The potential impact of NVIDIA earnings on the remarkable 400% surge of crypto AI tokens
Nvidia, the world’s biggest chip maker, is set to announce its Q4 2023 earnings on February 21, 2024. In this report, we will explore how the top-ranked Crypto AI tokens could potentially react to this news.
The top 5 crypto AI tokens, including Internet Computer (ICP), TheGraph (GRT), FetchAI (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN), have been closely mirroring the movements of Nvidia’s stock price since January 2023. It is possible that these tokens are on the brink of experiencing another significant price breakout.
The rise of Artificial Intelligence (AI) has had a profound impact on Nvidia’s stock price performance. With the emergence of OpenAI in January 2023, AI has captured the attention of investors worldwide. This AI frenzy has also spilled over into the cryptocurrency sector.
According to Crunchbase data, generative AI and AI-related startups raised nearly $50 billion in 2023. Clearly, AI has been at the forefront of global investing, and Nvidia, with its leading position in chip manufacturing, has been at the center of this trend.
Unsurprisingly, Nvidia has experienced substantial gains during the AI boom. From January 1, 2023, to February 20, 2024, the stock price of Nvidia (NVDA) has increased by 400%, going from $126 to $726. Analysts predict that Nvidia’s earnings per share for Q4 2023 will be around $4.18.
Nvidia is scheduled to release its official earnings report for Q4 2023 on February 21. It is worth noting that Nvidia has consistently outperformed market expectations in its last three earnings calls since January 2023. During this period, the impact of the AI frenzy has also been felt among crypto investors.
The valuation of the five largest crypto AI tokens, including ICP, GRT, FET, AGIX, and OCEAN, has seen significant growth since January 2023, closely mirroring the rise in Nvidia’s stock price. As shown in the chart below, the combined market capitalization of these tokens has grown from $1.8 billion to $10.2 billion between January 1, 2023, and February 20, 2024.
The 463% increase in the cumulative market cap of these tokens over the past year is in line with Nvidia’s 397% stock price surge during the same period. If Nvidia once again surpasses market estimates for its earnings in Q4 2023, it could provide further momentum to the rally of these crypto AI tokens.
In conclusion, the performance of Nvidia and the top-ranked Crypto AI tokens have been closely linked, showcasing the influence of AI on both the traditional and cryptocurrency markets. As we await Nvidia’s Q4 2023 earnings report, the market will be watching closely to see how these tokens respond.
