- Nvidia’s share price rose 15% in 5 days, prompting speculation about potential impact on AI crypto tokens
- Analysts believe Nvidia’s anticipated Q1 2024 earnings report on May 22 could influence movements of AI crypto tokens
- Several AI crypto tokens like Render, FetchAI, and SingularityNET saw significant price drops recently, leading to views that they may have bottomed out
Nvidia’s share price has seen a significant 15% increase over the past week after a brief slump, causing analysts to speculate whether this rally could also boost artificial intelligence (AI) crypto tokens that have struggled recently.
Nvidia’s Share Price Jumps 15% in 5 Days
The share price of Nvidia, one of the biggest producers of graphics processing units (GPUs), has recovered by 15% just this week. This has led analysts to speculate if bottomed-out AI crypto tokens will follow suit.
The Kobeissi Letter pointed out the major climb seen in Nvidia’s market cap over the past trading week, stating “The stock has jumped from a low of $756 to $880, adding $320 BILLION in market cap.”
Analysts Hope Nvidia Rally Will Boost AI Crypto Tokens
Even though AI crypto tokens have faced price drops across the board, analysts are hopeful that Nvidia’s strong performance will have a positive effect, as they claim was the case in the previous market cycle.
Pseudonymous crypto trader Crypto Stream explained that his base assumption for investing in AI tokens revolves around Nvidia’s performance. Nvidia’s anticipated Q1 2024 earnings report will be released publicly on May 22.
“Many TradFi investors are probably waiting for this data before making their next move. Don’t forget they felt a lot of FOMO when NVIDIA pumped non-stop,” Crypto Stream explained.
Meanwhile, pseudonymous crypto trader CryptoGodJohn told their 668,100 followers on Twitter that it should be an “exciting few weeks” leading into the Nvidia earnings.
“A lot of AI coins looking bottomed out here,” CryptoGodJohn added.
AI Crypto Tokens See Declines
Render (RNDR) is down 68.9% over the past 24-hours, while FetchAI (FET) dipped 61.2% and SingularityNET (AGIX) has declined 54.7% over the same time period, according to CoinMarketCap data.
Nvidia Share Price History
NVDA saw a recovery of 15% since the end of trading on April 19, when the stock closed at $762. By the end of the trading week on April 26, the share price had reached $877.
Within the past 24 hours alone, NVDA rose 6.18%, according to Google Finance data.
Previous Nvidia Earnings Boosted AI Crypto Tokens
AI crypto tokens experienced price jumps after Nvidia’s strong performance was released in its Q4 2023 earnings report in February.
On Feb 26, Cointelegraph reported that following Nvidia announcing breakout earnings, AI crypto tokens saw a surge in value. The firm announced revenue and earnings of $7.64 billion and $2.12 billion respectively in Q4 2023, representing increases of 53% and 78% compared with Q4 2022.
Just days before on Feb 22, it was reported that the total market cap of AI-based tokens swelled by over $9 billion to $17.8 billion since Nvidia’s quarterly earnings report, rising from $7 billion earlier in February.
Conclusion
Nvidia’s share price has rebounded over the past week, causing optimism that struggling AI crypto tokens could also be boosted if Nvidia delivers another positive earnings report on May 22. The previous Nvidia earnings release catalyzed significant jumps in AI token prices, so analysts are closely monitoring Nvidia’s stock movements and upcoming earnings report for potential effects on the AI crypto market.
