Nvidia Outperforms Russell 2000 Stocks, AI Crypto Coins React Positively

Nvidia Corp traded $10 billion higher than all the stocks in the Russell 2000 on Tuesday, accounting for nearly 43% of the S&P 500 market cap gain year-to-date.

Nvidia Corp outperformed the Russell 2000 Index by a massive $10 billion on Tuesday, driving the S&P 500 to a 0.2% gain. Meanwhile, AI crypto coins reacted positively to the news.

Nvidia Outperformsчень торгов. На фоне спроса на акции Nvidia росли на 0.5%, в то время как акции Tesla Inc (NASDAQ:TSLA) снижались на 0.6%.

The demand for Nvidia stock was evident, as it recorded the highest volume of trades among the top 5 most-traded stocks in the market. Nvidia’s stock closed at $45.94 billion in volume on Monday. This outperformed the combined volumes of Tesla, Apple Inc (NASDAQ:AAPL), Advanced Micro Devices, Microsoft Corp (NASDAQ:MSFT), and Berkshire Hathaway.

Together, these 5 stocks accounted for nearly 70% of the total volume in the S&P 500. Notably, Nvidia stock outperformed the combined volumes of the other 4 stocks.

The outperformance by Nvidia stock comes as the AI chipmaker continues to post strong performances. In May, Nvidia reported first-quarter earnings per share of $6.12, which beat expectations of $5.65. The company also posted revenues of $26.04 billion in its Q1 2024 earnings, beating analyst predictions of $24.69 billion by 5.4%.

With this, the firm’s year-on-year earnings grew to about 262%. The strong demand for AI chips at the start of 2024 drove Nvidia stock to new all-time highs.

AI Tokens Rise as Nvidia Outperforms

While AI crypto coins cannot directly benefit from the earnings of Nvidia, the performance of the chip giant does impact the market sentiment towards AI.

As Nvidia outperformed the Russell 2000 and anticipates a 10-to-1 stock split, AI tokens demonstrate notable strength. This market sector often benefits from positive news about the chip giant.

With Nvidia stock outperforming and driving the S&P 500 to a fresh all-time high, investors are showing optimism towards growth stocks. In turn, this bodes well for AI crypto coins, which have shown a strong correlation with the performance of growth stocks in 2024.

As reported by BeInCrypto, AI crypto coins have outperformed the broader crypto market in 2024, with the market capitalization of AI coins surging by over 300% since the start of the year.

This outperformance is largely attributed to the increasing global demand for AI technologies, which is boosting sales of Nvidia’s chips by wide margins.