Despite a broader market correction, various artificial intelligence (AI)-based crypto tokens and traditional stocks experienced positive growth on February 21. Following a significant increase in market cap, popular AI-based crypto tokens recorded double-digit gains. For instance, Render (RNDR), an Ethereum-based network that enables decentralized graphics processing unit rendering, surged by over 17% in the past 24 hours. The Graph (GRT), an indexing protocol for efficient blockchain data querying, also saw an increase of 18% in the same period. Additionally, Fetch.ai (FET) rose by 11%, while SingularityNet (AGIX) witnessed a 33% surge.
The total market cap of AI-based tokens has grown by more than 9% to reach $17.8 billion since Nvidia’s quarterly earnings report, representing a significant increase from $7 billion earlier in February. Moreover, AI tokens achieved their highest weekly trade volume in a year following the announcement of OpenAI’s text-to-video tool, Sora, on February 15.
The favorable market growth of AI tokens can be attributed to Nvidia’s latest fourth-quarter earnings report, which surpassed market expectations. The chipmaker reported revenues of $22.1 billion, exceeding Wall Street’s projected $20.4 billion. In January, Nvidia’s AI data center revenue quintupled compared to the same period in 2023.
Furthermore, Nvidia CEO Jensen Huang credited the boost in sales and revenue to the global surge in demand for generative AI. As a result, Nvidia’s market capitalization reached $1.67 trillion, surpassing Tesla as the world’s most traded stock.
The positive performance of Nvidia’s AI businesses also influenced the AI crypto market, leading to new highs for several AI-focused stocks. Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chipmaker and a supplier to Nvidia, experienced a 2.05% increase in stock price during morning hour trading on February 21. Similarly, Super Micro Computer, a server component supplier, saw an 11.42% rise in stock price during after-hours trading on February 20. Additionally, Dutch chip equipment manufacturer ASML witnessed a 2.7% increase in stock price during after-hours trading.