate cut. Citigroup also reported a $1.2 billion loss from selling its Russian unit.
Meta buys AI firm Manus stock rises
Meta Platforms' stock increased on Tuesday after it announced the purchase of Manus, an AI startup from Singapore. This deal, valued between $2 billion and $3 billion, will help Meta improve products like Meta AI. The S&P 500, Nasdaq, and Dow all saw small declines, while Nvidia's stock slipped. Other major AI news included SoftBank's $40 billion investment in OpenAI and Elon Musk's xAI expanding its AI infrastructure. Federal Reserve minutes also revealed disagreements about the recent interest rate cut.
Nvidia and AMD stocks rise cautiously at year end
Nvidia and AMD stocks saw slight increases on Wednesday, December 31, 2025, while Microsoft, Broadcom, and Meta Platforms dipped. Brookfield announced a new cloud business, Radiant, backed by a $10 billion AI fund, to lease AI chips to developers. Meta confirmed its acquisition of AI startup Manus for $2 billion to $3 billion, planning to integrate it into Meta AI. Elon Musk's xAI also expanded its AI infrastructure, and SoftBank completed a $41 billion investment in OpenAI. Investors are now looking to January for new market catalysts and the Federal Reserve's meeting.
Insilico Medicine AI drug firm debuts strong in Hong Kong
Insilico Medicine, an AI drug discovery company, saw its shares jump 24.7% in its Hong Kong stock market debut on December 30, 2025. The company raised HK$2.3 billion in its IPO, reaching a market value of $2.1 billion. Founder Alex Zhavoronkov aims for Insilico to be a major source of innovative drugs, using AI to speed up drug discovery. Insilico plans to use the funds for research, developing new AI models, and expanding its robotic lab. Despite a recent revenue drop, the company has promising drug candidates and licensing deals, including Rentosertib for lung disease.
SoundHound AI stock drops after insider share sales
SoundHound AI stock fell 0.7% in premarket trading on December 31, 2025, dropping below $10 after insider share sales were disclosed. Several top executives, including CEO Keyvan Mohajer and CFO Nitesh Sharan, sold shares on December 22 to cover tax withholdings from vested stock units. Other officers and a director also sold shares. The company, which provides voice AI tools, had previously raised its 2025 revenue outlook to $165 million to $180 million. Investors are now watching if the stock stabilizes and if future company updates shift focus back to revenue growth.
AMD poised to challenge Nvidia in AI chip market
Advanced Micro Devices AMD is seen as a strong AI investment for 2026, expected to gain market share from NVIDIA. AMD plans to release its MI300 AI accelerator chip in the second half of 2024. This new chip will directly compete with NVIDIA's H100 chip, which currently leads the AI accelerator market. Analysts are positive about AMD's future, with Morgan Stanley upgrading the stock and setting a $200 price target. AMD has a history of competing well with larger companies and could become a major AI market player.
BigBearai stock drops 3.1 percent on Tuesday
BigBear.ai's stock price dropped 3.1% on Tuesday, continuing a 10.13% decline over the past five trading days. The artificial intelligence company, founded in 2018 and based in Columbia, Maryland, has a market value of $1.07 billion. BigBear.ai offers AI-powered decision intelligence solutions, including products like Ai-Mission applications. The company serves both government and commercial clients in sectors such as defense and intelligence.
Caterpillar stock rises on AI driven generator sales
Caterpillar's stock is growing rapidly, not mainly because of its traditional excavators, but due to strong sales of generators for AI data centers. These generators are powering the company's fastest-growing business segment. For example, a large data center project in Utah plans to buy over 700 natural-gas generators from Caterpillar to create its own electricity. This shows how the demand for AI infrastructure is boosting Caterpillar's business.
Top AI stocks for 2026 picked by tech bull Dan Ives
Dan Ives, a leading tech analyst at Wedbush Securities, has named his top artificial intelligence stock picks for 2026. Known for his positive outlook on technology, Ives believes certain companies will greatly benefit from the ongoing AI revolution. His analysis highlights firms at the forefront of AI development and integration across various industries. Ives expects significant market growth and profits for companies that effectively use AI, driven by rising demand and technological advancements.
Dan Ives names five top AI stocks for 2026
Dan Ives, a tech analyst from Wedbush Securities, has revealed his top five artificial intelligence stock picks for 2026. His list includes Microsoft, Apple, Tesla, Palantir, and CrowdStrike. Ives considers Microsoft his favorite large-cap tech stock, believing its AI growth potential is underestimated and that fiscal year 2026 will be a key turning point. He also sees Apple's large user base as a major chance for AI expansion and predicts a huge year for Tesla, potentially reaching a $2 trillion value.
Sources
- Meta’s Manus AI deal lifts META as S&P 500 slips in thin year-end trade; Fed minutes in focus
- AI stocks today: Meta rises on Manus buy as Nvidia slips and Fed minutes keep rates in focus
- AI stocks today: Nvidia, AMD tick higher as year-end trade turns cautious
- AI Drug Discovery Unicorn Insilico Medicine Jumps In Hong Kong Trading Debut
- SoundHound AI (SOUN) stock slips in premarket after insider sales disclosures
- Advanced Micro Devices Is the Most Compelling AI Trade for 2026
- BigBear.ai (NYSE:BBAI) Trading Down 3.1%
- Caterpillar’s Surging Stock Is Fueled by AI, Not Yellow Excavators
- The Best AI Names for 2026, According to Wall Street’s Most Outspoken Tech Bull
- Wall Street's most outspoken tech bull says these are his 5 top AI stocks for 2026
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