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By Johann M Cherian and Sukriti Gupta

Feb 26 (Reuters) - The tech-heavy Nasdaq led Wall Street's main indexes higher on Wednesday as chip stocks rebounded ahead of Nvidia's results that are crucial to illuminating future demand for AI.

At 09:58 a.m. ET, the Dow Jones Industrial Average .DJI rose 117.59 points, or 0.27%, to 43,738.75, the S&P 500 .SPX gained 31.42 points, or 0.53%, to 5,986.67 and the Nasdaq Composite .IXIC gained 155.11 points, or 0.82%, to 19,181.49.

Eight of the S&P 500's 11 sectors traded higher, with technology stocks .SPLRCT rising 1.2%.

AI chip leader Nvidia NVDA.O gained 3.3%. Its quarterly results and forecasts, expected after markets close, are likely to set the tone for artificial intelligence stocks that have dominated Wall Street.

The launch of low-cost AI models from China's DeepSeek had rattled the industry in January and raised questions around Big Tech's heavy investments into the technology.

Chip peers Broadcom AVGO.O and Advanced Micro Devices AMD.O also rose, driving the broader semiconductor index .SOX 2% higher.

"The demand for (Nvidia's) chips remains very, very high but unfortunately, investor expectations might be even higher," said Sam Stovall, chief investment strategist at CFRA Research.

Megacaps were mixed, with Meta Platforms META.O up 2.2% and Apple AAPL.O down 1.5%. Tesla TSLA.O rose 0.6% a day after the electric-vehicle maker's market value fell below $1 trillion.

Super Micro SMCI.O jumped 14.7% after the chip company filed long-delayed annual and quarterly reports.

Since last week, a series of data releases, including Tuesday's weak consumer sentiment print, has hinted that the world's largest economy might be stalling despite inflation remaining high, keeping investors on the edge.

The S&P 500 and the Nasdaq logged their biggest four-day declines since September on Tuesday, also due to weakness in tech stocks, after an analyst report hinted at overcapacity in AI infrastructure.

However, a Reuters poll showed strategists still expect the S&P 500 to finish 2025 about 9% higher than current levels, although market volatility will persist.

On the fiscal front, President Donald Trump's $4.5 trillion tax-cut and border security agenda will be sent to the U.S. Senate after passing the Republican-controlled House of Representatives.

"Keeping the tax cuts is what... many on Wall Street want, because should the tax rates revert, then that would end up taking more money out of the system," Stovall said.

Traders expect the Fed to deliver its first interest rate cut in July, according to data compiled by LSEG.

In the latest on global trade, Trump ordered a probe into potential new tariffs on copper imports, sending prices of the red metal higher. Phoenix-based copper miner Freeport-McMoran FCX.N jumped 3.6%.

General Motors GM.N rose 7% as the automaker said it would increase its quarterly dividend by 25% and undertake a new $6 billion share buyback program.

Intuit INTU.O shares rose 12.3% after the TurboTax maker forecast third-quarter revenue above Street estimates.

Advancing issues outnumbered decliners by a 1.99-to-1 ratio on the NYSE and by a 2.25-to-1 ratio on the Nasdaq.

The S&P 500 posted 6 new 52-week highs and one new low while the Nasdaq Composite recorded 17 new highs and 85 new lows.

(Reporting by Johann M Cherian and Sukriti Gupta in Bengaluru; Editing by Devika Syamnath)

((johann.mcherian@thomsonreuters.com;))