CNBC's "Squawk on the Street" team discusses semiconductors, the Magnificent 7 companies, the AI trade and more with Stacy Rasgon of Bernstein Research.

Stacey Raskin, Senior Semiconductor Analyst at Bernstein, stated that the semiconductor sector, particularly companies involved in AI, is expected to maintain its strong performance into 2026. He noted that major firms such as NVIDIA, Broadcom, AMD, and Intel have each seen significant gains, and current forecasts suggest there is still room for further growth and higher valuations.

Raskin addressed concerns about potential market saturation and competition, emphasizing that the sector remains in a growth phase with substantial opportunities ahead. He recommended broad exposure to semiconductor stocks, as the market is not yet mature and ongoing innovation is likely to benefit multiple players.

Chips trade still has legs in 2026, says Bernstein's Rasgon

Let's stay on topic here, talk a bit more about semiconductors, of course, as well. Biggest gainers of the year, outperforming some of the hyperscalers, in fact, in the so-called AI trade. NVIDIA, Broadcom, AMD, Intel, all of them up more than 40% year-to-date. Joining us to talk about what we saw and really more what we can expect in 2026 is Stacey Raskin. He's Senior Semiconductor Analyst at Bernstein. Stacey, good to have you. Does it just keep going next year? The journal writes a long story today, you know, talking about the various gating issues, whether it's lack of transformers for the power or memory. How do you see things evolving next year? Yeah, I think it probably still goes. You know, it's funny, like, our general call in 25, if I wanted to sum it up, was kind of own the high-quality AI names, ignore most of the rest. And I guess you could have owned the lower-quality AI names, too. But, I mean, AI was working pretty well. And I actually don't think it stops in 2026. You know, you can look at the forecast that companies like NVIDIA or Broadcom have put out. You can look at where sort of the current estimates are, and they're still way below that. I think there's still plenty of room for numbers to move higher. And even valuations, like, are not crazy for a lot of these names. Again, NVIDIA, Broadcom. I mean, NVIDIA is in, what, the low 20s price-to-forward earnings for amazing growth. I understand all the worries about, like, peak spending and digestion cycles and everything else. But, I mean, look, people have been worried about that since this started. And kind of look at where things are going. That clearly wasn't a problem in 25. If you look at, like, the committed volumes that are already there, it's probably not an issue for 2026. And assuming open AI does execute on their commitments, and we'll see, but if that happens, it doesn't even start until the end of 2026, that spending. So it may not even be 2027 either. I think this trade still has legs. I think so. Yeah. So, all right, you and I may be having the same conversation a year from now. Maybe. I am curious, though, because we are going to be discussing more, you know, the competition to the extent that NVIDIA faces any at all. But whether it's Alphabet's TPU, which certainly we've been talking a lot about of late, whether it's Broadcom trying to help open AI design its own chip, because you've got to get cost per token, per dollar, per watt down over there versus your competitor, Gemini. How do you see that evolving in 2026? Yeah, so there's always competition. This is semiconductors. So it's on NVIDIA as well as on all these other players to make sure that they're moving their roadmaps along and keeping innovation going. And, you know, I've said this, I think, on this show in the past, but I still think right now it's sort of, I understand the nervousness. You know, the narrative swings back and forth, GPU, TPU and back again. It's one reason we've advocated owning both NVIDIA and Broadcom. Like, you never know which way it's going to swing in any given moment. I still think it's the wrong time to really worry about that in general. I think the right question to ask today is still, is the opportunity in front of us still big or is it not? Like, rather than who's winning or losing, because presumably we're not in a mature, saturated market yet. If you think we are, like, there's a whole other set of questions you might want to ask. But in a world where things, I think, are still growing, like, massively, you know, if the opportunity is still big, then everybody thrives. And if it's not big, then everybody's screwed. Right. So I don't think we're at the point yet where I necessarily, from a fundamental basis, have to worry about who's winning and losing. I would just own the space, frankly.

