Artificial intelligence-linked cryptocurrency tokens have experienced a decline in the past 24 hours, despite a 7% surge in Nvidia’s share price on May 28. However, a crypto trader believes that this downturn will not last indefinitely. Matthew Hyland, the trader, stated in a May 28 post that although Nvidia is currently surging, AI coins are relatively quiet, but this situation is not expected to persist.
Nvidia is a producer of computer chips that AI companies are increasingly utilizing to power their AI models. Crypto traders view the performance of Nvidia’s stock as an indicator of how AI tokens may behave, with the company’s performance serving as a gauge of the market’s sentiment towards AI.
According to Google Finance, Nvidia has seen a significant increase of 22% in the past five trading days, closing at a record high of $1,140 on May 28. The stock has also experienced a year-to-date growth of nearly 137%.
In after-hours trading, Nvidia saw a slight increase of 0.82% to $1,150.
Nvidia’s first-quarter revenue showed an 18% increase from the previous quarter and a 262% surge from the same quarter of the previous year, reaching $26 billion. This surpassed analyst estimates by approximately 5.6%.
In contrast to Nvidia’s positive performance, several of the largest AI cryptocurrency tokens by market capitalization have experienced declines over the past week. According to CoinMarketCap, Render (RNDR), Fetch.ai (FET), and SingularityNET (AGIX) have respectively declined by 8.14%, 11.39%, and 11.19% in the past seven days.
Despite the AI cryptocurrency tokens not following the upward trend, some crypto traders believe that this may change if Nvidia’s stock price experiences a downturn. A pseudonymous crypto trader known as Triplexx claimed in a May 28 post that once Nvidia starts to sell off, it will likely impact other mega-cap tech names for a few days. This, in turn, will influence the sentiment in the crypto market.
On May 25, investment strategist Lyn Alden pointed out that Nvidia is one of the few stocks that have outperformed Bitcoin over the past decade. Additionally, The Kobeissi Letter, a trading resource, stated that a $10,000 investment in Nvidia in 1999 would be worth $25.3 million as of May 24.
However, despite these achievements, the broader crypto community does not anticipate that Nvidia will yield the same level of gains as Bitcoin over the next ten years. Swan Bitcoin CEO Cory Klippsten claimed that there is a “near zero chance” of Nvidia outperforming Bitcoin in the long term.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions, as every move involves risk.