Coinspeaker
AI Tokens Soar as Nvidia’s Earnings Loom: What’s Driving This Buzz?
Over the past week, artificial intelligence-based crypto assets have been seeing their values rise significantly. However, the trend looks to be linked to an upcoming earnings report by tech giant Nvidia.
Nvidia is poised to publish its Q2 earnings report any moment from now, and AI tokens such as Near Protocol, Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have all recorded massive gains unlike the majority of the wider crypto market.
AI Tokens Outperform Crypto Wider Market
Coming in with the most impressive surge was FET, the token of the Artificial Superintelligence Alliance, a consortium of Fetch.ai, Ocean Protocol, and SingularityNET. Over the last week, the FET token saw a nearly 70% gain to reach $1.39 on August 26. That is, according to a Monday X post from onchain analytics platform Lookonchain.
Render is another token in this category that saw a remarkable leap. As CoinGecko data suggests, RENDER has gained around 40% in the last seven days, bringing it to $6.45 as of publication.
NEAR, the native token of layer-1 network Near also surged 35% over the past week and has now hit a monthly high of $5.20. Bittensor (TAO), on the other hand, comes in with a 26% weekly gain that puts its price at over $350 as of press time.
It might be worth noting that many tokens across the crypto market are still struggling to regain the losses from the early August crash. However, most major AI tokens have now made full recovery and are well on their way for even more gains.
Connection to Nvidia
As noted above, the recent gains of these AI-based assets may be linked to Nvidia earning report, widely acclaimed as one of the “most important tech earnings reports” of the year. The report will go live on Wednesday, August 28, even as Nvidia releases its second-quarter results.
Meanwhile, Dan Ives from Wall Street’s tech bull Wedbush Securities has explained the connection between Nvidia and AI assets. In a recent interview with Fortune, Ives noted that there is no doubt about the tech bull market being driven by demand for new data centre capacity. According to him, this is necessary to power the growing list of AI chatbots that have continued to come up in recent years. His statement reads in part:
“There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia.”
Mike Smith, a portfolio manager at Allspring Global Investments, shares a similar sentiment. Smith recently told Reuters that “Nvidia is the zeitgeist stock today.”
About the highly-anticipated earnings report, there is nothing but positive expectations. Nvidia’s revenue soared 18% in Q1 from Q4 2023 and surged 262% from the same period a year ago.
AI Tokens Soar as Nvidia’s Earnings Loom: What’s Driving This Buzz?
