AI crypto tokens in for a party – Here’s how Nvidia’s 17% surge fits in
Nvidia Corp. shares rebounded after last week’s selloff, as major clients are increasing their investments in artificial intelligence. The move is a significant turnaround from last Friday’s 10% drop, the shares’ most challenging day in over four years. This decline was driven by concerns that the market had become overly optimistic about chipmakers, following Taiwan Semiconductor Manufacturing Co.’s revised expansion objectives.
Nvidia shares surge 17% in 5 days
The share price of NVDA, one of the largest producers of graphics processing units (GPUs), has experienced a 17% recovery this week. This has sparked speculation among analysts about the potential for a similar rebound in artificial intelligence (AI) crypto tokens that have reached their lowest point.
“This is absolutely insane: Nvidia stock, $NVDA, is now up a massive 17% from its low just 5 trading days ago,” trading resource The Kobeissi Letter wrote in an April 27 post on X.
According to the report, NVDA stock has jumped from a low of $756 to $880+. This means a $320 billion market cap increase. According to reports, NVDA and the semiconductor industry as a whole are experiencing a substantial spike.
This week, the Philadelphia Stock Exchange Semiconductor Index, also known as the SOX, has risen by 10%, outperforming the broader S&P 500 Index’s gain of 2.7% and the tech-heavy Nasdaq 100 Index’s jump of 4%.
On Wednesday, Nvidia announced its acquisition of Run.ai for a staggering $700 million. Run.ai provides developers with enhanced efficiency in using AI tools and offers insights into Nvidia’s future plans and areas of focus. Run.ai collaborates with Nvidia’s Cloud AI product, enabling businesses to effortlessly access an AI supercomputer directly from a web browser.
The shares are currently consolidating, indicating a potential buying opportunity at a price of 974. Meanwhile, investors eagerly anticipate Nvidia’s upcoming May 22 earnings report.
Before this week’s recovery, Nvidia shares had lost the gains made at Nvidia’s GTC conference for AI developers in March. In 2023, the stock experienced a significant increase of 239%. Despite a slight pullback last week, the stock has shown an impressive 70% increase year-to-date.
AI crypto tokens market performance
Despite the widespread price drops of AI crypto tokens, analysts remain optimistic about the potential positive impact of Nvidia’s strong performance, as they observed in the previous market cycle.
AI tokens are a type of crypto coin designed to support different AI projects, applications, and services. These include decentralized AI marketplaces, AI-powered trading algorithms, and AI-driven decentralized autonomous organizations, among others. These tokens can be used for transactions on the AI platform or to give holders governance rights.
CoinMarketCap data shows that Render (RNDR) is down 6.22% over the last 24 hours, while Fetch.AI (FET) fell 5.80% and SingularityNET (AGIX) has slipped 4.84% over the same time period.
Source: CoinMarketCap
However, Near Protocol (NEAR) is up 21.78% in the last 7 days. However, it fell 3.32% in the last 24 hours. In addition, Theta Network (THETA) is up 7.47% in the last 7 days. However, it still trades at a 5.84% low in the last 24 hours.
The current movement of Nvidia’s stock can be traced back to late 2023. During that period, shares experienced a breakout from a double-bottom base, reaching a buy point of 476.09 with significant trading volume prior to the release of third-quarter results in November.
Nvidia has established itself as a pioneer in the industry. The company was at the forefront of developing graphics processors, which are widely recognized for their significant impact on computer gaming. In addition to gaming, Nvidia chips have found applications in several industries, including health care, automobiles, and robotics.
In March 2023, there was a significant advancement in generative AI with the introduction of OpenAI’s ChatGPT. Nvidia’s CEO, Jensen Huang, believes that Nvidia’s AI-capable supercomputer has played a significant role in the advancement of AI, comparable to the impact of the iPhone on the smartphone industry.
