Summary3 min read

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.

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Transcript1 lines

[00:01]
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Exchanges on navigating macro uncertainty Exchanges on the forces shaping global markets for the sharpest analysis on finance, business and the economy, count on exchanges. The Goldman Sachs Podcast Listen now. Here's your afternoon TNB Tech minute for Wednesday, December 31st. I'm Julie Chang for the Wall Street Journal. AI acceleration could pave the way for U.S. stock indexes to regain ground by early 2026. That's according to XT director Kathleen Brooks. In a note, she says US Stocks have lagged other global indexes this year even as US Tech firms are getting bigger, which has raised questions about valuations. Still, she says, if AI is nearing a breakout phase, US Stocks could regain leadership in markets. Some of the biggest stock moves of this year included Western Digital. The data storage stock has jumped over 280%, marking its best year ever and and making it the S&P 500's top gainer. Hard drive makers have resurged as investors bet on AI, driving demand for digital storage. Shares of rival Seagate Technology have soared roughly 218%, and micron technology jumped nearly 238% through today. Chip makers were investor darlings this year, propelled by the US China AI arms race and a capital spending boom. AMD and Nvidia were both set for double figure percentage annual gains. On the flip side, Bitcoin accumulation company Strategy was 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. Meanwhile, pressures including US 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, according to Dow Jones Market Data. In one example, IT firm Gartner plunged 47%, setting it up for its biggest retreat since the year 2000. And that's it for your TNB Tech Minutes. Heads up. We'll be off tomorrow for the holiday, but back in your feed Friday morning. Have a happy new year.