AI Crypto Tokens Dip Amid Nvidia's Stock Surge: A Temporary Tumble?
Summary:
Crypto tokens related to artificial intelligence suffered a drop amid a surge in Nvidia's shares, however, the downturn is expected to be temporary. Nvidia, a producer of computer chips used by AI companies, saw its stock price increase by 22% over five trading days. Despite this, several major AI crypto tokens including Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX) experienced a decline over the past week. Crypto traders predict a change in this pattern during a potential downturn in Nvidia's stock price. The article also points out that Nvidia, despite recent gains, is not predicted to outperform Bitcoin over the next decade.
Crypto tokens associated with artificial intelligence experienced a drop within the span of a day, parallel to the Nvidia's shares spike of over 7% on May 28. Although there has been a slump, cryptocurrency trader Matthew Hyland expressed that this temporary descent might not be prolonged. Nvidia, a company known for manufacturing computer chips commonly utilized by AI businesses in their models, is considered by crypto traders as an inference to the possible movement of AI tokens. The stock performance of Nvidia is perceived as a barometer of the market's sentiment for AI.
Nvidia's stock escalated by 22% in the previous five business days, closing on May 28 at a record high of $1,140. The company's stock has demonstrated an impressive yearly growth, nearly 137% according to data from Google Finance. Nvidia experienced a slight increase of 0.82% to $1,150 during after-market trading.
The tech giant reported an upsurge of 18% from Q4 2023 in the first quarter, with revenue soaring by 262% from Q4 2022, hitting $26 billion which exceeded the analyst predictions by approximately 5.6%.
However, the week wasn't equally remarkable for some of the leading AI crypto tokens categorized by market capitalization like Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX). They reported a drop of 8.14%, 11.39%, and 11.19% respectively in the past seven days as analysed by CoinMarketCap.
Despite not experiencing an upward trend like Nvidia, some crypto traders still anticipate that the scenario may revert during a downturn in Nvidia's stock price. Triplexx, an anonymous crypto trader, explained that a decline in Nvidia's stocks would negatively influence other technologies for a few days which in turn would affect the cryptocurrency regardless of the prevailing sentiment in the crypto market.
Investment strategist Lyn Alden observed on May 25 that Nvidia is one amongst the several stocks that have surpassed Bitcoin in terms of performance over a decade. As pointed out by The Kobeissi Letter, an investment of $10,000 in Nvidia in 1999 would have escalated to a staggering $25.3 million by May 24. Despite this remarkable upsurge, the overall crypto community is skeptical that Nvidia will outpace Bitcoin's gains in the coming decade. Cory Klippsten, CEO of Swan Bitcoin, insisted that Nvidia has a minimal chance of outperforming Bitcoin over the next decade.
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Published At
5/29/2024 4:25:15 AM
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