The chip maker's shares have tended to pop after the Federal Reserve cuts interest rates, judging by data stretching back to 1999.

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.

AI chipmakers Nvidia and Advanced Micro Devices led the tech stock rally Thursday, following the Federal Reserve’s sizable 50 basis point interest rate cut.