Shares of the major American chipmaker Nvidia (NVDA) made waves in premarket trading on Thursday, following the announcement of significantly stronger-than-forecast earnings for Q2. Analyst predictions were pleasantly outdone, with Nvidia reporting earnings per share (EPS) of $2.7 against a projected $2.08, and revenues reaching $7.19 billion, well above an expected $6.53 billion.
Unsurprisingly, this sparked an immediate growth spurt in NVDA stocks, which opened approximately 6% higher than their closing value on Wednesday. This is the latest peak in an impressive upward trend seeing NVDA climb more than 230% year-to-date, with the sharp ascent spurred by a bullish view on artificial intelligence (AI) technology and Nvidia’s standing as a leading AI chip provider.
In the wake of Nvidia’s revealing earnings report, investors and tech aficionados alike are keen to see whether this ripple effect will extend to AI-related crypto tokens such as Fetch.ai (FET), The Graph (GRT), Injective (INJ), Render Token (RNDR), and SingularityNET (AGIX). These tokens did briefly surge following the report, although this was a fleeting spike. Nonetheless, compared to the beginning of the year, cryptocurrencies in AI-focused projects have seen considerable growth. For instance, FET alone has grown in value by over 130%. In contrast, Bitcoin (BTC) has only increased by just under 60%, with Ethereum (ETH) just below a 40% rise.
The discussion doesn’t stop here. More elements of the crypto landscape might also be in a prime position to capitalize on the optimistic aura surrounding AI. According to CoinDesk, companies such as Applied Digital (APLD), Iris Energy (IREN), Hut 8 (HUT), and Hive (HIVE), are now adjusting their operations to supply computational power to AI. This strategic shift has been positively received by the stock market, hinting this could be a fruitful avenue for future growth.
However, while AI’s increasing importance in our technological landscape and its potential implications for crypto remain clear, navigating the unpredictability of digital currency markets is a continual challenge. Will AI-focused crypto tokens be able to sustain momentum and record healthy growth? Only time will tell, but the numbers so far are promising, demonstrating a growing union between cutting-edge technology and digital finance.
Source: Cryptonews
