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.
I’m not convinced that Nvidia’s success alone is responsible for the surge in AI tokens and stocks.
This article is just promoting AI-based tokens and stocks. Where is the critical analysis?