The Dow climbed 0.2%, the S&P 500 added eight tenths of a percent and the Nasdaq jumped more than a percent.

AI chip maker Nvidia gained four percent and closed above $2 trillion in market value for the first time.

Rival Advanced Micro Devices hit another record as did the Philadelphia semiconductor index.

Simplify Asset Management Chief Strategist Michael Green said some investors are ditching their broader market focus to plow more money into these hot names.

"I'd suggest that we're seeing the market narrow as people increasingly focus on these AI related stocks. We've actually seen that in a deterioration of flows into the market in terms of broad equity ETF, so less buying of the Vanguard Total Market Index for example, and more buying of, say, the technology sector or of individual companies like Nvidia, AMD, etc. I just suggest that people are now basically trying to say 'I get the joke, this is all about AI,' and that in turn becomes self-reinforcing as people put more money to work in these names, drives their prices higher drives, drives further sentiment shifts."

Other stocks on the move included Dell Technologies which skyrocketed 32% after the personal computer maker forecast annual revenue and profit above Wall Street estimates, and said it was benefiting from the AI boom.

And shares of Spirit AeroSystems jumped 15% after Boeing offered to buy the airplane parts makers. Boeing slid 2%.