Shares of technology companies rose, recouping some of their losses from recent sessions, as investors restored their faith in the lucrative potential of artificial intelligence.
Shares of Amazon surged after its investments in AI seemed to bear fruit in its latest quarterly report. Amazon's progress quelled fears raised by Microsoft and Meta Platforms, which struggled to justify the level of investment in AI with their earnings reports.
"The expectations for spending on AI have gone up exponentially for the hyper-scalers, the mega tech names," said Quincy Krosby, chief global strategist at brokerage LPL Financial. There's a sense that "'this is how revolutions unfold, look at the industrial revolution, more and more capital expenditure is going to lead to more and more profound applications."
Intel shares jumped 7.8% after it reported one of its largest losses ever, but offered guidance for sales growth in the current quarter that surpassed expectations.
Apple shares fell after the consumer electronics giant's sales projection for the current quarter suggested an anticipated mass wave of upgrades to the iPhone 16 has not materialized.
Microsoft affiliate OpenAI embedded a search engine in its popular ChatGPT chatbot, entering a space long dominated by Alphabet's Google as technology companies compete to use artificial intelligence to improve search results.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
November 01, 2024 17:38 ET (21:38 GMT)
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