Nvidia’s Record Quarterly Results and Stock Split Impact on AI Cryptos

Nvidia’s Record Quarterly Results and Stock Split Boost AI Cryptocurrencies

Nvidia, the renowned graphics processing giant, recently announced record-breaking quarterly results along with a stock split, leading to a surge in its stock price to unprecedented levels. This development had a notable impact on AI-related cryptocurrencies.

The company reported a staggering quarterly revenue of $26.04 billion, surpassing analysts’ expectations. Its net profit also saw a remarkable increase of 628%, reaching $14.88 billion. Furthermore, Nvidia foresees a revenue of $28 billion for the upcoming quarter.

In addition to its exceptional financial performance, Nvidia is set to implement a 10-for-1 stock split commencing on June 7. This move is aimed at making the stock more accessible to small investors. Following the announcement, Nvidia’s stock price soared by 5.9%, surpassing the symbolic $1000 mark.

Despite the impressive results from Nvidia, AI-related cryptocurrencies did not experience an immediate surge. For instance, Render (RNDR), an Ethereum token for decentralized graphic rendering, witnessed a 12% drop in the hours following the news. However, historical data indicates a potential rebound, as seen during the Q4 results when RNDR surged by 38% within 48 hours.

Similarly, other popular AI tokens like Fetch.ai (FET), The Graph (GRT), and SingularityNet (AGIX) also experienced declines ranging from 2.8% to 6%. Nonetheless, experts anticipate that Nvidia’s announcement could significantly impact the AI token market in the medium term.

According to Marco Pagnini, a fund manager at Moonwalk Systems, the correlation between Nvidia’s stock and AI tokens has been above 0.75 since January. The stock split is expected to enhance confidence in AI technology and attract more retail investors.

Zac Shander-Kelsey, CEO of Nodabank, believes that the market has yet to fully comprehend the interactions between crypto and AI, but stronger correlations are likely to emerge.

In conclusion, Nvidia’s outstanding financial results and stock split have already influenced AI cryptocurrencies, despite an initial mixed reaction. Experts foresee a bullish outlook in the medium term, driven by the increasing adoption of AI and rising interest from retail investors. The convergence of AI and crypto is poised to be a significant trend in the coming months.