Nvidia Drives Market Surge While Meta Invests in AI

On December 24, 2025, the S&P 500 reached a new record high during a short Christmas Eve trading session, primarily driven by strong investor interest in artificial intelligence. Large technology companies, including Nvidia, Meta, Microsoft, Intel, and Snowflake, are leading this market surge. Experts anticipate continued robust earnings growth and significant spending on AI infrastructure to fuel the market into 2026, with hopes for further Federal Reserve rate cuts also contributing to optimism. Despite the market's positive momentum, geopolitical tensions introduce some uncertainty. The U.S. plans to impose tariffs on Chinese semiconductor imports, though delayed until mid-2027, have drawn public opposition and warnings of countermeasures from China. Meanwhile, the demand for AI infrastructure components is soaring. Companies like Lumentum, Western Digital, and Micron are seeing substantial gains, with Lumentum's stock jumping 361 percent and Micron reporting its memory chips for AI are "more than sold out," highlighting the broad impact of AI beyond just chip designers. In the enterprise AI sector, Palantir Technologies demonstrates explosive revenue growth in its third quarter of 2025, with its Artificial Intelligence Platform (AIP) gaining widespread adoption. C3.ai also remains a key player, showing strong growth in its federal segment, though it still faces significant losses. Beyond traditional tech, companies like IREN (formerly Iris Energy) are strategically shifting, using their data centers for high-performance computing services to create more stable income streams, moving away from volatile cryptocurrency markets. The year 2025 has seen massive funding rounds for leading AI companies, underscoring strong investor confidence. OpenAI secured $40 billion, reaching a $300 billion valuation, while Elon Musk's xAI raised $20 billion. Scale AI received $14.3 billion, with Meta becoming a key investor. Dell Technologies stands out as a safer AI infrastructure investment, expecting its AI server revenue to increase by 150 percent this year to $25 billion. Broadcom is also a top stock pick for 2026, recognized for its strong recurring revenue streams in the technology sector.

Key Takeaways

• The S&P 500 hit a new record high on December 24, 2025, with AI stocks like Nvidia, Microsoft, Intel, and Meta leading the market surge.
• The U.S. plans to impose tariffs on Chinese semiconductor imports, delayed until mid-2027, are a source of geopolitical tension and potential countermeasures from China.
• AI infrastructure companies are experiencing significant growth, with Lumentum's stock jumping 361 percent and Micron's stock rising 228 percent in 2025 due to high demand for AI components.
• Major AI companies secured substantial funding in 2025, including OpenAI with $40 billion, xAI with $20 billion, and Scale AI with $14.3 billion, with Meta becoming a key investor in Scale AI.
• Palantir Technologies reported explosive revenue growth in Q3 2025, indicating widespread adoption of its Artificial Intelligence Platform (AIP) in the enterprise market.
• C3.ai, a key player in enterprise AI, shows strong growth in its federal segment and through partnerships, despite facing significant losses and negative cash flow.
• IREN (formerly Iris Energy) saw its stock rise 18.5 percent to US$4.60 by pivoting its data centers to high-performance computing services for AI, aiming for more stable income.
• Dell Technologies is positioned as a safer AI infrastructure investment, holding 20 percent of the AI server market and projecting a 150 percent increase in AI server revenue to $25 billion this year.
• BigBear.ai faces risks despite high AI spending, with revenue dropping 7 percent over three years, though its acquisition of Ask Sage is expected to add $25 million in yearly revenue.
• Broadcom is identified as a top stock pick for 2026, recognized for its strong recurring revenue streams in the technology sector.

AI Stocks Face Chip Tariffs and Holiday Trading

On December 24, 2025, AI stocks like Nvidia, Meta, and ServiceNow are trading in a short Christmas Eve session. The S&P 500 recently hit a new record, with large tech companies leading the way. A major factor affecting AI stocks is the U.S. plan to impose tariffs on Chinese semiconductor imports, though these are delayed until mid-2027. China has publicly opposed these tariffs and warned of countermeasures. This geopolitical tension, along with thin holiday trading volume, creates a mix of optimism and uncertainty for investors.

S&P 500 Reaches Record High as AI Stocks Lead

On December 24, 2025, the S&P 500 hit a new record during a short Christmas Eve trading session. Investors are focusing on AI stocks like Nvidia, Microsoft, Intel, Snowflake, and ServiceNow. This market surge comes from strong interest in AI and tech, plus hopes for more Federal Reserve rate cuts in 2026. Experts predict continued strong earnings growth and AI infrastructure spending will drive the market in 2026. However, a key question for investors is whether the huge AI infrastructure investments will pay off quickly enough.

