AI tokens surge in wake of Nvidia earnings report

The hype around Nvidia and rising demand for AI chips spurred a rally in crypto tokens tied to artificial intelligence.

According to CoinMarketCap, at the time of writing SingularityNET (AGIX) was up 19%, to $0.29. Cortex (CTXC) rose 6% to $0.17, and Measurable Data Token (MDT) gained 6.5%, reaching $0.04.

All of the listed assets have market capitalizations below $40 million.

Fetch.ai (FET), with a market cap of $195 million, rose almost 5% and at one point reached $0.24. The price has since retraced to $0.23.

The rest of the crypto market, including Bitcoin and Ethereum, did not show notable movement.

The tokens above belong to respective AI blockchain projects. For instance, Fetch.ai is building the infrastructure for “smart, autonomous services” across supply chains, finance, travel, and more.

Cortex aims to be “the first decentralized world computer capable of running AI and decentralized applications.”

What impact did Nvidia have?

On May 24 Nvidia published its report for the first quarter of fiscal 2024. The company’s revenues beat analysts’ expectations, sending the chipmaker’s shares up nearly 25%.

In a single day, Nvidia’s market capitalization rose by $185 billion, bringing it close to the “club of trillionaires”.

During the earnings call, CEO Jensen Huang emphasised the importance of AI for business growth. The majority of revenue came from the data-centre products division, whose main customers are cloud providers and AI algorithm developers.

Optimistic forecasts for the current quarter likely fuelled a hype around AI, including among blockchain projects.

Recall, in January prices of AI-related tokens surged amid the popularity of ChatGPT.

In February, announcements of chatbots by Google and Microsoft sparked a similar effect.