AI Tokens Soar: Market Cap Doubles with Double-Digit Gains

On February 21, despite a market correction, many AI-based crypto tokens and traditional stocks experienced positive growth. AI-based crypto tokens saw double-digit gains, with some tokens surging by over 17% in the past 24 hours. The total market cap of AI-based tokens has surged by 9% to $17.8 billion since Nvidia’s quarterly earnings report. This represents a significant increase from the $7 billion market cap earlier this month. The favorable market growth of AI tokens can be attributed to Nvidia’s strong earnings report, which exceeded market expectations.

Nvidia, a chipmaker, reported a revenue of $22.1 billion in the fourth quarter, surpassing Wall Street’s estimated $20.4 billion. The company’s AI data center revenue grew fivefold compared to the previous year. Nvidia’s success can be attributed to the surge in global demand for generative AI. With a market capitalization of $1.67 trillion, Nvidia has even overtaken Tesla as the world’s most traded stock.

The positive performance of Nvidia’s AI businesses has had a ripple effect on the AI crypto market. AI-focused stocks have also reached new highs. For example, Taiwan Semiconductor Manufacturing Company (TSMC), a supplier to Nvidia, saw its stocks rise by as much as 2.05% during morning hour trade on February 21. Super Micro Computer, a supplier of server components, experienced an 11.42% increase in stocks during after-hours trading on February 20. ASML, a Dutch chip equipment manufacturer, also saw a 2.7% rise in stocks during after-hours trading.

The surge in AI-based tokens and stocks can also be attributed to other factors. OpenAI’s announcement of their text-to-video tool Sora last week contributed to the momentum of AI-related tokens. The market cap for AI tokens has been steadily increasing, reaching $17 billion this month. The AI crypto market is experiencing a period of growth, fueled by Nvidia’s strong performance and the increasing demand for AI technology.

Jacenta Sica

Jacenta Sica

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