IREN Stock Jumps 18.5 Percent on AI Strategy

IREN, formerly Iris Energy, saw its stock price rise 18.5 percent to US$4.60 this past week. This surge happened as Bitcoin mining companies with AI exposure rebounded, with Bitcoin moving above US$90,000. IREN is successfully shifting its focus to artificial intelligence by using its data centers and energy resources for high-performance computing services. This move aims to create a more stable income stream, reducing its reliance on the volatile cryptocurrency market. Other Bitcoin miners like Riot Platforms and Marathon Digital Holdings are also exploring AI services, but IREN's focused approach is showing strong market success.

BigBear.ai Stock Faces Risk Despite AI Boom

BigBear.ai's stock faces potential risks, even as spending on artificial intelligence is very high. The company's revenue has dropped by 7 percent over the last three years and fell 20 percent in the third quarter. BigBear.ai hopes its recent acquisition of Ask Sage, a security-focused generative AI company, will turn things around. Ask Sage is used by many government teams and is expected to bring in $25 million in yearly revenue. However, acquisitions are risky, and BigBear.ai may need to issue more shares to fund future deals, which could hurt its stock value.

C3.ai and Palantir Compete in Enterprise AI Market

C3.ai and Palantir Technologies are key players in the enterprise AI market, helping businesses use data for decisions. C3.ai offers a pure-play AI platform with ready-made applications, showing strong growth in its federal segment and through partnerships. However, C3.ai still faces significant losses and negative cash flow. Palantir, on the other hand, focuses on deeply integrated software and long-term contracts, reporting explosive revenue growth in its third quarter of 2025. Palantir's Artificial Intelligence Platform is seen as production-ready, indicating widespread adoption by customers.

Top AI Companies Secure Billions in 2025 Funding

The year 2025 saw major funding rounds for leading artificial intelligence companies. OpenAI raised a massive $40 billion in March, reaching a $300 billion valuation. Elon Musk's xAI secured $20 billion in October for its AI technologies. Scale AI received $14.3 billion in June, with Meta becoming a key investor and acquiring a 49 percent stake. Databricks raised $5.25 billion in January, while Anthropic secured $3.5 billion in March and another $13 billion later. Other companies like Reflection AI and Thinking Machines also raised $2 billion each, highlighting strong investor confidence in the AI sector.

AI Infrastructure Stocks Soar Beyond Nvidia in 2025

In 2025, several AI infrastructure stocks saw huge gains, even outperforming Nvidia. Lumentum's stock jumped 361 percent, with 60 percent of its sales now coming from cloud and AI infrastructure. Western Digital, a hard disk drive maker, also saw significant growth, with revenue up 27 percent as data centers need more storage for AI. Memory chipmaker Micron's stock rose 228 percent, reporting strong sales and being "more than sold out" of its memory chips for AI. These companies, including Celestica and Seagate, provide essential components like memory, storage, and fiber-optic cables for the growing AI industry.

Dell Technologies Offers Safer AI Investment Than Nebius

Nebius Group stock surged 223 percent in 2025 due to high demand for AI data centers, but it now faces concerns. The company's stock has dropped recently, and it trades at a high valuation with significant debt, needing billions more for expansion. In contrast, Dell Technologies presents a more attractive and safer investment in AI infrastructure. Dell is a major player in the global server market, holding 20 percent of the fast-growing AI server market. The company expects its AI server revenue to increase by 150 percent this year, reaching $25 billion.

Broadcom Stock a Top Pick for AI Trade

Joseph Shaposhnik, a portfolio manager at Rainwater Equity, named Broadcom as one of his top stock picks for 2026. He believes Broadcom has "one of the great" recurring revenue streams in the technology sector. Shaposhnik discussed his expectations for the AI trade in 2026, considering factors like interest rates and the US economy. He also expects other S&P 500 companies, excluding the largest ones, to see strong returns next year.

Sources

• AI Stocks Today (Dec. 24, 2025): Nvidia, Meta, ServiceNow, and the Data-Center Boom Collide With Chip Tariffs and Holiday Trading
• AI Stocks Today (Dec. 24, 2025, 10:34 a.m. ET): Nvidia, Microsoft, Intel, Snowflake and ServiceNow in Focus as the S&P 500 Hits a Fresh Record
• IREN (IREN) Is Up 18.5% After AI-Focused Pivot Gains Traction Amid Bitcoin Miner Rebound
• Why BigBear.ai Stock Could Eventually Go to $0
• C3.ai and Palantir: Who Wins the Battle of Enterprise AI Stocks Now?
• These Were The Biggest Funding Rounds In AI In 2025
• These 5 infrastructure stocks have more than tripled this year on the AI trade
• Forget Nebius Group Stock: This Quiet AI Leader Looks Like the Smarter Buy Today
• AI trade: Broadcom has 'one of the great' recurring revenues in tech