The blistering stock rally that’s made Nvidia Corp. one of the world’s three most valuable companies is based on a number of assumptions. One is that artificial intelligence applications made possible by its semiconductors will become features of the modern economy.

Large cloud-computing customers are continuing to spend heavily as they prepare to shift in 2025 to Nvidia’s next generation of GB200 liquid-cooled rack systems.

The artificial intelligence (AI) revolution is just heating up. To raise the stakes in this race, most tech companies with the necessary capital and resources have integrated AI into their existing products or developed new ones.

A Wall Street analyst initiated coverage of three semiconductor stocks with buy ratings, citing their exposure to the artificial intelligence boom.

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.