Nvidia’s Earnings Report Poised to Skyrocket AI Crypto Tokens—Here’s What You Need to Know
The post Nvidia’s Earnings Report Poised to Skyrocket AI Crypto Tokens—Here’s What You Need to Know appeared first on Coinpedia Fintech News
As Nvidia prepares to release its highly anticipated earnings report this week, both traditional finance (TradFi) and cryptocurrency markets are bracing for 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’s Earnings: What to Expect
Nvidia (NVDA), the leading AI chipmaker, is set to announce its earnings on Wednesday. Investors worldwide are eagerly awaiting this report, anticipating another quarter of robust earnings and revenue growth fueled by surging AI demand.
With a market cap exceeding $2.38 trillion, Nvidia’s share price has skyrocketed to $953, marking a 200% increase over the past year and nearly 100% year-to-date.
Analysts predict that Nvidia’s sales may have surged nearly fourfold in the April 2024 quarter, reaching $24.6 billion, with earnings potentially up fivefold to $5.60 per share. The company’s guidance estimates sales between $23.5 billion and $24.5 billion. This impressive growth is a testament to the scaling power of Nvidia’s AI chips, with the stock closing at a record $953.86 on Tuesday.
However, Bloomberg consensus data suggests that Nvidia’s prior-quarter earnings likely increased by over 400%, with revenue soaring by 242%. For the second quarter, analysts forecast approximately 100% revenue growth and earnings expansion exceeding 120%.
Impact on the Crypto Market
Nvidia’s earnings report is expected to significantly influence the cryptocurrency market, particularly AI tokens. AI tokens are digital assets supporting AI-based projects, applications, and services, such as decentralized AI marketplaces, AI-powered trading algorithms, and AI-driven decentralized autonomous organizations.
Top AI tokens like Near Protocol (NEAR), Render (RNDR), The Graph (GRT), and Injective (INJ) are anticipated to see a price surge 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 trading zone, indicating growing investor interest and optimism.
