Artificial Intelligence-focused crypto projects are surging higher in the wake of Nvidia’s (NVDA) impressive earnings report, capping off more than a month of gains for the sector as all things AI are trending on social media.
On Wednesday, Nvidia posted their fourth-quarter earnings report, which showed the company blew away expectations with revenues totaling $22.1 billion versus the expected $20.4 billion. The source of the surging revenue was the company's AI data center, which saw a fivefold increase in revenue in January compared to the previous year.
When asked about the newfound success, Nvidia founder and CEO Jensen Huang attributed it to increased global demand for generative AI, which helped cement the firm's standing in the market by boosting its market capitalization to $1.67 trillion, elevating it above Tesla as the world’s most traded stock.
“Accelerated computing and generative AI have hit the tipping point,” Huang said. “Demand is surging worldwide across companies, industries, and nations.”
On top of the performance of Nvidia, the February 15 announcement of OpenAI’s new text-to-video tool, Sora, also provided a boost to AI-related projects and led to the highest weekly trade volume for AI tokens in over a year, highlighting the appeal of the sector.
A look at the top 200 altcoins shows that among the biggest gainers over the past 24 hours are a host of AI-related projects, including SingularityNET (AGIX), Worldcoin (WLD), The Graph (GRT), Render (RNDR), Fetch.AI (FET), and Ocean Protocol (OCEAN).
Decentralized physical infrastructure networks (DePIN), like Helium (HNT), Filecoin (FIL), and AIOZ Network (AIOZ) are also trending higher as they help facilitate the operation of certain AI platforms and provide services like decentralized storage and AI computing.
Nvidia’s breakout performance also benefitted AI-focused stocks, including Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier for Nvidia, which experienced a 2.05% surge in morning trading on Wednesday.
Super Micro Computer (SMCI.O), which supplies server components, recorded an 11.42% gain during after-hours trading on Tuesday and saw another 6% jump following Nvidia’s report on Wednesday. Advanced Micro Devices (AMD), an Nvidia rival, saw its stock price rise 3%, while Broadcom (AVG.O) and Marvell Technology (MRVL.O), who are also chipmakers, gained more than 2% in after-hours trading.
The sudden surge in prices for multiple projects had many crypto traders celebrating on X, but the more experienced investors have warned that nothing goes up forever and parabolic moves rarely hold on to all the gains in one go. They cautioned that holders would be wise to realize some profits and wait for a correction before jumping into AI-related investments.
Today NY open will be important. I will try to close max scalps trades. $NVDA stocks are bound to fall and go on correction. This may impact #AI and #GamFi crypto coins for few days.
— Block_Diversity v.8 ™️ (@i_bot404) February 22, 2024
