CNBC's Kristina Partsinevelos joins 'Money Movers' to report on how Wall Street is seeing the AI trade.

New York

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Wall Street analysts are maintaining a positive outlook on the artificial intelligence sector, despite a recent decline in the influence of mega-cap tech stocks and growing concerns about the sustainability of AI spending. Firms such as Jefferies and Bernstein continue to recommend companies like Broadcom and NVIDIA, citing strong positions with major customers and ongoing technology advancements. 

Micron is also expected to report strong earnings, with analysts crediting disciplined supply growth and increased demand from AI applications. While Broadcom's stock recently declined due to concerns over potentially losing Google's business for its next-generation chips, Wall Street overall sees the AI infrastructure buildout as ongoing and robust.

How Wall Street sees the AI trade

Christina Parts Nevelos joins us with how Wall Street sees the A.I. trade right now. And Seema Modi has a closer look at how some of these widening bond yields for Oracle and some other hyperscalers might be a warning sign for a bubble. Let's begin with K.P. Morning K.P. Good morning Carl. Well the magnificent sevens grip on the market is loosening through November. The mega cap tech cohort accounted for roughly 43 percent of the S&P 500 gains. But that influence is fading. Investors are questioning the sustainability of A.I. spending. High debt levels aren't helping either. But Wall Street isn't ready to bail on the A.I. trade just yet. Jeffrey says it's quote still in fashion. The firm names Broadcom a top pick with a three hundred fifty dollar price target arguing custom chip adoption is just getting started. And Broadcom they say is perfectly positioned with hyperscaler customers like Google Meta and bike dance already locked in. Jeffries is also upgrading KLA to buy betting lower interest rates will help analog as well as chip equipment firms on NVIDIA. Jeffrey writes quote we haven't given up on video given the technology moat and valuation. We view fears as largely overdone with Blackwell Ultra rollout fully underway. They're sticking with their two hundred fifty dollar price target. Bernstein also reading outperform on the stock. Most companies most analysts are sticking with NVIDIA despite the recent sell off. NVIDIA itself also making moves today launching its Nemo Tron 3 family of opening I models to help startups build A.I. agents faster. And then there's Micron with earnings out on Wednesday after the bell. Rosenblatt has a buy rating expecting another record quarter with even stronger guidance ahead. They credit discipline supply growth over just the past few years and note that A.I. applications are both increasing memory demand and allowing for differentiation despite the stock being up what almost one hundred and ninety percent this year alone. The Ford P is roughly around 12 times which they say justifies the growth. So they like the valuation. Overall though the Mag 7 may be stumbling but the A.I. infrastructure build out is far from over according to these Wall Street guys. What about Broadcom took a beating on Friday after what many on the street analysts defended it and said was a pretty good quarter. It's down again today. What's the read on on that one. Post earnings it was an 11 percent drop to your point which is surprising. But there is a few things the run up into that name was quite high. The stock climbed 25 percent over two months heading into the print versus NVIDIA that actually fell. And I was using often their compared because they're competing. The hype was around primarily Broadcom's building the chips for Google. A lot of strength there. The reason why you're seeing the sell off this morning has to do with a report that perhaps Google may be using MediaTek another company to build the next iteration of their Google TPUs their tensor processing unit. So it's a very specific story. Broadcom hasn't confirmed this or anything but that's adding to the sell off specifically today that maybe Broadcom will not get all of Google's business for its next iteration. The V8 of the T the next iteration just think the version eight of the latest custom chip for Google.

The son of filmmaker Rob Reiner was arrested on homicide charges after the director of beloved movies like "When Harry Met Sally ..." and his wife were found dead in their Los Angeles home, a police official said on Monday.

Los Angeles

Rob Reiner's son arrested after director and wife found dead

A jury found Brian Walshe guilty of first-degree murder in the death of his wife Ana on New Year's Day in 2023 in their Massachusetts home. Legal analyst Jennifer Roman joins with more details.

Boston

Brian Walshe found guilty of first-degree murder in wife's death

Hong Kong's High Court on Monday (December 15) found pro-democracy campaigner Jimmy Lai guilty of conspiracy to collude with foreign forces and to publish seditious material under a China-imposed national security law that could see him jailed for life.

Hong Kong Island

Hong Kong court finds Jimmy Lai guilty in landmark security trial

Ukrainian President Volodymyr Zelenskyy and U.S. negotiators are meeting in Berlin. As the U.S. grows increasingly pressed to end the four-year war, the peace negotiations continue, with territorial concessions to Russia remaining the "sticking point" for Ukraine.

Berlin

Ukraine Invasion

Zelenskyy offers to drop NATO bid for security guarantees

Police have released a person of interest who was detained in a shooting at Brown University. Two students were killed and at least nine others were injured in the Saturday attack. Tom Hanson spoke with students about the shooting.

Providence

Police release person of interest in shooting at Brown University

Ukraine’s President Volodymyr Zelenskiy proposed abandoning NATO ambitions in exchange for Western security guarantees during peace talks in Berlin. The move marks a major shift as Kyiv seeks to end the war with Russia without ceding territory.

Ukraine offers to drop NATO bid at Berlin peace talks

Rob Reiner and his wife, Michele, were found dead Sunday in their Los Angeles home, sources told CBS News, in what police called an apparent homicide. Rob Reiner was 78 and Michele Reiner was 68.

Brentwood

Director Rob Reiner and his wife found dead in their L.A. home

Far-right candidate Jose Antonio Kast wins Chile's presidential run-off, after defeating his leftist opponent.

