Markets
Largest AI tokens by market cap in red after Nvidia’s Q1 earnings report
Nvidia’s revenue in the first quarter of 2024 beat analyst estimates, while the price of the biggest artificial intelligence tokens fell.
Nvidia has a market cap of $2.3 trillion, rivaling the entire crypto ecosystem which has a total market cap of $2.7 trillion.
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Posted May 22, 2024 at 7:27 PM EST.
After Nvidia reported its first-quarter results on Wednesday, which beat financial analysts’ estimates, the largest artificial intelligence cryptocurrencies by market capitalization initially fell, suggesting traders locked in their gains.
According to CoinGecko data, the top five AI tokens by market capitalization – FET, ICP, RNDR, GRT and TAO, which had made gains before the earnings report – each fell immediately after Nvidia’s announcement, With RNDR, the native token of peer-to-peer GPU marketplace Render, taking the stock as the biggest laggard, fell 4.7% in the hour following the announcement.
Four of these tokens are still trading below their price at the time of Nvidia’s announcement posted on Yahoo Finance at 4:20 p.m. EST. FET was trading around $2.65 at the time of the announcement and has since fallen 4% to $2.54. ICP, RNDR and GRT are just a little below their price at the time of announcement.
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Nvidia’s quarterly revenue increased 18% from last quarter to $26 billion in the first quarter of 2024. Nvidia’s first quarter report also announced a ten-for-one forward split of common stock issued by NVIDIA, with the aim of making “share ownership more accessible to employees and investors”. “, according to announcement.
According to ReutersNvidia’s first-quarter revenue of $26 billion beat analysts’ estimates of $24.65 billion.
The price action of major AI tokens might surprise some traders, as positive news about Nvidia in the past has coincided with the price increase of AI tokens. For example, at Nvidia’s GTC 2024 in March, a developer conference on artificial intelligence, AI tokens flewaccording to blockchain detective Lookonchain.
While major AI tokens were in the red after earnings, BTC and ETH remained stable, according to CoinGecko. NVDA slipped 0.46% on the day to a closing price of $949.50, but rose about 6% to $1,009 during extended trading hours Wednesday, according to data from Yahoo finance.
Nvidia is a company headquartered in Santa Clara, California, focused on engineering chips, systems, and software for artificial intelligence factories. The AI-focused company has a market cap of $2.3 trillion, rivaling the entire crypto ecosystem which has a total market cap of $2.7 trillion.