Nvidia, one of the leading producers of graphics processing units (GPUs), has seen a 15% recovery in its share price this week. This has sparked speculation among analysts about whether AI crypto tokens, which have hit a low point, will also see a similar rebound.
The Kobeissi Letter, a trading resource, expressed astonishment at this development in a post on April 27. It highlighted the significant increase in Nvidia’s market capitalization over the past trading week, with the stock rising from $756 to over $880 and adding approximately $320 billion.
Despite the decline in prices of AI crypto tokens across the board, analysts remain hopeful that Nvidia’s strong performance will have a positive impact, as it did in the previous market cycle. Crypto Stream, a pseudonymous crypto trader, explained in a post on April 26 that their investment assumptions revolve around Nvidia’s performance. The anticipated release of Nvidia’s Q1 2024 earnings report on May 22 is expected to influence the decisions of many traditional finance investors.
Another pseudonymous crypto trader, CryptoGodJohn, shared their excitement with their 668,100 followers on April 27, stating that the coming weeks leading up to Nvidia’s earnings report should be interesting. They also noted that many AI coins appear to have reached a low point.
According to CoinMarketCap data, Render (RNDR) has experienced a 6.89% decrease in the past 24 hours, while Fetch.AI (FET) and SingularityNET (AGIX) have both seen declines of 6.12% and 5.47% respectively.
Since the end of trading on April 19, NVDA has seen a 15% recovery, with the share price rising from $762 to $877 by the end of the trading week on April 26. In the past 24 hours alone, NVDA has increased by 6.18% according to Google Finance data.
The strong performance of Nvidia in its Q4 2023 earnings report in February had a positive impact on AI crypto tokens. Following the announcement of breakout earnings, these tokens experienced a surge in value. Nvidia reported revenue and earnings of $22.1 billion and $12.3 billion respectively in Q4 2023, representing significant increases compared to the previous year.
Just days before Nvidia’s earnings report, the total market capitalization of AI-based tokens had risen by over 9% to $17.8 billion. This marked a substantial increase from $7 billion earlier in the month.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment or trading decisions.