Chip-making technology giant Nvidia has reported its impressive Q1 earnings, showcasing a record-breaking quarterly revenue of $26 billion, surpassing market expectations by 5.5%. In addition to this, Nvidia has confirmed its plan to implement a ten-for-one forward stock split by June 7, 2024. As of now, the Nvidia stock ($NVDA) has surged by 2.6% after the market close.
In the crypto sphere, tokens related to artificial intelligence have experienced significant growth despite the overall subdued performance of the broader digital asset market, with the exception of recent gains in Ethereum.
The surge in AI token prices coincides with investor anticipation for Nvidia’s quarterly earnings report. Nvidia’s report is viewed as a pivotal event in a remarkably strong earnings season for major tech companies.
Looking forward, Nvidia has projected revenue of $28.0 billion for the second quarter of fiscal 2025, with a possible 2% variance. The company has also announced a remarkable 150% increase in its quarterly cash dividend.
Several large-cap AI tokens have shown substantial gains in the past 24 hours, according to data from CoinGecko. Tokens such as Fetch.ai’s FET, Render’s RNDR, Bittensor’s TAO, and SingularityNET’s AGIX have all seen growth ranging from 4% to 5%.
Moreover, AIOZ Network’s token (AIOZ) has surged by 7% following Nvidia’s listing of the project on its Accelerated Applications Catalog, enabling users to explore tools and services built on Nvidia platforms.
Furthermore, a merger between Fetch.AI, SingularityNET, and Ocean Protocol has been approved by their respective communities, merging $FET, $AGIX, and $OCEAN into $ASI with an anticipated total value of $7.5 billion.
Near Protocol’s native token (NEAR) has also witnessed a 2% gain. NEAR garnered attention when its co-founder spoke at an Nvidia conference earlier this year. NEAR emerged as the best-performing asset, with a minor 0.6% decrease amidst modest declines in both Bitcoin (BTC) and Ethereum (ETH).
Despite a recent market decline driven by positive regulatory developments in the US and lower bond yields as inflation concerns subside, AI-focused tokens have displayed resilience by posting gains.
Nvidia’s earnings report is anticipated to validate the excitement surrounding AI and potentially offer insights into the future of stocks. Nvidia’s shares have surged by over 200% in the past year, adding approximately $1.5 trillion in market value. With a market capitalization of $2.3 trillion, Nvidia’s weighting in the S&P 500 has risen from 2.2% to over 5% in the last year.
Major tech players like Microsoft, Alphabet, Amazon, and Apple have also reported strong earnings, indicating that the demand for AI services is driving revenue growth. These positive results have propelled the S&P 500 Index to reach new record highs.
Investors have high expectations for Nvidia to deliver exceptional earnings, as the company has consistently surpassed profit and sales estimates by at least 15% in recent quarters. However, there are some concerns regarding the rollout of a new chip named Blackwell later this year, which could potentially lead customers to delay purchases of its current products until the new chip is available.
Despite these challenges, the performance of AI-focused tokens underscores the increasing excitement surrounding the AI sector and its potential to revolutionize technology and finance in the future.
