Nvidia’s stock historically has made dramatic moves in the year after initial Fed interest-rate cuts, and it has outperformed the S&P 500 on average when looking at all rate cuts since the IPO.

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%.

Even with it well off its record level, Nvidia stock is still higher by over 140% year to date. Last week, after a meeting at the White House between top tech leaders and the Biden administration, Huang told reporters that a new industrial revolution is ...

Shares of NVIDIA Corp. NVDA slipped 1.92% to $113.37 Wednesday, on what proved to be an all-around rough trading session for the stock market, with the S&P 500 Index SPX falling 0.29% to 5,618.26 and Dow Jones Industrial Average DJIA falling 0.25% to 41,503.10.

Nvidia has led the S&P 500 ( ^GSPC -0.29%) higher this year amid frenetic interest in artificial intelligence (AI). The stock has surged 136% since January, and Wall Street analysts forecast median upside of 30% from the current share price of $115. But betting on a single AI stock is a bad strategy.

Nvidia's huge stock rally is still exerting an outsized influence over the S&P 500 index , reinforcing concerns that broader markets could be hurt if the chipmaking giant's fortunes turn.

Nvidia stock dipped on Monday, giving back some of last week’s gains as the semiconductor giant’s stretch of stock volatility continued.