Key Highlights

● Doximity climbed to $30.50 on Friday.

● Doximity Ask led US-based models in the NOHARM benchmark.

● The test focuses on whether AI advice could harm patients.

● Software stocks led a rebound from Thursday's selloff.

Doximity (NYSE:DOCS) climbed to $30.50 on Friday, according to market data, after the company highlighted a benchmark result for its artificial-intelligence tool. Co-founder and chief executive Jeff Tangney said the company was proud that Doximity Ask had been the top-performing US-based model in the NOHARM benchmark.

NOHARM, as its name suggests, focuses on whether AI systems give medical advice that could harm patients. For a tool that doctors use in clinical settings, safety and accuracy matter more than speed or flair, so results on a harm-focused test are closely watched in the field.

What Doximity does

Doximity runs a professional network for US medical professionals, often described as a LinkedIn for doctors. A large share of American physicians use the platform for tasks such as secure messaging, telehealth calls, faxing and keeping up with medical news. The company makes most of its money by selling Marketing and hiring solutions to pharmaceutical companies and health systems that want to reach doctors.

In recent years, Doximity has added AI tools aimed at saving clinicians time, including help with drafting documents and answering clinical questions. Doximity Ask is part of that push. The bet is that useful AI features will keep doctors engaged on the platform, which in turn supports the Advertising and recruiting business.

AI stocks bounce back

The timing helped. Artificial-intelligence stocks were recovering on Friday after a jolt on Thursday, when a report said that OpenAI's annualised Revenue was about $50 billion, roughly $20 billion below a figure that had circulated earlier. Software companies led the rebound, with Palantir (NASDAQ:PLTR), Microsoft (NASDAQ:MSFT) and Datadog (NASDAQ:DDOG) all climbing.

Health care was also one of the strongest S&P 500 sectors, helped by a biotech rally and by Humana's (NYSE:HUM) surge after Medicare's 2027 star ratings. Doximity sits at the intersection of health care and technology, two areas that were in favour on Friday.

The wider market

The S&P 500 rose 46.18 points to 7,811.54 on Friday, finishing about 7 points below its record close, and the Nasdaq Composite added 172.83 points to 27,366.17. The Dow gained 423.31 points to 51,654.95. On the NYSE, gainers outnumbered losers by about 1.65 to 1.

Software has had a strong week. Over five sessions, software stocks rallied while semiconductor shares fell, a shift one weekly review described as Leadership moving out of the AI trade. Michael Monaghan, portfolio manager at Founder ETFs, noted that "Chips have been this year's story", which makes the recent rotation toward software all the more striking.

The macro backdrop remains demanding. The 10-year Treasury Yield is near a 24-year high, the Federal Reserve raised rates in September for the first time since 2023, and the University of Michigan's preliminary October consumer sentiment index fell to a five-month low of 46.3.

Engagement and Revenue Data Will Test Doximity's AI Bet

Investors will watch for evidence that Doximity's AI tools are driving engagement and revenue, which should become clearer when the company next reports results. Further moves in AI stocks after Thursday's OpenAI scare will also matter. Macro catalysts include September consumer price data on Wednesday, October 14, bank Earnings from October 13 to 16 and the Fed meeting on October 27 to 28. Stock exchanges stay open on Monday, October 12, though the Bond Market observes Columbus Day.