Shares of technology companies rallied as fears about a speculative bubble eased following Thursday's slump.
Proxy advisory firm Institutional Shareholder Services has advised Tesla investors to vote against a new $1 trillion pay package for Chief Executive Elon Musk and against Tesla making a potential investment in xAI.
Capital expenditure on artificial-intelligence infrastructure accounts for a significant portion of all U.S. capex growth, but that is not necessarily alarming considering the stage in the technology cycle, said strategists at brokerage BNP Paribas.
"The economy-wide rollout of AI technology has been accompanied by a massive buildout in investment in data centers, computer equipment, semiconductors, and power generation," the strategists said. "We expect this concentration of investment in the AI buildout to continue into 2026," the strategists noted.
Alibaba Group shares rose after President Trump sounded optimistic notes in comments about negotiations between Washington DC and Beijing.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
October 17, 2025 17:22 ET (21:22 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.