Despite Nvidia’s strong first-quarter earnings report, the prices of AI-related cryptocurrency tokens experienced a brief downturn, defying expectations of crypto traders.
Nvidia, renowned for producing chips used in training and deploying AI models, reported a remarkable 18% increase in Q1 revenue from Q4 2023 and a staggering 262% surge from the previous year, surpassing analyst estimates of $24.6 billion.
After the earnings report was released after the New York Stock Exchange (NYSE) market closed on May 22, Nvidia’s stock spiked by 6.06% in after-hours trading, reaching $1,007.
However, some AI token traders were disappointed that the positive results did not lead to a similar increase in AI token prices. Within five hours of the earnings report’s release, Render, an Ethereum-based platform facilitating decentralized graphics processing unit rendering, experienced a 12% decline, with its price dropping to $10.38.
Interestingly, a significant “whale” wallet transferred approximately $52.1 million to an unknown wallet on May 22, indicating that large holders may have anticipated a “sell the news” scenario, according to data from crypto research firm Santiment.
While some traders pointed out that RNDR did not experience a price spike until two days after Nvidia’s previous earnings report, others remained confident that Nvidia’s results would eventually benefit the wider crypto market positively.
Despite the initial dip, traders believe that Nvidia’s success will eventually have a positive impact on the AI-related cryptocurrency market.
May 2024, Cryptoniteuae
