Nvidia at the peak of its game: AI crypto is on fire!

Nvidia, the graphics processing giant, announced record quarterly results and a stock split, propelling its stock price to historic highs. This news had a significant impact on AI-related cryptocurrencies.

AI Cryptos Ride the Wave

Nvidia reported a quarterly revenue of $26.04 billion, exceeding analysts’ expectations. Its net profit surged by 628% to reach $14.88 billion. The Santa Clara-based company also forecasts a revenue of $28 billion for the next quarter.

Additionally, Nvidia will proceed with a 10-for-1 stock split starting June 7. This operation aims to make the stock more accessible to small investors. Following this announcement, Nvidia’s stock soared 5.9% to surpass the symbolic $1000 mark.

Contrary to expectations, Nvidia’s excellent results did not immediately boost AI-related cryptocurrencies. Render (RNDR), an Ethereum token for decentralized graphic rendering, dropped by 12% in the hours following the publication. However, history suggests a potential rebound, as during Q4 results when RNDR surged by 38% in 48 hours.

Other popular AI tokens like Fetch.ai (FET), The Graph (GRT), and SingularityNet (AGIX) also fell by 2.8% to 6%. Nevertheless, experts believe Nvidia’s announcement could seriously shake the AI token market in the medium term.

Strong Correlation and Promising Prospects

According to Marco Pagnini, a fund manager at Moonwalk Systems, the correlation between Nvidia’s stock and AI tokens has exceeded 0.75 since January. The stock split is expected to boost confidence in AI technology and attract more retail investors.

For Zac Shander-Kelsey, CEO of Nodabank, the market has yet to fully grasp the interactions between crypto and AI, but stronger correlations will emerge.

“We have seen how the traditional sector influences cryptocurrencies, and this is no different. Just like cryptocurrencies in 2017-18, the market has yet to understand how cryptocurrencies and AI interact. Once retailers understand, we will see stronger correlations.”

Nvidia’s exceptional results and stock split have already impacted AI cryptocurrencies, despite an initial mixed reaction. Experts foresee a bullish potential in the medium term, driven by a growing adoption of AI and increasing interest from retail investors. The convergence between AI and crypto is poised to be one of the major trends in the coming months.