The stock price of chip manufacturer Nvidia has reached an all-time high as investors anticipate an increase in AI coins.
Nvidia reached an all-time high today, whereas other assets experienced market outflows. This follows the company’s Q1 2024 earnings report, which exceeded expectations and revealed revenues of $26 billion, an 18% increase over the previous three months.
The artificial intelligence (AI) semiconductor manufacturer’s revenues increased by 262% year-over-year due to the company’s remarkable profits. The stock prices increased by 6% after the announcement before posting steady gains to new highs.
Broader US indices have remained in the red zone for the past twenty-four hours due to a decline in sentiment. Meta shares closed today at $465, a decrease of 0.43%, whereas Coinbase and MicroStrategy fell 5.46 and 6.25 per cent, respectively. Bitcoin (BTC) mining companies declined today as optimism for a fortune reversal grew.
AI Coins To Rally?
After anticipating Nvidia earnings, cryptocurrency users anticipated a rally in AI and major technology cryptocurrencies. The majority of technology equities have followed this pattern in recent months. AI currencies increased by 2% in the hours following the announcement, but the prevailing market sentiment eroded those gains.
AI coins have declined 4.3% over the past twenty-four hours while leading assets have suffered significant losses. The RNDR has decreased by 4%, whereas the GRT has reduced by 5%.
This outflow has cancelled some of the market gains attributed to AI coins. Despite a minor reversal in intraday trading, the adverse trend initiated by unfavourable macroeconomic factors maintained the status quo.
Several cryptocurrency users, however, believe that an increase is imminent, given that Nvidia is currently trading at record levels above $1,000.
Cryptocurrency Stocks Fall Amid Nvidia’s Rise
This week, the majority of crypto and traditional technology equities declined. Companies whose values are influenced by Bitcoin, cryptocurrencies, or blockchain technology are called “crypto stocks.”
New investments in digital assets will be stimulated by the Securities and Exchange Commission’s (SEC) anticipation and approval of spot Ethereum ETFs. Ethereum increased by 28% this week as sentiment toward a spot ETF surpassed 50%.