Investing.com– Asian stocks recovered from early losses on Friday after a Bloomberg report that OpenAI expects annualized revenue to reach or exceed $70 billion by year-end eased investors’ concerns about demand for artificial intelligence.
U.S. stock index futures also turned modestly higher as of 02:29 ET (06:29 GMT).
The rebound followed a sharp selloff in technology shares on Wall Street on Thursday, when weaker-than-expected revenue projections for OpenAI revived concerns about whether massive spending on AI infrastructure would generate sufficient returns. The Nasdaq Composite fell 1.3%, while the S&P 500 lost 0.5%.
Stocks recover losses after Bloomberg OpenAI revenue report
Japan’s Nikkei 225 traded flat after falling nearly 1% earlier in the day, while the broader TOPIX index gained 0.4%.
China’s Shanghai Composite edged up 0.3%, while the blue-chip Shanghai Shenzhen CSI 300 added 0.4%. Both indexes had fallen more than 1% in early trade.
Hong Kong’s Hang Seng jumped 1.5%, with the Hang Seng TECH sub-index climbing nearly 3%.
OpenAI’s annualized revenue was about $50 billion at the end of September, Bloomberg reported on Friday, and the figure is expected to reach $70 billion or more by December.
The latest revenue outlook helped ease some investor concerns following reports that OpenAI’s annualized revenue was running about $20 billion below earlier indications, which had triggered selling in chipmakers and other companies exposed to AI spending.
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SoftBank Group (TYO:9984), a major investor in OpenAI, pared some losses to trade 3.5% lower, while chip-related and electronics companies also trimmed declines.
Markets in South Korea and Taiwan were closed for holidays.
Australia’ S&P/ASX 200 closed 0.6% higher. However, Nvidia-backed data-centre operator Firmus shelved plans for a roughly $5 billion initial public offering, citing market volatility and opting for private fundraising instead.
Elsewhere, Singapore’s Straits Times Index traded flat, while India’s Nifty 50 gained 1.1%.
Indian information technology companies rose on Friday on accelerating artificial intelligence revenue at Tata Consultancy Services (NSE:TCS), despite sluggish growth in its traditional business.
Traders weigh elevated oil prices, volatile bond markets
Energy prices remained another source of pressure. Brent crude surged more than 4% on Thursday to above $103 a barrel as concerns over the war in the Middle East threatened oil supplies and stoked inflation fears.
Source: finance.yahoo.com
