Nvidia’s Q1 Earnings Drive AI Stocks Higher While AI Cryptocurrencies Slide – Time to Buy?
Last updated: | 2 minutes reading time
Nvidia’s impressive Q1 earnings report sent AI-related stocks soaring, but contrary to crypto traders’ expectations, AI cryptocurrencies failed to follow suit.
On May 22, Nvidia released its Q1 earnings report. Revenue grew 18% quarter-over-quarter and 262% year-over-year, beating analyst estimates of $24.6 billion.
The earnings report was released after the NYSE closed on May 22. However, Nvidia’s share price rose 6.06% to $1,007 in after-hours trading, pushing its market cap above $2.5 trillion.
In anticipation of Nvidia’s earnings report, investors expected a positive result to be a catalyst for AI-related cryptocurrencies.
This led to many AI-related projects surging ahead of the report as investors rushed to capitalize on the best AI cryptocurrencies.
AI Crypto Falls Despite Nvidia Earnings
Immediately after Nvidia’s earnings report, tokens such as Fetch.ai (FET), The Graph (GRT), Injective (INJ), Render (RNDR), and SingularityNET (AGIX) jumped higher. However, many of them have since pulled back.
With Nvidia and other AI-focused companies performing well on the stock market, many investors are now wondering if AI-related crypto tokens will also benefit from the bullish sentiment surrounding AI.
Notably, on May 22, a known “whale” wallet transferred about $52.1 million worth of Render to an unknown wallet, as reported by Santiment. This could indicate that holders were anticipating a “sell the news” event.
🐳 Whale activity has been high in the #AI sector, and #Render was no exception. A known whale sent 4.89 million $RNDR (worth $52.1 million) to an unknown wallet today amid a price correction. Holders of this asset should watch for increased volatility. https://t.co/AIKq9INw1M pic.twitter.com/EG1Rd1HhcA
— Santiment (@santimentfeed) May 23, 2024
However, this initial retracement could precede a rally. Pseudonymous crypto trader D0c Crypto pointed out in an X-post that RNDR only saw a price increase 48 hours after Nvidia’s last earnings report.
🚨 $NVDA gains in 1 hour:
During Nvidia’s Q4 earnings event in February, $RNDR rose 38% in 48 hours.
If history repeats itself, that could mean $RNDR moves above $15 from current price within 48 hours!
Like this post if you believe history repeats itself! pic.twitter.com/3NoNVUiTcB
— D0c Crypto ⭕️ (@TheRealD0c) May 22, 2024
This presents a potential opportunity to enter the market and make further gains following Nvidia’s earnings report, as well as a potential buying opportunity.
While this sentiment holds some potential gains, the above AI crypto projects are limited due to their high market caps. Consequently, traders looking for faster and bigger gains would do well to investigate some of the newer low market cap AI coins currently doing the rounds.
Meet the first AI trading companion for cryptocurrencies: WienerAI
Enter WienerAI ($WAI), a new meme coin and AI companion that aims to become every crypto trader’s best friend.
The meme coin market is oversaturated with Shiba Inu coins that have little to no real use. Something that might account for the recent success of Weiner AI (WAI), which has raised over $2.7 million in pre-sales so far.
🌭🤖2 MILLION WIENER!!!!🌭🤖
🌭🤖🌭🤖🌭🤖🌭🤖🌭🤖🌭🤖🌭🤖 pic.twitter.com/gOQKIlihTq
— WienerAI (@WienerDogAI) May 17, 2024
Touted as a “revolutionary AI trading partner,” WienerAI is a digital companion that offers its owners user-friendly AI-powered trading advice, seamless swap functionality, and zero fees.
Around 20% of $WAI’s supply is dedicated to staking, and investors are currently earning a whopping 409% APY, according to the project’s official website, making WeinerAI one of the best crypto gems for passive income.
This is what it feels like to stake your $WAI.https://t.co/g0LrikQz90 pic.twitter.com/3VneRo9wTq
— WienerAI (@WienerDogAI) May 9, 2024
Stay up to date with WienerAI news on X and Telegram.
Disclaimer: Crypto is a high-risk asset class. This article is for informational purposes only and does not constitute investment advice. You could lose all your capital.
