Wall Street is projected to rise, with the S&P 500 set to hit a new record after the Federal Reserve announced a rate cut. Key stocks, including Microsoft, Meta, and Alphabet, showed premarket gains.

U.S. stock indexes stormed back from big early drops to finish higher, led by a handful of influential Big Tech companies

The U.S. stock market’s reaction to Nvidia’s earnings report illustrates how unrealistic investors are about the tech giant’s future growth rate. Nvidia reported second-quarter revenue that was more than double the year-ago quarter and was even better than the consensus Wall Street expectation.

Thus far, semiconductor behemoth Nvidia ( NVDA 5.38%) has been the undisputed beneficiary of the rise of AI. But according to select Wall Street pundits, two other artificial intelligence stocks offer truly eye-popping upside -- up to 1,050%!

The central bank's decision to slash borrowing costs by 50 basis points is easing concerns about the economy. That could lift the AI trade.

It's been quite the year for artificial intelligence (AI) chipmaker Nvidia ( NVDA 4.57%), which has seen its stock rise more than 161% year to date. Over the last five years, Nvidia's stock is up by more than an astounding 2,560%.