AI crypto tokens tumble despite Nvidia shares gaining ahead of earnings

Market Updates • August 28, 2024, 6:30AM EDT
Published 1 minute earlier on
The Block

Quick Take

  • AI-related crypto tokens are down ahead of Nvidia’s earnings call today, which is expected after markets close in New York on Wednesday.
  • Nvidia’s second-quarter results today will give Wall Street insight into the artificial intelligence sector’s performance.
The prices of major artificial intelligence-related cryptocurrencies have fallen in the past 24 hours, with the recently combined Artificial Superintelligence Alliance token leading the downturn. The price correction comes despite Nvidia stock gaining in pre-market trading ahead of the firm's highly anticipated earnings report — due later today.
 
The leading tokens in the AI cryptocurrency space, including Near Protocol with a market cap of $5.5 billion, Internet Computer at $3.8 billion, the Artificial Superintelligence Alliance at $3.4 billion and Bittensor at $2.8 billion, have all declined over the past day by 8%, 5%, 9% and 8%, respectively, according to The Block's Prices Page.
 
According to CoinGecko data, the AI token market cap stands at $23.9 billion, which is a decrease of over 6% in the past 24 hours. The downturn is reflected in the broader cryptocurrency sector, with today's global crypto market cap standing at $2.17 trillion — a 6.8% decrease in the same period.

Anticipation builds ahead of Nvidia earnings report

The decline in AI-related crypto tokens comes despite Nvidia gaining in pre-market trading, with the Nasdaq-listed stock price now up 0.52% at $128.97.

All eyes are on the upcoming Nvidia earnings call, which is expected to come after the close of markets in New York on Wednesday. Big tech companies like Nvidia have become increasingly influential, and with a market capitalization of around $3.2 trillion, a move in its share price affects the broader market. Nvidia stock has increased by 159% since the beginning of the year and is up approximately 3000% since 2019.

"A strong earnings report from Nvidia could drive markets to new highs, while any sign of weakness might trigger a notable pullback, making Nvidia's performance a potential market mover this week," FXTM Senior Market Analyst Lukman Otunuga told The Block. He added that significant challenges are on the horizon for the AI firm, including potential delays in its Blackwell chip, rising competition from AMD and Intel, and potential U.S. restrictions that could impact demand in China.


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© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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