Stocks ended the week higher despite volatility in the AI sector, as investors balanced record highs with concerns over sector concentration and shifting company outlooks.
Key facts
- •The S&P 500 closed above 7,800 for the first time on Tuesday.
- •SpaceX is reportedly looking to raise $40 billion to expand its AI compute capacity.
- •Goldman Sachs raised its price target for SpaceX to $230 from $220.
- •OpenAI expects annualized revenue of at least $70 billion by the end of the year.
- •Starbucks outperformed competitors in recent customer feedback regarding speed, quality, and brand trust.
U.S. stocks finished the week in the green, with the S&P 500 gaining 1.2% and the Nasdaq rising 0.6%. The market experienced significant volatility, hitting record highs early in the week before a sharp decline in tech stocks on Thursday, followed by a recovery on Friday. Investors are navigating uncertainty driven by interest rates and oil prices while adjusting their exposure to artificial intelligence.
By the numbers
SpaceX Developments and AI Infrastructure
SpaceX is reportedly seeking to raise $40 billion to expand its AI compute business and purchase additional Nvidia chips. The company also announced a deal to acquire a nationwide spectrum portfolio, which may enhance its Starlink service's ability to compete with traditional wireless carriers. Analysts at Goldman Sachs and Barclays have responded positively to these growth plans, raising price targets and initiating coverage.
OpenAI Revenue Reports and Market Sentiment
AI stocks experienced a sharp sell-off on Thursday following a Financial Times report suggesting OpenAI's annualized revenue was lower than previously indicated. However, sentiment shifted on Friday after Bloomberg reported that OpenAI expects annualized revenue of at least $70 billion by year-end. This volatility highlighted the risks of concentrated portfolios, prompting calls for greater diversification.
Starbucks Turnaround and Market Speculation
New data from HundredX indicates that Starbucks is seeing improved customer spending intentions and gains in brand trust compared to competitors like Dunkin', Dutch Bros, and 7 Brew. Meanwhile, reports that Starbucks explored an acquisition of Chipotle have sparked market speculation, though analysts remain skeptical that a deal will occur.
Advertisement
This article was independently rewritten by ManyPress editorial AI from reporting originally published by CNBC Technology.
