AI Tokens Rise after Nvidia Posts Impressive Q2 2024 Earnings Report Showing Increased Revenue and Net Income
Tokens related to AI all rose after Nvidia’s report, and are likely to continue reaping from institutional interest in artificial intelligence.
Cryptocurrencies related to artificial intelligence (AI) have advanced quite well following chipmaker Nvidia Corp’s (NASDAQ: NVDA) impressive fiscal 2024 Q2 earnings report. Several AI tokens climbed in response, adding to the general enthusiasm in the general AI industry that has been booming since last year.
Over the past 24 hours, AGIX, GRT, RNDR, and INJ all rose. FET also climbed on Nvidia’s news shortly after the announcement. Each of these tokens jumped at least 4% over the period.
NVDA closed trading on Wednesday at $471.16, a 3.17% climb on the day. As of writing time, NVDA has climbed a further 6.58% in after-hours trading, to $502.15. Over the past 5 days, Nvidia shares have risen nearly 9%, and over 24% in the last 3 months. The chipmaker has had better results over the last 12 months at 163%, and more than 222% year to date (YTD).
Nvidia announced revenue of $13.51 billion, a nearly 88% increase from Q1 and more than 100% from the same period the previous year. Analysts polled by Refinitiv had expected revenue at $11.22 billion and adjusted earnings per share (EPS) of $2.09. Nvidia beat both expectations, reporting adjusted EPS at $2.70. According to CEO and founder Jensen Huang, company growth came from increased demand for several products and partnerships.
Nvidia Boom May Boost AI Tokens Further
AI tokens are likely to continuously benefit from the ongoing boom in the artificial intelligence sector as demand increases and projections remain robust. Back in May, Nvidia’s market cap hit $1 trillion, joining the likes of Alphabet, Microsoft, and Amazon. At the time, Nvidia said its guidance for sales was $11 billion, much higher than the $7.15 billion analysts estimated. According to CEO Huang, computers and servers are evolving, and the way they are now being built puts Nvidia in the best spot for an advantage. In a recent report, Huang said:
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
Nvidia’s Q2 report also included other interesting figures that point to a boom for AI and related tokens. For instance, the company’s Data Center revenue was $10.32 billion, increasing 141% from last quarter and 171% from the same period the previous year. Also, Nvidia returned 7.5 million shares, worth $3.38 billion, to shareholders.
Nvidia’s net income was $6.7 billion, up 148% from Q1’s $2.7 billion, and 422% from Q2 of last year. Following these impressive figures, Nvidia also posted a bullish outlook for fiscal Q3 of 2024. According to the company, revenue is expected at $16 billion, plus or minus 2%. Nvidia also expects GAAP and non-GAAP operating expenses at about $2.95 billion and $2 billion, respectively.
AI tokens should see a continuous boost as the industry expands and use cases increase. However, there is a general regulatory concern for the future of these tokens as governments continuously try to regulate the artificial intelligence industry.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
