The Dow closed above 50,000, while Nvidia surged as traders zeroed in on AI spending.

The Dow Jones Industrial Average surged past the historic 50,000 mark on Friday, while the S&P 500 closed sharply higher. Nvidia and other chipmakers rallied, but Amazon slipped after the cloud giant projected a significant rise in spending on AI infrastructure.

Amazon (AMZN.O) fell 5.6% after announcing plans for a more than 50% increase in capital spending this year, ramping up the race to lead in AI technology, following a similar move by Alphabet (GOOGL.O) on Wednesday.

Chip stocks jumped on hopes they’d gain from Amazon and Alphabet ramping up spending on AI data centers.

Nvidia (NVDA.O), the world’s most valuable company, jumped 7.8%, while Advanced Micro Devices (AMD.O) surged 8.3% and Broadcom (AVGO.O) climbed 7.1%. The PHLX semiconductor index (.SOX) wrapped up the day with a 5.7% gain.

Friday’s bounce in the S&P 500 and Nasdaq came after three days of losses fueled by AI worries. This week, several software companies took a hit over fears that AI could ramp up competition and squeeze profit margins, while investors also grew uneasy about high valuations after years of big gains in AI-related stocks.

“This trade has been volatile, and there have been selloffs at times, but I think there’s enough evidence that there’s real demand for AI products, real promise with what they can do, and a necessity of a lot of spending to get there,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.

“So when there’s this kind of a selloff, I think there’s a floor where there’s going to be a certain set of investors that steps in and starts buying these names.”

Software and data services companies rebounded from recent losses.

CrowdStrike (CRWD.O) and Palantir (PLTR.O) each jumped over 4%, while the S&P 500 Software & Services index (.SPLRCIS) gained 2.4%, snapping a seven-session losing streak. Still, its roughly 8% weekly drop marked its worst performance since March 2020.

The Dow beat the S&P 500 and Nasdaq this week, as investors shifted away from the tech stocks that have dominated in recent years and toward companies that haven’t seen those big gains. Following the same pattern, the Russell 2000 index of small-cap companies also saw a rally this week.

The S&P 500 climbed 1.97% to end the session at 6,932.30 points.

The Nasdaq climbed 2.18% to 23,031.21 points, while the Dow (.DJI) jumped 2.47% to 50,115.67 points, marking its highest close ever.

Nine of the 11 S&P 500 sector indexes climbed, with information technology (.SPLRCT) leading the way, up 4.1%, followed by a 2.84% rise in industrials (.SPLRCI).

The S&P 500 energy sector index (.SPNY) hit a record high, alongside gains in industrials and consumer staples.

For the week, the Dow added 2.5%, the S&P 500 lost 0.1% and the Nasdaq slid 1.9%.

The S&P 500 was less than 1% below its record-high close set last week, and the Nasdaq was down 4% from its record-high close last October.

The CBOE volatility index  Wall Street’s fear gauge, dropped for the first time in three days.

Over half of S&P 500 companies have reported their quarterly results, and roughly 80% topped analysts’ expectations, according to LSEG data, well above the typical beat rate of about 67%.

Molina Healthcare dropped 25.5% after the health insurer projected its 2026 profit to be less than half of Wall Street’s expectations.

Roblox  rallied almost 10% after the video game platform projected fiscal 2026 bookings above estimates.

Reddit  fell 7.4%, even after the social media platform forecast first-quarter revenue above analysts’ estimates.

Advancing issues outnumbered falling ones within the S&P 500 by a four-to-one ratio.

The S&P 500 posted 88 new highs and 13 new lows; the Nasdaq recorded 214 new highs and 181 new lows.

Volume on U.S. exchanges was steady, with 20.1 billion shares traded, compared with an average of 20.5 billion shares over the previous 20 sessions.