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What Investors Should Know About AI Tokens Riding Nvidia Hype | video
It’s Tuesday, May 7, 2024. And this is Markets Daily A show where we get inside the minds of some of the smartest and most experienced investors, traders, analysts, researchers, CEO S’s and anyone with a smart or engaging take, I’m Jen Sani and the show today will be a little different. We don’t have a guest here. We’re getting into my head. I have a very good opinion on AI tokens and you will hear it in a few seconds. First, let’s take a look at what’s happening in the cryptocurrency markets this morning. They look very similar to how they looked. Yesterday morning Bitcoin and Ether are more or less in the same place where we left them. Bitcoin was at around $63,500 at 8 a.m. Eastern time and Ether was at around $3,100. Now, Bitcoin’s rebound is turning some of those bearish analysts bullish again. There are reports on Coin desk.com this morning that you can go read that say the rebound is driving demand for out-of-the-money strikes and these are strikes that are well above the going rate. They are between 70,000 and 100,000 dollars. So Bitcoin could hit $100,000 by the end of the year, we’ll just have to wait and see AI tokens lead the market recovery this morning as singularity network rendering and AI recovery outperforms Bitcoin by a very large margin . And these are the tokens that we will talk about on today’s show. Now, these tokens are rallying alongside NASDAQ-listed chipmaker Invidia, which hit a one-month high as excitement builds around the chipmakers’ upcoming earnings report. It will come later. This month, NVIDIA has truly become the poster child for all things AI and we have to address that when we hear news from Invidia, we often see a rally in AI tokens. But do retail investors know what these tokens do? Do they care about what they do or are they simply riding the AI wave to make quick money? I’m not sure what the answer is, but I want to give you all the information, the information you need or at least some information to start your research so you can make an informed decision if you are investing in AI tokens. Hitesh Malia is the founder of Dyor. He told Coindesk that AI coins will continue to have cyclical cycles and that they are directly correlated with the whole development of the AI side happening around us. Now, I want to be clear as we get into the show that there is no crypto token that has a direct correlation to NVIDIA. Now, if you’re going to invest in AI tokens, I hope you listen to this information, go out there, do your research, and make good decisions. Let’s talk about R and dr rendering first, this is the rendering network utility token which is a decentralized rendering solution based on GP U. This token has increased by almost 48% in seven days. I repeat, almost 48% in seven days. According to Coin Gecko, this is the largest gain among the top 100 cryptocurrencies by market value. Now, what is the rendering network? You might wonder that this is a peer to peer network that rents idle GP U power to content creators and AI applications. The token is used to pay for rendering jobs on the platform. So this token is used by people who are renting their power and for people who are renting power, the network hopes to make it easier for creators to get GP U power and render high definition graphics or train models of artificial intelligence and this allows them to pay a lower rate than the centralized GP U cloud. The rendering network has received support from Multi Coin Capital, the Solana Foundation, and more. Now let’s move on to Recover Artificial Intelligence and now Recover Artificial Intelligence hopes to decentralize and automate transactions on the web. It offers tools to build, deploy, and monetize AI services and enables the transformation of legacy systems for AI readiness without altering existing APIs. So it’s making things a little bit easier for companies that want to use this technology. According to Massari, the network is a series of software agents that can act on behalf of their owners. So agents have the ability to conduct research, trade and trade via An Isfet token has gained 22% in the past week. Going beyond the broader market, as I said before, this project was supported by outlier initiatives. DWF and others. Now, finally, Singleity Net is a network of artificial intelligence services accessible through a decentralized marketplace. The network allows people to create, modify and manage AI-related services such as model training and inference to deploy AI agents. Developers can charge users for using these AI services using the GIX A token. That token rose 24.5% for the week. Now let’s take a look, let’s look at the prices, you know they’ve outperformed the broader cryptocurrency markets. This morning a GIX costs 99 cents, the fet costs $2.40, and the render costs $10.70. If we broaden our discussion now and go back to NVIDIA, they will release their first quarter earnings on May 22nd. After the markets close, analysts expect AI tokens to continue to strengthen ahead of such a report. And Zacks Investment Research expected the company to have lackluster earnings per share of $5.49, up 403% year-over-year. Which begs the question: If you’re betting on NVIDIA, why aren’t you just buying shares? Why are you investing in these AI tokens? Although some of these projects look quite interesting. So go out there and invest responsibly. The last thing I’ll leave you with is Nvidia’s stock price. This morning it costs about $922. Good investment.