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Nvidia Earnings Report Poised to Skyrocket AI Crypto Tokens – Here’s What You Need to Know
As Nvidia prepares to release its highly anticipated earnings report this week, both traditional financial (TradFi) and cryptocurrency markets are bracing for the impact. The chip giant’s performance is expected to have far-reaching implications, especially for AI tokens in the crypto space. Here’s what you need to know about Nvidia’s earnings and their potential ripple effects on the market.
Nvidia Earnings: What to Expect
Nvidia (NVDA), a leading AI chip maker, is expected to announce earnings on Wednesday. Investors around the world eagerly await this report, anticipating another quarter of robust earnings and revenue growth fueled by growing demand for AI.
With a market cap of over $2.38 trillion, Nvidia’s share price has soared to $953, marking a 200% increase over the past year and nearly 100% year-to-date.
Analysts predict Nvidia’s sales could have increased nearly fourfold in the April 2024 quarter, reaching $24.6 billion, with earnings potentially quintupling to $5.60 per share. The company’s guidance estimates sales between $23.5 billion and $24.5 billion. This impressive growth is a testament to the scaling power of Nvidia’s AI chips, with shares closing at a record $953.86 on Tuesday.
However, Bloomberg consensus data suggests that Nvidia’s previous quarter earnings probably increased by more than 400%, with revenue increasing by 242%. For the second quarter, analysts predict revenue growth of approximately 100% and profit expansion of more than 120%.
Impact on the crypto market
Nvidia’s earnings report is expected to significantly influence the cryptocurrency market, particularly AI tokens. AI tokens are digital assets that support AI-based projects, applications, and services, such as AI decentralized markets, AI-powered trading algorithms, and AI-driven decentralized autonomous organizations.
Top AI tokens like Near Protocol (NEAR) Render (RNDR), Graph (GRT) and Injective (INJ) are expected to see a price increase in response to Nvidia’s strong performance. These tokens are not only used for transactions within AI platforms but also grant governance rights to their holders.
As Nvidia’s positive earnings outlook boosts confidence, AI tokens have already entered the green trading zone, indicating growing investor interest and optimism.