Nvidia and AI companies recovered some of their losses after two days of sharp declines in global markets

Shares of major U.S. artificial intelligence companies resumed their gains on Friday after two days of significant losses, supporting the Nasdaq’s advance and tempering declines on global exchanges. Investors reacted positively to the results of some companies and the sector’s outlook, although concerns persist over the high costs of developing AI infrastructure.

Nvidia, one of the leading manufacturers of artificial intelligence chips, rose 2.8% after losing 9.3% on Wednesday and 3.2% on Thursday. CoreWeave gained 6.3%, Micron Technology 5.1%, and Lam Research 8.2% after announcing a share buyback program of up to $25 billion. IREN posted the largest gain, rising 20%, following better-than-expected financial results.

The Nasdaq advanced 1.1%, while the S&P 500 rose 0.3%, although it ended the week down 2.7%. The Dow Jones fell 0.5%.

Volatility was fueled by the results of the U.S. congressional elections, the possibility of stricter rules for data centers, and rising borrowing costs. Labor market data also increased fears that the Federal Reserve could raise interest rates in December, which would make investments in AI infrastructure more expensive.