The Federal Reserve injected a strong stimulus into the artificial intelligence (AI) boom on Wednesday by lowering interest rates by 50 basis points.

As expected, artificial intelligence trading in the US stock market has become active again. As of Thursday's close, technology stocks rose by 2.56%, while the potential gains from artificial intelligence trading were even higher.$NASDAQ 100 Index (.NDX.US)$Surging by 2.56%, while the potential artificial intelligence trading has an even larger increase:$NVIDIA (NVDA.US)$,$Broadcom (AVGO.US)$And.$ASML Holding (ASML.US)$The stock prices surged by 3.97%, 3.9%, and 4.6% respectively, these companies are considered as an indispensable part supporting the infrastructure of ai.

Wedbush Securities analyst Dan Ives on Wall Street said that investors in AI trading in the US stock market should thank Fed Chairman Jerome Powell, as the risk appetite for tech stocks soared on Thursday.

In a report on Thursday, Ives said, "The Fed finally tore off the band-aid, cut interest rates by 50 basis points, and there is also a dot plot indicating a further 100 basis points rate cut in 2025. We believe this is a very bullish backdrop, favorable for the risk trading of the tech and AI revolution to enter 2025."

He said that the Fed's rate cut is a "missing piece of the puzzle," indicating that the green light for high-tech growth trading has been re-lit and will continue through the end of the year and 2025.

Previously, Ives has been inspired by the strong profit growth of the technology industry. He said that as software companies start to monetize AI in customer products and with the sustained frenzy of GPU purchases, there is still room for this excitement to grow.

"We believe that the technology supply chain is preparing for an unprecedented growth period. We estimate that there will be approximately $1 trillion in AI capital expenditure in the technology world over the next few years, which will drive the development of this growth period," he wrote.

Efs also stated that although AI trading is mainly concentrated in Nvidia and $Microsoft (MSFT.US)$, but other companies are also joining in.

Now we see many other technology giants joining the ranks of artificial intelligence, including$Oracle (ORCL.US)$,$ServiceNow (NOW.US)$,$Palantir (PLTR.US)$,$Salesforce (CRM.US)$and$Dell Technologies (DELL.US)$Please use your Futubull account to access the feature.$IBM Corp (IBM.US)$Please use your Futubull account to access the feature.$Apple (AAPL.US)$Please use your Futubull account to access the feature.$Advanced Micro Devices (AMD.US)$ 等。”He wrote.

Evans concluded that the dovish Fed should further cut interest rates, and the possibility of a soft landing in the economy is becoming increasingly likely. In addition, the combination of continuous soaring technology spending on AI and these factors means that there is still a lot of upside potential for AI trading.

"This ultimately confirms our view that this is the start of the 1995 internet moment, not the kind of moment like the 1999 tech bubble." he added.

Editor/Rocky