Nvidia’s Q1 results sent its stock soaring 6%, but AI tokens barely moved
|The price of artificial intelligence (AI)-related cryptocurrency tokens briefly tumbled despite Nvidia’s impressive first-quarter earnings report, contrary to crypto traders’ expectations.
Nvidia — which produces chips companies use to train and deploy AI models — saw Q1 revenue jump 18% from Q4 2023 and surge 262% from a year ago, beating analyst estimates of $24.6 billion, Cointelegraph reported on May 23.
The earnings report was released after the New York Stock Exchange (NYSE) market closed on May 22. Nvidia spiked 6.06% in after-hours trading, reaching $1,007 at the time of writing, according to data from Yahoo Finance.
Some AI token traders appeared disappointed the positive results didn’t lead to a similar bump in AI token prices.
Within just five hours of the earnings report’s release, Render — an Ethereum-powered platform enabling decentralized graphics processing unit rendering — saw a 12% decline, with its price plummeting to $10.38, according to CoinMarketCap data.
However, a known “whale” wallet sent around $52.1 million to an unknown wallet on May 22, which could suggest large holders were expecting a “sell the news” event, according to data from crypto research firm Santiment.
Render (RNDR) is currently trading at $10.52, down 5.51% over the past 24 hours. Source: CoinMarketCap
Meanwhile, pseudonymous crypto trader D0C Crypto pointed out that RNDR didn’t experience a price spike until two days after Nvidia’s last earnings report.
“During the Nvidia Q4 earnings event in February RNDR rose 38% in 48 hours. If history repeats itself, it could mean that RNDR pumps above $15 from the current price within 48 hours!” they declared in a May 22 X post.
Other AI-related tokens, such as The Graph (GRT $0.34) — an indexing protocol optimizing blockchain data queries — dipped by approximately 4.77%. Similarly, Fetch.ai (FET) declined by 6.42%, while SingularityNet (AGIX) recorded a 6.25% dip.
However, traders remain confident that Nvidia’s results will eventually flow into the wider crypto market and have a positive impact.
“Nvidia just hit 2.5 trillion USD market cap, bigger than the whole crypto space, and you’re not bullish on AI this cycle?” pseudonymous crypto trader Bishara asked their 18,000 X followers on May 22.
“Nvidia did well = stocks will do well = crypto will do well,” added pseudonymous crypto trader Plazma.
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