US stock markets opened higher on Friday, as technology shares recovered following a sell-off in artificial intelligence-linked stocks triggered by concerns over OpenAI's revenue figures.
The Dow Jones Industrial Average rose 86.91 points, or 0.17%, to 51,318.55 at 9:31 a.m. EDT. The S&P 500 gained 22.08 points, or 0.28%, to 7,787.44, while the Nasdaq Composite advanced 128.92 points, or 0.47%, to 27,322.26, according to real-time market quotes.
The positive opening followed a weak session on Thursday, when the Nasdaq Composite fell more than 1%, marking its biggest single-day decline since mid-August. The technology-heavy index recorded its second consecutive session of losses after hitting fresh record highs earlier in the week.
Technology stocks led the early advance. The State Street Technology Select Sector SPDR ETF, which tracks technology shares, rose around 1%. SpaceX gained about 2% following news of a deal to acquire a nationwide spectrum portfolio. Meanwhile, shares of telecom operators AT&T, Verizon and T-Mobile fell as investors assessed the potential competitive implications of the agreement.
Other technology stocks also moved higher, with Lumentum gaining 8% and KLA rising 2%. The gains came after a difficult session on Thursday, when artificial intelligence-linked stocks came under pressure following fresh details about OpenAI's revenue performance.
CNBC reported that OpenAI had told investors it recorded an annualised revenue run rate of $50 billion at the end of September. A figure of $68 billion had been widely reported last month, although a person familiar with the matter said that estimate also included gross revenue from partners.
The report raised questions about how investors are valuing AI businesses and the scale of spending flowing into the sector. The Nasdaq Composite fell more than 1% on Thursday, marking its biggest single-day decline since mid-August and extending losses for a second consecutive session after hitting record highs earlier in the week.
Adam Crisafulli of Vital Knowledge said the sell-off reflected extreme positioning imbalances that could take time to unwind. He cautioned that AI-linked technology stocks may not stage an immediate, sharp recovery.
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Crisafulli also pointed to concerns about the attractiveness of standalone frontier AI companies and growing market resistance to the volume of debt and equity being raised to finance AI-related investments.
Despite the recent pullback, all three major US stock indexes remained on track to finish the week higher. As of the latest weekly assessment cited by CNBC, the Dow Jones Industrial Average and Nasdaq Composite were each up around 0.4%, while the S&P 500 had gained nearly 1%.
Investors are weighing the longer-term growth potential of artificial intelligence against questions about revenue generation, financing requirements and valuations. Friday's gains offered some relief to technology stocks, but concerns over the sustainability of the AI investment boom remained in focus.
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