CNBC's "Fast Money" AI Battle Royale… And The State Of U.S.-China Relations 12/19/25
Dec 19, 2025
Rick Sherland, Founder of Sherland Partners and senior advisor at Wedbush Investment Banking, dives into the fierce competition between AI hardware and hyperscalers. He predicts that enterprise adoption will broaden the AI trade, significantly increasing demand for GPUs and data centers. The discussion also touches on the impact of rising U.S.-China tensions, including a TikTok joint venture and military aid to Taiwan, and how these factors could reshape global markets in the upcoming year.
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Hardware Leads AI Trade Rebound
- Hardware (semiconductors, memory) showed renewed leadership in the AI trade as investors favored firms with visible multi-quarter pricing and cash flow.
- Tim Seymour and others noted demand, Fed support, and strong U.S. fund flows underpinned the rally.
Visibility Trumps Hype In AI Winners
- Micron's guidance gave rare multi-quarter visibility into pricing and demand, separating it from peers.
- Guests argued investors will favor companies with clear free cash flow and ability to pay down debt into 2026.
Prefer Cash-Generative AI Players
- Focus on companies that generate free cash flow and can fund AI buildouts without diluting shareholders.
- Courtney Garcia recommended buying names with sustainable cash flow and creditworthy balance sheets.