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AI-Linked Crypto Tokens Surge After Nvidia Sees 'Tipping Point'

AI tokens outperform the CoinDesk 20 index, as crypto traders bet on solid Nvidia earnings and outlook.

By Aoyon Ashraf, Sam Reynolds|Edited by Nick Baker

Updated Mar 8, 2024, 9:56 p.m. Published Feb 21, 2024, 9:37 p.m.

Giant chipmaker Nvidia (NVDA) beat its already lofty fourth-quarter earnings expectations, boosting the broader equity markets and artificial intelligence (AI) - related tokens.

Nvidia said on Wednesday that its fourth-quarter earnings per share were $5.16, beating the average analyst estimate of $4.59 per share, according to FactSet data. The chipmaker also posted revenue of $22.1 billion, which came in higher than Wall Street's expectation of $20.4 billion.

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AI Tokens surged after Nvidia's earnings. SingularityNet AGIX$0.31624 was up over 20%, while FetchAI's FET$0.71123 is up over 10%, and Render's RNDR$4.53 is up 8%. The overall marketcap of AI tokens has surpassed $16.5 billion, according to CoinGecko data.

In comparison, the CoinDesk 20 (CD20), a benchmark for the biggest and the most liquid cryptocurrencies, is down 2.7%.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA.

Nvidia also forecast first-quarter revenue of $24 billion, beating analysts' estimate of $22.2 billion.

The beat comes as shares of the maker of chips that have fueled the artificial intelligence (AI) revolution surged more than 200% over the last year, taking the market cap of the company to nearly $1.7 trillion at one point, topping the value of tech giants Amazon and Google. The rally has been so hot that Goldman Sachs even called it "the most important stock on planet earth."

The shares of the chipmaker rose more than 7% in post-market trading on Wednesday, while S&P 500 futures gained 0.5% and bitcoin BTC$94,669.04 was down 1.2%.

UPDATE (Feb. 21, 23:40 UTC): Updates headline and story to reflect a surge in AI-linked token prices.

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Aoyon Ashraf

Aoyon Ashraf is CoinDesk's managing editor for Breaking News. He spent almost a decade at Bloomberg covering equities, commodities and tech. Prior to that, he spent several years on the sellside, financing small-cap companies. Aoyon graduated from University of Toronto with a degree in mining engineering. He holds ETH and BTC, as well as ALGO, ADA, SOL, OP and some other altcoins which are below CoinDesk's disclosure threshold of $1,000.

Sam Reynolds

Sam Reynolds is a senior reporter based in Asia. Sam was part of the CoinDesk team that won the 2023 Gerald Loeb award in the breaking news category for coverage of FTX's collapse. Prior to CoinDesk, he was a reporter with Blockworks and a semiconductor analyst with IDC.