Nvidia’s Q1 Earnings Boost Stock by 6%, Yet AI Tokens See Minimal Change

Traders were surprised when the prices of AI-related cryptocurrency tokens quickly dropped, even though Nvidia had a great first-quarter earnings report. 

Cointelegraph reported on May 23 that Nvidia, which makes chips that power AI models, reported an 18% rise in income from Q4 2023 and a staggering 262% year-over-year rise, which was much higher than the $24.6 billion that analysts had predicted. 

According to Yahoo Finance, Nvidia’s stock price increased by 6.06% after hours of trading on May 22 after the NYSE market ended. It reached $1,007, which is a record high. 

Some people who trade in AI tokens were upset that Nvidia’s good performance did not cause AI token prices to rise at the same rate.

Five hours after the profit report came out, the price of Render, an Ethereum-based platform for decentralized GPU rendering, dropped 12%, to $10.38, according to data from CoinMarketCap.

However, crypto research company Santiment says that on May 22, a well-known “whale” wallet sent around $52.1 million to an unknown wallet. Based on this action, it looks like big holders may have been ready for a “sell the news” situation.

A crypto trader who goes by the name D0C Crypto said that RNDR’s price increase happened two days after Nvidia’s last earnings report. 

“RNDR went up 38% in just 48 hours during Nvidia’s Q4 earnings event in February.” 

If the past is any indication, the price of RNDR could go above $15 in the next 48 hours,” they wrote in a May 22 X post. 

Other AI-related tokens also faced declines, with The Graph (GRT), an indexing protocol for optimizing blockchain data queries, dropping approximately 4.77%. 

Similarly, Fetch.ai (FET) fell by 6.42%, and SingularityNet (AGIX) saw a 6.25% decrease.

Despite these drops, traders remain optimistic that Nvidia’s strong performance will eventually benefit the broader crypto market. 

Pseudonymous crypto trader Bishara highlighted this confidence to their 18,000 X followers on May 22, saying, “Nvidia just hit a 2.5 trillion USD market cap, bigger than the entire crypto space, and you’re not bullish on AI this cycle?”

Echoing this sentiment, pseudonymous crypto trader Plazma added, “Nvidia did well = stocks will do well = crypto will do well.”