Nvidia's Record Results and Stock Split Send Ripples Through the AI Crypto Market

Nvidia reported a quarterly revenue of $26.04 billion, exceeding analysts’ expectations. Its net profit surged by 628% to reach $14.88 billion

Graphics processing giant Nvidia (NASDAQ:NVDA) announced record quarterly results and a stock split, sending its stock price to historic highs. This news had a mixed impact on AI-related cryptocurrencies.

AI Cryptos

Nvidia reported quarterly revenue of $26.04 billion, beating 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.

Moreover, Nvidia will carry out 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 rose 5.9% to cross the symbolic $1000 mark.

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

Other popular AI tokens, such as Fetch.ai (FET), The Graph (GRT), and SingularityNet (AGIX), also fell by 2.8% to 6%.

Despite this, experts believe Nvidia’s announcement could have a significant medium-term impact on the AI token market.

Strong Correlation, Promising Prospects

According to Marco Pagnini, a fund manager at Moonwalk Systems, the correlation between Nvidia’s stock and AI tokens has been very high since January, exceeding 0.75.

The stock split is expected to boost confidence in AI technology and attract more retail investors, which could lead to a positive impact on AI crypto prices.

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 begun to influence AI cryptocurrencies, albeit with an initial mixed reaction. But experts foresee a bullish potential in the medium term, fueled by a growing adoption of AI and increasing interest from retail investors. The convergence between AI and crypto is set to be one of the major trends in the coming months.

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Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermely que Bitcoin est l'outil qui peut rendre cela possible.