The optimism didn't extend to the Dow, however, which dipped more than a tenth of a percent, while the S&P added nearly six-tenths and the tech-heavy Nasdaq climbed one-and-a-quarter percent - closing just 0.4% below its record closing high registered back in November of 2021.

Nvidia finished up more than 3.5% and hit a record high after Reuters reported it was building a new unit focused on designing custom chips, including for advanced AI processors.

But Adam Coons, chief portfolio manager at Winthrop Capital Management, said his firm actually sold shares Friday of the market-leading chipmaker.

"We're not selling it outright, we're just taking some of those gains that we've gotten and redeploying them. There's other places in the market where we could put money. Still like the stock, still like the company and where they're headed. We do believe in the AI story, but we just think right now the AI story is really a narrative-based investment theme and there's not a lot of proof about what the monetization can be. So that's just why we're a little bit cautious here and selling."

In other movers, Cloudflare rallied 19.5% after the web security company forecast upbeat first-quarter revenue and profit.

Shares of Expedia plunged nearly 18%, their biggest single-day drop in nearly four years, after the online travel firm said it expected 2024 revenue growth to moderate.

PepsiCo fell more than 3.5% after its fourth-quarter revenue fell short of estimates as multiple price increases crimped demand for its juices and Lay's potato chips.

And Pinterest shares sank 9.5% after it forecast first-quarter revenue largely below Wall Street estimates.