The artificial intelligence (AI) market experienced a significant surge in crypto tokens and traditional stocks, buoyed by Nvidia’s impressive earnings report and a broader market correction. This surge, evident over the past month, saw several AI-based tokens and stocks record substantial gains despite market volatility.
AI tokens rally
AI-based crypto tokens witnessed notable gains on February 21st, with popular tokens such as Render (RNDR), The Graph (GRT), Fetch.ai (FET), and SingularityNet (AGIX) posting double-digit increases.
Notably, Render surged over 17% in 24 hours, while The Graph saw an 18% increase. This positive momentum follows a period where the market cap of AI tokens more than doubled within a month, reaching $17.8 billion.
Nvidia’s influence
The surge in AI tokens can be attributed to Nvidia’s exceptional fourth-quarter earnings report, surpassing market expectations. With revenues totaling $22.1 billion, Nvidia exceeded Wall Street’s projected $20.4 billion, driven significantly by a fivefold increase in AI data center revenue in January compared to the previous year.
Nvidia CEO Jensen Huang credited this success to the heightened global demand for generative AI, solidifying Nvidia’s position with a market capitalization of $1.67 trillion, surpassing Tesla as the world’s most traded stock.
The positive performance of Nvidia’s AI businesses reverberated across the AI crypto market, leading to new highs for several AI-focused stocks. Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier for Nvidia, experienced a 2.05% surge in morning trading on February 21st.
Similarly, Super Micro Computer, a server component supplier, witnessed an 11.42% increase in after-hours trading on February 20th. Dutch chip equipment manufacturer ASML also rose by 2.7% in after-hours trading.
OpenAI’s contribution
The bullish sentiment towards AI tokens was further bolstered by OpenAI’s recent announcement of its text-to-video tool, Sora, on February 15th. This development catalyzed the highest weekly trade volume for AI tokens in a year, underscoring the growing interest and confidence in AI-related technologies.
