Nvidia's Surges 15% in Five Days: Impact on AI Crypto Tokens?
Discover how Nvidia's share price has risen by 15% this week, leading analysts to speculate on the potential rebound of AI crypto tokens.
Nvidia, a major producer of graphics processing units (GPUs), has seen its share price rise by 15% this week. This surge has led analysts to ponder whether AI crypto tokens, which have recently hit lows, might also rebound.
The Kobeissi Letter, a trading resource, expressed amazement in an April 27 post on X, highlighting Nvidia’s significant market cap increase over the past trading week:
“The stock has surged from a low of $756 to over $880, adding approximately $320 billion in market cap.”
While AI crypto tokens have generally experienced price declines, analysts are optimistic that Nvidia's strong performance could have a positive impact, similar to previous market cycles.
A pseudonymous crypto trader, Crypto Stream, shared in an April 26 post on X that their investment strategy regarding AI tokens is closely linked to Nvidia’s performance. Nvidia is set to release its anticipated Q1 2024 earnings report on May 22, which many traditional finance (TradFi) investors are awaiting before making significant moves.
Another pseudonymous trader, CryptoGodJohn, informed their 668,100 followers on X on April 27 that the upcoming Nvidia earnings report could lead to an exciting period ahead.
“Many AI coins seem to have bottomed out here.”
According to CoinMarketCap data, Render (RNDR) dropped by 6.89% in the last 24 hours, Fetch.AI (FET) by 6.12%, and SingularityNET (AGIX) by 5.47% over the same period.
The recovery in NVDA began after trading ended on April 19, when the stock closed at $762. By April 26, the share price had reached $877, marking a 15% increase.
Recent data from Google Finance shows that NVDA rose by 6.18% within the past 24 hours alone.
AI crypto tokens previously experienced price surges following Nvidia’s strong performance in its Q4 2023 earnings report released in February. The report revealed revenue and earnings of $22.1 billion and $12.3 billion, respectively, in Q4 2023, representing significant increases compared to the previous year. This led to a surge in the market cap of AI-based tokens shortly after the report's release.
