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.

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.

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.