AI cryptos are on fire!

AI cryptos are on fire!
AI cryptos are on fire!


8:01 a.m. ▪
4
min reading ▪ by
Fenelon L.

Nvidia, the graphics processor giant, announced record quarterly results and a stock split, propelling its stock to all-time highs. This news had a significant impact on artificial intelligence (AI)-related cryptos.

AI cryptos are riding the wave

Nvidia reported quarterly revenue of $26.04 billion, beating analysts’ expectations. Its net profit jumped 628% to $14.88 billion. The Santa Clara firm also forecasts revenue of $28 billion for the following quarter.

At the same time, Nvidia will split its shares 10 for 1 starting June 7. This operation aims to make the stock more accessible to small investors. Following this announcement, Nvidia shares soared 5.9% to cross the symbolic $1,000 mark.

Contrary to expectations, Nvidia’s excellent results did not immediately boost AI-related cryptos. Render (RNDR), an Ethereum token for decentralized graphics rendering, fell 12% in the hours following the release. However, history suggests a potential rebound, as in the Q4 results where RNDR jumped 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 that Nvidia’s announcement could seriously shake up the AI ​​token market in the medium term.

A strong correlation and promising prospects

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

For Zac Shander-Kelsey, CEO of Nodabank, the market has not yet fully grasped 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. Much 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 stellar results and its stock split have already impacted AI cryptos, despite a mixed initial reaction. Experts see upside potential in the medium term, driven by growing adoption of AI and growing interest from retail investors. The convergence between AI and crypto promises to be one of the major trends of the coming months.

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Fenelon L. avatarFenelon L. avatar

Fenelon L.

Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.

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