AI-related crypto tokens may have a wild ride as a result of today’s announcement from the world’s largest chipmaker, Nvidia (NVDA), which might help establish whether the artificial intelligence frenzy is genuine or just another bubble waiting to burst.
This is Nvidia’s first quarterly report after destroying Wall Street’s expectations in May and disclosing an incredibly positive prognosis for revenue related to AI. It is scheduled for release after the end of the U.S. stock market on Wednesday. AI-related cryptocurrencies rose as a result of this mindset and the growing popular adoption of AI, as evidenced by products like OpenAI’s ChatGPT. However, the majority of AI-related tokens that rose after that report swiftly gave back their gains.
Tokens like Fetch.ai (FET), The Graph (GRT), Injective (INJ), Render (RNDR), and SingularityNET (AGIX), however, are still higher year-to-date, indicating investors are still interested in the junction of cryptocurrencies and AI. After Elon Musk introduced his ChatGPT rival in July, the market saw a slight increase.
The sentiment towards AI-related crypto tokens would improve, at least temporarily, if the chipmaker can demonstrate that AI is turning into a significant moneymaker. This would benefit the tech companies who are embracing the technology in large numbers.
Today’s earnings may also demonstrate how AI may alter the corporate strategy of cryptocurrency miners. Although the hardware they utilise is optimised for processing crypto and cannot necessarily be switched over to processing AI, their knowledge and access to physical space in data centres may help them get started with AI.
Due to the prolonged bad market, mining has become less economical. As a result, miners like Applied Digital (APLD), Iris Energy (IREN), Hut 8 (HUT), and Hive (HIVE) have already begun to revitalise their data centres to accommodate AI and other computing services. Depending on how the advice from Nvidia goes, the values of these mining stocks could potentially be impacted. Investors have rewarded the shares of certain publicly traded miners for switching to AI.