NEW YORK – As the US stock market soars to fresh record highs this week, investors say a powerful corporate profit engine, a reset in high-flying AI shares and still-reasonable valuations can further fuel the rally.

The benchmark S&P 500 on Tuesday posted its first record closing high in two months. In between, swoons in high-flying semiconductor and other technology shares weighed down indexes, but stocks gained sharply in recent days, boosted by signs of calming US-Iran tensions.

Markets are also in the midst of another quarterly earnings season that has surpassed lofty expectations, driven by massive spending on AI-related infrastructure. That profit optimism should provide critical fundamental support for equities in the months…