*

Q2 GDP second estimate shows US economy grows 3%

*

CrowdStrike ( CRWD ) up after upbeat Q2 revenue

*

Apple ( AAPL ) gains after Citigroup ( C/PN ) selects company as top AI pick

*

S&P 500 +0.76%, Nasdaq +0.93%, Dow +1.10%

(Updated at 1:50 p.m. ET/1750 GMT)

By Johann M Cherian and Noel Randewich

Aug 29 (Reuters) -

Wall Street stocks rose and the Dow hit a record high on

Thursday following robust U.S. economic data, while artificial

intelligence chipmaker Nvidia ( NVDA ) slipped after its largely in-line

forecast failed to impress investors.

The U.S. economy grew faster than initial estimates due to

strong consumer spending, the Commerce Department reported,

supporting expectations the U.S. is likely to avoid a recession.

"Downward revisions to inflation accompanying an upward

revision to spending builds the case for a soft landing," said

Jeffrey Roach, chief economist for LPL Financial.

Nvidia's ( NVDA ) quarterly revenue forecast late on

Wednesday disappointed investors used to the chipmaker beating

expectations by massive margins in recent quarters.

Nvidia's ( NVDA ) stock dipped 3.2%, trimming its 2024 gain to 144%.

Notably, the Nvidia ( NVDA ) sell-off did not spread to other

AI-related stocks. Microsoft ( MSFT ) gained 1.9%, while

Google-owner Alphabet added almost 1%.

Broadcom ( AVGO ) and Advanced Micro Devices ( AMD )

each rose about 1%.

"It's too early to put the bear suit on for AI related

companies. We think there's still more upside," said Terry

Sandven, chief equity strategist at U.S. Bank Wealth Management.

"We see the AI revolution still in the relatively early innings

and that bodes well for tech names."

Apple ( AAPL ) rose 2.5% after Citigroup ( C/PN ) named the iPhone

maker its top AI pick.

The Dow Jones industrial average hit an all-time

high, while S&P 500 index was less than 1% below its July

record high close as expectations for a September interest rate

cut remained robust.

The S&P 500 was last up 0.76% at 5,634.92 points.

The Nasdaq Composite Index gained 0.93% at 17,718.61

points, while the Dow was up 1.10% at 41,542.10 points.

Of the 11 S&P 500 sector indexes, nine rose, led by

energy, up 1.49%, followed by a 1.46% gain in

industrials.

A Labor Department report showed marginally

lower-than-expected jobless claims for the previous week.

The June Personal Consumption Expenditures report, due on

Friday, could offer hints on the central bank's monetary policy

easing trajectory.

CrowdStrike ( CRWD ) gained 5.3% after the cybersecurity

company beat quarterly revenue estimates, while Dollar General ( DG )

slumped 30% after slashing its annual sales and profit

forecasts.

Advancing issues outnumbered falling ones within the S&P

500 by a 4.6-to-one ratio.

The S&P 500 posted 64 new highs and four new lows; the

Nasdaq recorded 81 new highs and 76 new lows.