Santiago

Far-right candidate Jose Antonio Kast wins Chile’s presidential election

The person of interest authorities took into custody in connection with the shooting at Brown University has been identified as Benjamin Erickson. He's a 24 year old, originally from Wisconsin.

Person of interest identified in Brown University shooting

Two alleged gunmen who killed 15 people at a Jewish celebration in Sydney's Bondi Beach were a father and son, police said on Monday, as Australia mourned victims of its worst gun violence in almost 30 years. This video contains graphic images.

Bondi Beach

Father and son behind Bondi mass shooting, Australian police say

Israel has described a deadly mass shooting at Sydney’s Bondi Beach as an attack on Jews, after gunmen opened fire during a Jewish holiday event, killing at least 11 people.

Council of the City of Sydney

Israel calls Bondi shooting attack on Jews, urges action on antisemitism

Two gunmen attacked a Hannukah celebration on a Sydney beach Sunday, killing at least 11 people in what Australian Prime Minister Anthony Albanese called an act of antisemitism and terrorism.

Gunmen kill several at Jewish gathering in Sydney's Bondi Beach

Providence police have detained a "person of interest" in connection with the Brown University shooting that left two students dead and another nine people wounded, as the Ivy League school said it had lifted a shelter-in-place order for its campus in Rhode Island.

Police hold person of interest after Brown University shooting

Belarus has freed more than 120 political prisoners in a major thaw in relations with the United States. The releases came in return for Washington lifting sanctions on potash, a key source of revenue for Belarus.

Minsk

Belarus releases 123 prisoners as U.S. lifts sanctions

Washington was still under a state of emergency on Saturday after torrential rains swamped communities. Plus, snow and dangerous cold are falling on some in the Midwest and on the East Coast. Nicole Valdes has more from Washington state.

Deming

Washington under state emergency as rains ease

China's plans for a massive new embassy in the British capital were delayed until January. Construction plans have proven controversial, with some raising espionage concerns. Ramy Inocencio has more from London.

London

Controversial Chinese embassy construction in London delayed

A United Airlines jetliner lost one of its engines during liftoff from Washington's Dulles Airport bound for Tokyo.

Tokyo

United Airlines flight loses engine during liftoff, sparks brush fire

Thailand says there is no ceasefire with Cambodia, and its military will continue fighting until it faces no further threat. That's despite the US president's earlier announcement that both sides had agreed to stop their attacks. Villages along the border are largely empty, except for a handful of volunteer security guards.

Phnom Penh

Fighting continues along Thai-Cambodia border

U.S President Donald Trump has threatened potential land strikes on Venezuela to target an illegal narcotics trade. Trump says the drugs are arriving on U.S shores and that President Nicolas Maduro is behind it. Maduro has denied the claim.

Caracas

Washington considers Venezuela land assault

King Charles III, who shared his cancer diagnosis with the world in February 2024, announced Friday that he would be scaling back his treatment after his doctors have seen success. The monarch also pushed for people to get early screenings, saying, "Early diagnosis quite simply saves lives."

King Charles to reduce cancer treatments

Belarus has freed more than 100 political prisoners, including a Nobel Peace Prize winner, in exchange for sanction relief on Belarusian potash, a U.S. statement said on Saturday.

Belarus releases political prisoners as U.S. lifts some sanctions

Ukrainian President Volodymyr Zelensky said he visited troops fending off Russian advances near the embattled city of Kupiansk that Moscow claimed to have captured last month, which Kyiv denies.

Kup'yans'k

Zelenskyy visits troops as Ukraine claims gained ground near key city

In an audacious move, the EU has decided to indefinitely immobilize the Russian sovereign assets, pushing back against external pressure to release the funds before Moscow agrees to pay war reparations to Ukraine.

Brussels

EU locking in Russian assets for good

U.S. House Democrats released new images from the estate of the late convicted sex offender Jeffrey Epstein that feature U.S. President Donald Trump and other high-profile people previously linked to Epstein.

Washington

House Democrats release more Epstein estate photos

For the first time, Amnesty International has accused Hamas and its allies of committing crimes against humanity, following an investigation into the 7 October 2023 attacks on Israel. The organization found that 1,221 people were killed and said the mass killing of civilians amounted to extermination.

Jerusalem

Middle East Conflict

Amnesty accuses Hamas of 'crimes against humanity' for Oct. 7 attack

The “Architects of AI” were named Time's person of the year Thursday, with the magazine citing 2025 as when the potential of artificial intelligence “roared into view” with no turning back.

Time magazine names 'Architects of AI' as person of the year for 2025

Message board website Reddit filed a lawsuit on Friday (December 12) asking Australia's High Court to overturn the country's social media ban for people under 16 as well as its inclusion in it, calling the law an infringement of free political expression.

Reddit sues to overturn Australian social media ban

As tensions rise with Venezuela, U.S. President Donald Trump said land operations could start "pretty soon." Sources tell CBS News the administration is also planning more tanker seizures.

Trump says Venezuela land operations could begin 'pretty soon'

One day after capturing an oil tanker off Venezuela's coast, the U.S. has sanctioned three of Nicolas Maduro's nephews, along with six other oil tankers.

Trump ramps up pressure on Maduro with new sanctions

The EU has decided to keep the assets of the Russian Central Bank immobilised for the foreseeable future. The ban, which is based on a provision for economic emergencies, pushes back against external attempts to release the €210 billion in assets before Ukraine is compensated.

How Wall Street sees the AI trade

Breakdown

See The Full Story

Rise of AI