Nvidia Reports $26 Billion in Q1 Revenue, AI Crypto Tokens Show Correlation Gains

Chip technology giant Nvidia announced its first-quarter earnings, showing record quarterly revenue of $26 billion, up 5.5% of market expectations. The company also confirmed that a ten-to-one forward stock split will be implemented by June 7, 2024. As of this writing, Nvidia shares ($NVDA) are up 2.6% after the market close.

On the cryptocurrency side, AI-related tokens have seen significant growth despite poor performance in the broader digital asset market, with the exception of Ethereum’s recent gains.

The surge in AI token prices came as investors prepared for chipmaking giant Nvidia’s (NVDA) quarterly earnings report. Nvidia’s report is widely seen as the grand finale to a surprisingly strong earnings season for big tech companies.

Looking ahead, Nvidia expects revenue of $28.0 billion in the second quarter of fiscal 2025, plus or minus 2%. The company also announced a 150% increase in its quarterly cash dividend.

According to CoinGecko data, several large-cap AI tokens have seen significant gains over the past 24 hours. Fetch.ai’s FET, Render’s RNDR, Bittensor’s TAO and SingularityNET’s AGIX rose 4% to 5%.

Meanwhile, the AIOZ Network (AIOZ) token rose 7% after the announcement that Nvidia had listed the project on its Accelerated Applications Catalog, which allows users to search for tools and services built on Nvidia platforms.

The merger of Fetch.AI, SingularityNET and Ocean Protocol has also been approved by their communities, combining $FET, $AGIX and $OCEAN into $ASI with a projected total value of $7.5 billion.

The native token of Near Protocol (NEAR), a Layer 1 (L1) network that gained attention when its co-founder spoke at an Nvidia conference earlier this year, also saw a 2% gain. NEAR was the best-performing asset, down 0.6% with moderate declines in both Bitcoin (BTC) and Ethereum (ETH).

The overall market decline follows a breakneck rally triggered by positive regulatory changes in the U.S. and a decline in bond yields as inflation declines. Still, AI-focused tokens managed to buck the trend and post gains.

Nvidia’s earnings report is expected to confirm enthusiasm around artificial intelligence and potentially provide a glimpse into the future for the stock. The company’s shares have surged more than 200% over the past 12 months, adding approximately $1.5 trillion in market value. With a market capitalization of $2.3 trillion, Nvidia’s share in the S&P 500 index increased from 2.2% to over 5% last year.

Other tech giants such as Microsoft, Alphabet, Amazon and Apple have already reported strong profits, showing that demand for AI services is helping to drive revenue growth. These results helped push the S&P 500 to an all-time high.

Investors have come to expect Nvidia to generate eye-popping profits, and in recent quarters the company has exceeded earnings and sales estimates by at least 15%. However, there are some concerns about the launch of a new chip called Blackwell later this year, which could prompt customers to slow down purchases of its predecessor until the new one is available.

Despite these concerns, the performance of AI-focused tokens is a testament to the growing interest in the AI ​​sector and its potential impact on the future of technology and finance.