The share price of Nvidia (NVDA), one of the biggest producers of graphics processing units (GPUs), has recovered by 15% this week, leading analysts to speculate whether “bottomed out” artificial intelligence (AI) crypto tokens will follow suit.
“This is absolutely insane,” trading resource The Kobeissi Letter declared in an April 27 post on X, while pointing out the major climb seen in Nvidia’s market cap within the past trading week:
“The stock has jumped from a low of $756 to $880+, adding ~$320 BILLION in market cap,” it added.
Source: The Kobeissi Letter
Even though AI crypto tokens have faced price drops across the board, analysts are hopeful that Nvidia’s strong performance will have a positive effect, as they claim was the case in the previous market cycle.
Pseudonymous crypto trader Crypto Stream explained in an April 26 post on X that his “base assumption” for investing in AI tokens revolves around the performance of Nvidia. Its anticipated Q1 2024 earnings report will be released publicly on May 22.
“Many TradFi investors are probably waiting for this data before making their next move. Don’t forget they felt a lot of FOMO when NVIDIA pumped non-stop,” they explained.
Meanwhile, Pseudonymous crypto trader CryptoGodJohn told their 668,100 X followers on April 27 that it “should be an exciting few weeks leading into the Nvidia earnings.”
“A lot of AI coins looking bottomed out here,” CryptoGodJohn further added.
Render (RNDR) is down 6.89% over the past 24-hours, while Fetch.AI (FET) dipped 6.12% and SingularityNET (AGIX) has declined 5.47% over the same time period, as per CoinMarketCap data.
Related: AI takes center stage as Microsoft and Google earnings signal booming market
NVDA saw a recovery of 15% since the end of trading on April 19, when the stock closed at $762. By the end of the trading week on April 26, the share price had reached $877.
Within the past 24 hours alone, NVDA rose 6.18%, according to Google Finance data.
Source: Google Finance
AI crypto tokens experienced price jumps after Nvidia’s strong performance was released in its Q4 2023 earnings report in February.
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