WSJ Tech News Briefing

Episode: TNB Tech Minute: AI Acceleration Could Help U.S. Stock Indexes Regain Ground In 2026
Host: Julie Chang, The Wall Street Journal
Date: December 31, 2025

Episode Overview

This “Tech Minute” episode unpacks how accelerating artificial intelligence (AI) innovation may drive U.S. stock indexes to recover and potentially outpace global markets by early 2026. With analysis and data on high-performing tech stocks, unexpected winners and losers, and the overarching influence of the U.S.-China AI race, this briefing paints a snapshot of the year's tectonic shifts in tech and finance.

Key Discussion Points & Insights

AI as a Catalyst for U.S. Market Leadership

• Kathleen Brooks (XT Director) Analysis:
  • U.S. stock indexes have lagged behind global counterparts despite tech giants’ growth, raising questions about justified valuations.
  • Quote:
    • “If AI is nearing a breakout phase, U.S. stocks could regain leadership in markets.” [00:21]
  • The potential watershed moment for AI could see U.S. markets overtake rivals as early as 2026.

Major Tech Stock Performances in 2025

Standout Winners

• Western Digital:
  • “The data storage stock has jumped over 280%, marking its best year ever and making it the S&P 500’s top gainer.” [00:33]
• Seagate Technology:
  • Shares soared roughly 218%.
• Micron Technology:
  • Shares jumped nearly 238% through today.

Drivers:

• Hard drive makers resurgent as investors bet on AI's insatiable demand for digital storage.
• The U.S.-China AI rivalry and a capital spending boom further fueled semiconductor and hardware stock rallies.
• AMD & Nvidia:
  • Both “were set for double figure percentage annual gains.” [00:53]

Major Losers

• Bitcoin Accumulation Company Strategy:
  • Suffered as “the Nasdaq composite's biggest loser, even after it took steps in December to insulate itself from the cryptocurrency sell-off.”
  • Shares dropped 47% through Tuesday. [01:03]
• IT Firm Gartner:
  • Plunged by 47%, “setting it up for its biggest retreat since the year 2000.” [01:19]
• Additional Pressures:
  • U.S. tariffs and AI-related disruption contributed to record declines for some firms according to Dow Jones Market Data.

Notable Quotes & Memorable Moments

• AI’s Potential Market Impact:
  • Kathleen Brooks: “If AI is nearing a breakout phase, U.S. Stocks could regain leadership in markets.” [00:21]
• Western Digital’s Performance:
  • Julie Chang: “The data storage stock has jumped over 280%, marking its best year ever…” [00:33]
• Harsh Year for Some:
  • Julie Chang: “Tariffs, AI related disruption, and more pummeled several companies in 2025 to the point that they had their worst annual performance in at least 20[years]…” [01:11]

Timestamps for Important Segments

• 00:18 – Kathleen Brooks’ outlook on AI and market leadership
• 00:33 – Top stock gainers: Western Digital, Seagate, Micron
• 00:53 – Chip makers benefit from AI arms race: AMD, Nvidia
• 01:03 – Biggest losers: Bitcoin Accumulation Strategy
• 01:11 – Broader pressures: tariffs and AI shakeups
• 01:19 – Gartner’s largest annual plunge since 2000

Recap

This edition makes clear: AI is not only reshaping U.S. tech companies but could be the linchpin for restoring American market dominance in 2026. While some tech and hardware firms posted extraordinary years, others—particularly exposed to crypto and disruptive market forces—faced sharp declines. The episode closes with a brief note that WSJ’s Tech briefing will return after the holiday break.