AI Stocks Forecast December 2025: Google's Stock Achieves Longest Streak

Michael Burry’s Warning vs Nvidia’s Confidence: Two Opposing Forecasts for AI Stocks

Financial markets are undergoing an unfamiliar period of tensions, with investors, analysts, and corporate heads arguing over the future of markets. For instance, the infamous investor Michael Burry, who accurately predicted the 2008 housing market crash, is viewing the entire US stock market with pessimism. He sees hardship and difficulties ahead for the markets, and he predicts a crash that will include the entire market.

On the other hand, Nvidia rejects the notion that the AI sector is in a bubble, stating that everyone is using their products and the economy is still early on in the economic cycle. Nvidia also signaled that it is unlikely that its competitors will be able to really compete with its products any time soon. Such competitors include Amazon with its brand-new AI chips, as well as companies like Anthropic and its competitor OpenAI, which have already started using them.

Nasdaq Rally Continues as AI Bubble Fears Are Ignored

As for stock indices, the Nasdaq is maintaining its bullish trajectory and is currently on par to have its second-best monthly close since its 21% uptick earlier in the year, completely ignoring the AI bubble talks. 

Nasdaq 100, monthly chart

Google's Stock Achieves Longest Bullish Streak as AI Chip Demand Surges

On the same note, Google’s stock price is recording its longest monthly bullish streak since November’s high for the eighth month in a row, rising as high as 13.5% and 66% year-to-date, as the chart below demonstrates.

Google stock, monthly chart

Google is also having talks with Meta, with the latter intending to spend billions of dollars' worth of AI chips in 2027 for its data centers. Such deals will put Google in a better standing as a proper competitor for Nvidia in the AI chips market. Google also intends to expand its AI chips business to include other clients as companies like Amazon and Microsoft join the AI chip race.

Nvidia’s 90% Market Share Raises the Key Question: Boom or Bubble Ahead?

Despite the packed race, Nvidia still holds over 90% of the advanced AI chip production market, despite the news of Google’s new chips gaining a lot of attention in the last few weeks, especially since these chips can be used to run new AI models.

In conclusion, do you lean towards believing Michael Burry’s outlook that the stock market is struggling with tough years ahead? Or do you think that the advancing competition-packed AI sector will increase demand for AI stocks, guaranteeing them to rise in value? This is what we’ll look out for in the coming days.