AI Crypto Tokens Surge Amid Nvidia Earnings Anticipation

AI crypto tokens are at the forefront of market recovery on Wednesday, with many posting double-digit gains, likely driven by optimism surrounding Nvidia’s upcoming fourth-quarter (Q4) earnings.

Meanwhile, Bitcoin is struggling, trading below the psychological $90,000 level, facing potential losses amid a bearish trend.

AI Crypto Tokens Outperform Bitcoin Ahead of Nvidia Earnings

Prices of AI crypto tokens are on the rise, with tokens like Story (IP), AI Rig Complex (ARC), Livepeer (LPT), and aixbt by Virtuals (AIXBT) showing double-digit gains, as reported by CoinGecko. Other tokens such as Near Protocol (NEAR), SingularityNET (AGIX), Internet Computer (ICP), and Render (RNDR) are also experiencing growth, albeit in single digits.

AI tokens are performing notably well despite a general market slowdown. Bitcoin is trading in the $88,000 range, and the total crypto market cap has dropped nearly 3% in the last 24 hours.

Analysts attribute the positive sentiment among AI crypto coins to Nvidia’s Q4 earnings report, which is highly anticipated and set to be released today after market close. This report covers the period from November 1, 2024, to January 31, 2025, emphasizing Nvidia’s significant role in AI and GPU technology.

Is Nvidia’s earnings set to elevate AI tokens even further? asked a popular account on X.

A strong earnings report could bolster bullish sentiment for AI crypto tokens, which often mirror Nvidia’s performance as a barometer for AI sector growth. A prominent user on X suggested that good Nvidia earnings could lead to significant price increases for AI coins.

However, there are concerns that advancements in AI efficiency may lessen the demand for Nvidia’s high-end chips, potentially causing volatility in AI crypto markets.

According to Nasdaq insights, analysts anticipate Nvidia will report $38.32 billion in revenue for Q4 FY2025, marking a 73% year-over-year increase, exceeding initial guidance of $37.5 billion. Net income is also expected to rise significantly to $21.08 billion, up from $12.84 billion last year. Nvidia’s data center chips, particularly its new Blackwell platform, are critical revenue contributors amidst increasing demand for AI infrastructure.

Investor confidence in Nvidia is high, with 17 of 18 analysts categorizing the stock as a “buy” and establishing a consensus price target of $175, suggesting a 38% potential upside from the current price of $126.50.

Despite this, the stock has seen a 15% decline from its January highs due to concerns that a Chinese research lab, DeepSeek, is developing methods to train AI models with less computing power.