Following a significant interest rate cut by the US Federal Reserve, tech stocks, particularly Nvidia and AMD, have seen a remarkable rally. Nvidia's stock surged by 5%, boosting the overall market and leading to a record high for the S&P 500. Analysts predict that AI-focused companies will benefit greatly from lower interest rates, with stocks like Broadcom, TSMC, and Arm Holdings also experiencing gains. The rate cut is viewed as 'rocket fuel' for the already thriving AI trade, and several chip stocks have received new buy ratings based on their AI prospects. Investors remain optimistic about the potential for continued growth in the tech sector as discretionary spending rises in response to the Fed's decisions.