Nvidia’s Rally To Ignite Upsurge in AI Coins
Nvidia rallied to all-time highs today while other assets recorded outflows in the market. This comes after the company reported better-than-expected Q1 2024 earnings which saw revenues soar to $26 billion, an 18% jump in the last three months.
The company’s high earnings saw revenues soar 262% from last year as momentum builds around the artificial intelligence (AI) chip manufacturer. The stock prices rose 6% hours after the release before notching consistent flows to new highs.
Wider US stocks remain in the red zone as sentiments plunge in the last 24 hours. Meta stocks traded at $465, down 0.43% today while Coinbase and MicroStrategy plunged 5.46% and 6.25% respectively. Bitcoin (BTC) mining stocks also plummeted today amid hopes of a reversal of fortunes.
AI Coins To Rally?
Following expected Nvidia earnings, crypto users expected a rally in AI and big tech coins. This has been the trend with most tech stocks in recent months. Hours after the announcement saw a 2% rise in AI coins but gains were faded out by the larger market sentiment.
AI coins have plunged 4.3% in the last 24 hours with top assets posting high losses. Render (RNDR) is down 4% while The Graph (GRT) fell 5%. This outflow has wiped out a portion of gains from AI coins in the market. Although intraday trading saw a slight reversal, the bearish trend sparked by negative macroeconomic factors led to the status quo.
However, several crypto users opine that a rise could be in the books as Nvidia trades at record levels above $1,000.
Crypto Stocks Plunge Amid Nvidia’s Uptick
This week saw a decline in most crypto stocks as well as traditional tech stocks. Crypto stocks are companies whose values are affected by Bitcoin, altcoins, or blockchain technology. The anticipation and approval and approval of spot Ethereum ETFs by the Securities and Exchange Commission (SEC) will spark new inflows to digital assets.
This week, Ethereum surged 28% after sentiments toward a spot ETF increased above 50%.
Also Read: AI Coins Rally as Nvidia Reports $26B in Revenue, 10-1 Stock Split
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