Surge in Nvidia Shares Sparks Hope for Recovery in AI Crypto Tokens
Summary:
Nvidia Corporation, a leading GPU manufacturer, has seen a 15% rise in its share price, leading to speculation about a recovery in "bottomed out" AI crypto tokens. The surge in Nvidia's market cap has sparked interest among financial analysts, marking an essential point for many traditional finance (TradFi) investors. Despite the current downward trend of crypto tokens like Render, Fetch.AI, and SingularityNET, experts hope for a similar upward pattern reflecting on these AI tokens. The anticipation is partly tied to the upcoming release of Nvidia's Q1 2024 earnings report, which may influence the crypto market.
Nvidia Corporation (NVDA), a leading manufacturer of graphic processing units (GPUs), witnessed a 15% surge in its share price this week. This sudden rise has ignited speculation among financial analysts, who ponder if AI crypto tokens that have hit rock bottom will also follow the same upward trajectory. The Kobeissi Letter, a notable trading resource, expressed astonishment over the significant increase in Nvidia's market value this week, stating that the company's stock has spiraled from a low $756 to over $880, which represents about a $320 billion hike in market capitalization.
Despite the universal dip in the price of AI crypto tokens, financial experts believe Nvidia's exceptional show could potentially pull these tokens from their slump, a pattern that reflected in the last market cycle. Crypto Stream, a well-known anonymous cryptocurrency trader, stated on April 26 that his ground assumption for investing in AI tokens is significantly influenced by Nvidia's performance. The company is set to publicize its predicted Q1 2024 financial report on May 22, which could be a crucial factor for many traditional finance (TradFi) investors.
Echoing this sentiment, another pseudonymous cryptocurrency trader, CryptoGodJohn, told his 668,100 followers on X social media platform that the lead-up to Nvidia's financial reporting could be very interesting. He further noted that many AI coins appear to have bottomed out.
Crypto tokens like Render (RNDR), Fetch.AI (FET), and SingularityNET (AGIX) have suffered a downward trend over the last 24 hours, decreasing by 6.89%, 6.12%, and 5.47% respectively, according to CoinMarketCap data.
Since April 19, when NVDA shares closed at $762, the stock price has gone up by 15%. On April 26, the stock had hit $877. Google Finance data indicates a 6.18% increase in the stock over the past 24 hours.
The price of AI crypto tokens climbed following Nvidia's impressive Q4 2023 financial report issued earlier in February. A report by Cointelegraph on February 26 stated that after Nvidia disclosed stellar earnings, AI crypto tokens experienced a value surge. The tech giant announced revenues and profits of $22.1 billion and $12.3 billion respectively for Q4 2023, denoting increases of 265% and 769% in comparison with Q4 2022.
Within days of this, on February 22, it was reported that AI-based tokens' total market capitalization had seen a 9% rise to $17.8 billion since Nvidia released its quarterly report, rising from $7 billion earlier that month.
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Published At
4/27/2024 8:53:20 AM
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