In the midst of the end-of-week euphoria in the crypto market, AI tokens are the ones that have delivered the best performance, following the release of the quarterly reports from the tech company Nvidia.
FET, TAO e RENDER are just some of the coins linked to the artificial intelligence narrative that have outperformed the Bitcoin benchmark in the short term.
Now all eyes are on Nvidia’s earnings data, which will be published on Wednesday, August 28. In the meantime, the stock has grown by 40% in the last 3 weeks.
All the details below.
Crypto market positive over the weekend: AI tokens offer the best performance
While Bitcoin closes the week with a good +9.9%, the AI tokens push on the accelerator over the weekend and achieve excellent performances, driven by the imminent quarterly reports of the American multinational Nvidia.
These types of cryptocurrencies, whose projects work in the field of machine learning and computational energy, have recorded graphical gains above average.
In particular, tokens like NEAR, FET, TAO, and RENDER are among those that have given the most excitement to their holders.
In the last 7 days, they all show double-digit percentage growth, with “Artificial Superintelligence Alliance” leading the sector with a +61.54%.
Excellent numbers also for ICP, INJ, GRT, THETA, and AKT, which in the same period see quotations on the rise.
Source: https://coinmarketcap.com/view/ai-big-data/
The majority of AI-related crypto, with the latest rise, have already recovered the ground lost during the dump of the early days of August.
Waiting for the second quarter earnings report from Nvidia to decide their direction in the market, traders are positioning themselves with bullish optimism.
In fact, according to observations by the analysis platform “Lookonchain”, the whales of coins like FET have shown unusual behavior.
It is as if they had “regretted selling” at lower prices, so much so that they repurchased at a higher price.
In the last 24 hours, the crypto has recorded a growth of over 10%, bringing its value to 1.33 dollars per unit. We remind you that the same token closed the month of March at around 3 dollars, and still reports a drawdown of 56% today.
In the financial markets, the terms “bull” and “bear” are often used to describe market trends. A “bull” market is characterized by rising prices, while a “bear” market is characterized by falling prices. Investors often try to predict whether the market will be “bull” or “bear” in order to make informed investment decisions.
Everyone is crazy about Nvidia’s quarterly earnings: record gains expected
As mentioned, the increase in prices in the AI crypto token sector is mainly driven by investor enthusiasm for Nvidia’s upcoming quarterly reports.
The tech giant from the United States will indeed publish the much-anticipated financial data for the second quarter of the year on Wednesday, August 28.
This is one of the most anticipated reports on the profits of the top listed companies of the year, with experts expecting roaring earnings.
In this regard, one of the most influential figures on Wall Street, Dan Ives of Wedbush Securities, reiterated that these are literally “the most important tech earnings of the year”.
The analysts interviewed by FactSet expect Nvidia to achieve earnings of 65 cents per share, with an increase of 141% year-over-year.
Revenues are expected to be $28.68 billion according to data from Investing.com, approximately 10% higher compared to Q1 2024. YoY the estimated revenues would instead be higher than the record percentage of 113%.
This would be the fifth quarter in a row of triple-digit growth for Nvidia, with the tech sector expected to push strongly for the rest of the year.
Contributing to the hype of the rises, there is the Federal Reserve which will very likely start cutting the interest rates on bonds in September.
We remind you that historically Invidia has been a so-called “bellweather” for the graphical trend of AI tokens, strongly influencing their trend.
During the first months of 2024, the great financial performances of the Santa Clara company that produces chip and graphic processors, have driven their price advances.
Now experts are betting on other record earnings and a continuation of the bullish trend on crypto exchanges.
Mike Smith, portfolio manager at Allspring Global Investments, speaking about Nvidia reported to Reuters the following words:
“Nvidia is the stock zeitgeist today. “You can think of their earnings four times a year as the Super Bowl.”
Analysis and price forecast for the US stock Nvidia
While AI tokens grow in the hope of positive quarterly results for Nvidia, the tech stock continues its wild bull run in the Nasdaq market.
Since the beginning of the year, its price has increased by 177%, rising from 49 dollars in January to the current 129 dollars. At the moment, its market capitalization is 3.182 billion dollars, the second highest valuation in the ranking of the best assets in the world.
Only gold and Apple boast a higher market capitalization, while Bitcoin sits in 10th place at 1.261 trillion dollars
Source: https://companiesmarketcap.com/assets-by-market-cap/
Observing the monthly chart of Nvidia, we can’t help but shout “to the moon“.
In October 2023 during the bottom of the US stock markets, the stock had fallen to $10.81, while today its price is higher by about 1,110%.
The extraordinary increase in quotations, supported by the successes that the AI sector is experiencing after the recent market launch of products like ChatGPT.
Consider that not even the collapse of the first days of August driven by the risks of recession in the USA has scared Nvidia traders.
Since August 5, the stock has recovered 40% of what was lost, bringing back the strength of the bull.
Now the most important resistances to approach are set at 135 and 140 dollars, with the break of the latter level that would decree a new price record.
Be careful, however, not to get carried away by enthusiasm in the midst of one of the most extensive and volatile charts of the last 5 years. Although the tech company is healthy and its earnings are excellent and recurring, it is not guaranteed that it will grow forever in the stock market.
Calculate the risk-reward ratio of your trades and make the necessary assumptions before buying a chart very close to its highs.
Source: https://en.cryptonomist.ch/2024/08/26/the-ai-tokens-of-the-crypto-market-lead-the-weekend-bull-awaiting-the-quarterly-reports-of-the-giant-nvidia/