The United Arab Emirates says it's withdrawing its remaining forces from Yemen. The move comes after Saudi Arabia bombed a port in Yemen, saying it targeted an arms shipment intended for a UAE-backed separatist force.

Al Mukalla

Saudi Arabia bombs port in Yemen

Eurostar suspended train services in Europe on December 30 after a power supply issue in the Channel tunnel, sparking travel chaos for passengers during the very busy New Year period. Its services to and from London “are suspended until further notice" and the company advised its passengers to rebook their journeys for other days.

Paris

Eurostar cancels all services after power issue

In an overnight strike, the Saudi military hit a Yemeni port saying they were neutralising a weapons shipments arriving from UAE. The UAE has denied the shipment contained weapons and claimed the vehicles were not intended for any groups. Both countries have supported the fighting sides in the over-decade long war in Yemen, but this strike has turned this rivalry into an open dispute.

The UAE denies shipping weapons to Yemen after overnight Saudi strike

The Kremlin said Tuesday it would toughen its negotiating position in talks on ending the war in Ukraine after accusing Kyiv of attacking a Russian presidential residence — an allegation that Kyiv said was baseless and intended to prolong the conflict.

Moscow

Russia will toughen negotiating stance on war in Ukraine

China fired rockets into waters off northern and southern Taiwan on Tuesday (December 30) and deployed new amphibious assault ships alongside bomber aircraft and destroyers on the second day of its most extensive war games.

Taipei City

China fires rockets towards Taiwan in war games simulating blockade

President Donald Trump on Monday confirmed an alleged drug-related site was targeted during a recent strike, saying, "they load the boats up with drugs, so we hit all the boats and now we hit the area." Trump did not say when the strike happened or exactly where.

Caracas

U.S. strike hits Venezuelan port facility

The search for Malaysia Airlines flight 370 that went missing in 2014 with 239 people on board is expected to resume Tuesday (December 30). The Malaysian government and a private marine robotics company say they will use advances in technology to aid in the search.

Kuala Lumpur

Search resumes for Malaysia Airlines flight that disappeared in 2014

The two countries have agreed to hold fire, freeze troop movements and allow civilians to return home under a new agreement.

Krong Poi Pet

Thailand-Cambodia ceasefire holds as 72-hour observation period ends

Head of Yemen's presidential council, which is supported by Saudi Arabia, says UAE-backed forces in the country should leave within 24 hours.

Yemen’s presidential council cancels UAE defence deal

U.S. President Donald Trump said the United States could support another major strike on Iran were it to resume rebuilding its ballistic missile or nuclear weapons programs and warned Hamas of severe consequences if it does not disarm.

Florida

Middle East Conflict

Trump warns Iran of possible strike, urges Hamas to disarm

U.S. hit an area in Venezuela where boats are loaded with drugs, Trump says, as Pentagon carries out another deadly strike in the Pacific. This claim follows a series of U.S. strikes on boats in the Eastern Pacific, raising the total number of known strikes to 31 and resulting in over 100 deaths.

Trump claims attack on a dock in Venezuela, strikes kill two in Pacific

The Taiwanese government says it has placed its forces on alert as China intensifies its military presence in the Indo-Pacific Ocean and launches air, navy and rocket drills around the island.

Taiwan's forces on alert as China launches military drills

Ukrainian President Volodymyr Zelenskyy is denying Russian Foreign Minister Sergei Lavrov’s claim that Ukraine tried to attack President Vladimir Putin's residence in northern Russia.

Kyiv

Ukraine Invasion

Zelenskyy denies Russian claim that Ukraine targeted Putin’s residence

President Trump said after a meeting with Israeli Prime Minister Benjamin Netanyahu that Hamas must disarm soon or "there will be hell to pay." He said the next phase of the Gaza peace plan could move forward quickly if Hamas disarms.

Washington

Trump warns "hell to pay" if Hamas doesn't disarm

CBC’s Kris Reyes highlights the biggest AI advancements in 2025 along with the continued calls to establish clear boundaries in an effort to prevent misuse.

