AI-Linked Cryptocurrency Tokens Rise After Nvidia Identifies ‘Tipping Point’

February 26, 2024

By Anjali Kochhar

Giant chipmaker Nvidia (NVDA) exceeded its already high fourth-quarter earnings projections, lifting both the broader equity markets and AI-related tokens.

According to Nvidia, its fourth-quarter earnings per share stood at $5.16, surpassing the average analyst estimate of $4.59 per share, as per FactSet data. Additionally, the chipmaker reported revenue of $22.1 billion, exceeding Wall Street’s projection of $20.4 billion.

Following Nvidia’s earnings, AI Tokens noticed an increase. While FetchAI’s (FET) and Render’s (RNDR) stocks are up over 10% and 8%, respectively, SingularityNet (AGIX) was up more than 20%. According to data from CoinGecko, the total market capitalization of AI tokens has exceeded $16.5 billion.

The CoinDesk 20 (CD20), a benchmark for the largest and most liquid cryptocurrencies, has decreased by 2.7% in contrast.

“Generative AI and accelerated computing have reached a tipping point. Global demand is rising across businesses, sectors, and countries,” according to Jensen Huang, the founder and CEO of NVIDIA.

Nvidia also predicted sales for the first quarter of $24 billion, exceeding experts’ projection of $22.2 billion.

The beat coincides with shares of the business that makes the chips that have powered the AI revolution rising more than 200% over the past year, surpassing the values of IT giants Amazon and Google to reach a market cap of about $1.7 trillion at one point. Because of how strong the surge has been, Goldman Sachs has dubbed it “the most important stock on planet earth.”

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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