News
Nvidia’s Earnings Report Is Poised to Send AI Crypto Tokens Skyrocketing — Here’s What You Need to Know
As Nvidia prepares to release its highly anticipated earnings report this week, both the traditional finance (TradFi) and cryptocurrency markets are bracing for the impact. The chip giant’s performance is expected to have far-reaching implications, particularly for AI tokens in the crypto space. Here’s what you need to know about Nvidia’s earnings and their potential ripple effects on the market.
Nvidia earnings: what to expect
Nvidia (NVDA), the leading AI chip maker, will announce its earnings on Wednesday. Investors around the world are eagerly awaiting this report, anticipating another quarter of robust earnings and revenue growth fueled by growing demand for artificial intelligence.
With a market capitalization of more than $2.38 trillion, Nvidia’s stock price has skyrocketed to $953, marking a 200% increase over last year and nearly 100% year to date.
Analysts predict that Nvidia’s sales could quadruple in the April 2024 quarter to $24.6 billion, with earnings potentially quintupling to $5.60 per share. Company guidance estimates sales at $23.5 billion to $24.5 billion. This impressive growth is a testament to the growth power of Nvidia’s AI chips, with the stock closing Tuesday at a record $953.86.
However, Bloomberg consensus data suggests so Nvidia earnings from the previous quarter likely increased by more than 400%, with a 242% increase in revenue. For the second quarter, analysts expect revenue growth of around 100% and earnings expansion of more than 120%.
Impact on the cryptocurrency market
Nvidia’s earnings report is expected to significantly influence the cryptocurrency market, especially AI tokens. AI tokens are digital assets that support AI-based projects, applications, and services, such as decentralized AI markets, AI-based trading algorithms, and AI-driven decentralized autonomous organizations.
Best AI tokens like Near Protocol (NEAR), Rendering (RNDR)The Graph (GRT) and Injective (INJ) are expected to see a price increase in response to Nvidia’s strong performance. These tokens are not only used for transactions within AI platforms, but also grant governance rights to their holders.
As Nvidia’s positive earnings outlook boosts confidence, AI tokens have already entered the green zone of trading, indicating growing interest and optimism from investors.