DeepSeek and the biggest AI advancements in 2025

Russia accused Ukraine on Monday (December 29) of trying to attack President Vladimir Putin's residence in northern Russia, although it provided no evidence to back up an assertion that Kyiv dismissed as baseless and designed to undermine peace negotiations.

Russia claims Ukraine tried to attack Putin residence

Two helicopters collided above Hammonton, New Jersey, and one person has died, officials say. CBS News' Elaine Quijano reports.

Hammonton

Helicopters collide in New Jersey

U.S. President Donald Trump is meeting with Israeli Prime Minister Benjamin Netanyahu in Florida on Monday (December 29) as questions linger about the future of the U.S.-backed ceasefire in Gaza.

Palm Beach

Trump and Netanyahu meet in Florida to discuss Gaza ceasefire

British-Nigerian boxer Anthony Joshua was involved in a road accident on Monday in Makun, Ogun State, south-west Nigeria.

Makun

British boxer Anthony Joshua survives car crash that killed two others

In a new show of force, China has mobilized its navy, air force, and ground troops to simulate a blockade of the self-ruled island's key ports. The military drill comes on the heels of an $11bn US arms sale to Taipei.

China stages new military exercises around Taiwan

U.S. President Donald Trump said he believes both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin truly want peace as he and Zelenskyy met in Florida. Some experts say Trump is 'delusional' if he truly thinks Putin wants peace.

Trump-Zelenskyy meeting ends with optimism but no deal

Although the U.S. security guarantees for Ukraine have been "100% agreed," they have a short expiration date, the Ukrainian president explained after revealing more details following his meeting with Trump on Sunday.

U.S. security guarantees for Ukraine set for 15 years, Zelenskyy says

China's military moved army, naval, air force and artillery units around Taiwan on December 29 for its "Justice Mission 2025" drills, as the island vowed to defend democracy and mobilized troops to rehearse repelling a potential Chinese attack.

China launches 'Justice Mission 2025' war games around Taiwan

President Trump spoke with Russian President Vladimir Putin by phone before meeting with Ukrainian President Volodymyr Zelenskyy in Florida on Sunday. Trump said he thinks both men are ready for peace.

Trump meets with Zelenskyy, insists Putin is ready for peace

Far-right politics have pushed further into the mainstream across much of Europe. Populist parties, even in opposition, are shaping national debates on migration and the economy. The trend reflects growing voter frustration over living costs, borders and political trust.

Berlin

Far-right politics gaining influence across Europe

Ukrainian President Zelenskyy is set to discuss a new peace plan draft with U.S. President Trump in Florida on Sunday (December 28). However, fresh Russian attacks on Kyiv have left a third of the city without power, undermining local confidence.

Kyiv residents fear escalation amid Zelenskyy-Trump peace talks

A report has sought to catalogue some of the most significant extreme weather events of the year. UK charity Christian Aid found that heatwaves are pushing the limits of human adaptation, hurricanes and typhoons are breaking records, and droughts are devastating lives across the globe. It's all coming at a heavy financial cost.

Top 10 natural disasters cost over $120 billion in 2025, report says

Russia attacked Kyiv and other parts of Ukraine with hundreds of missiles and drones on Saturday, ahead of what President Volodymyr Zelenskiy said would be a crucial meeting with U.S. President Donald Trump to work out a plan to end nearly four years of war.

Russian drones, missiles pound Kyiv ahead of Zelenskiy-Trump meeting

French actor Brigitte Bardot has died aged 91, her foundation said on Sunday (December 28). She shot to international fame dancing the mambo barefoot in "And God Created Woman," her tousled hair and fierce energy radiating a sexual magnetism rarely before seen in mainstream cinema.

Saint-Tropez

Brigitte Bardot, France's 'legend of the century', has died

A ceasefire is now in place between Cambodia and Thailand after weeks of cross-border fighting. But with nearly a million civilians displaced and trust in short supply, the focus now is on whether the guns will stay silent.

Breakdown