SUPERNEWS

Crypto

AI Tokens Surge 40%, Nvidia Peaks at $922 Amid AI Boom

AI tokens surge with RNDR leading at a 40% gain, as Nvidia's stock hits a one-month high, signaling a crypto-market recovery driven by AI advancements.

By Bill Bullington

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5/7, 06:57 EDT
Bitcoin / U.S. dollar
NVIDIA Corporation
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Key Takeaway

  • AI tokens like RNDR, AGIX, TAO, and FET lead crypto recovery with up to 40% gains, outperforming Bitcoin and broader market indexes.
  • Nvidia (NVDA) shares hit a one-month high of $922 amid strong AI sector buzz and ahead of expected positive Q1 earnings report.
  • Speculation on OpenAI's new ChatGPT version fuels optimism for an "AI super cycle," influencing both the tech and crypto markets.

AI-Driven Crypto Surge

The cryptocurrency market has recently witnessed a significant recovery, led by native cryptocurrencies of blockchain projects leveraging artificial intelligence (AI). RNDR, the utility token of The Render Network, a decentralized GPU-based rendering solution, has seen an impressive surge of almost 40% to $10.432 in just seven days, marking the most substantial gain among the top 100 cryptocurrencies by market value, as reported by CoinGecko. Other AI-focused cryptocurrencies like SingularityNET's AGIX, Bittensor's TAO, and Fetch.ai's FET have also experienced notable gains ranging between 17% and 23%, outpacing the broader market's performance. In comparison, Bitcoin, the largest cryptocurrency by market value, has risen by 1.7%, while the CoinDesk 20 Index, a broader market gauge, has rallied by 0.6%.

Nvidia's AI Influence

The surge in AI-related cryptocurrencies coincides with a rally in shares of Nvidia (NVDA), a leading chipmaker and a significant player in the AI sector. Nvidia's stock has climbed to $922, reaching its highest point since April 1 and recovering more than 20% from a low of $756 on April 19, according to TradingView data. This rally is partly attributed to the anticipation of Nvidia's first-quarter earnings report, expected on May 22, with Zacks Investment Research forecasting a 403% year-on-year increase in earnings per share to $5.49. The broader crypto market has historically shown a strong positive correlation with Nvidia, especially since the company's chips were initially used in mining rigs before gaining prominence in the AI space.

AI Super Cycle and Market Sentiment

The current market dynamics suggest that we are in the midst of an AI super cycle, with significant developments expected in the coming months, including the potential launch of OpenAI's ChatGPT version 5. This anticipation has fueled positive sentiment across the technology and cryptocurrency sectors, as evidenced by the recent performance of AI-related cryptocurrencies and Nvidia's stock. Hitesh Malviya, founder of the crypto analytics platform DYOR, highlighted the cyclical runs of AI coins, correlating them with ongoing developments in AI. Furthermore, the Grayscale Bitcoin Trust (GBTC), the largest bitcoin ETF by assets, saw its first daily inflow in almost four months, indicating a turnaround in investor sentiment alongside bitcoin's rebound.

Street Views

  • Hitesh Malviya, DYOR (Bullish on AI coins and Nvidia):

    "There is a strong buzz around Nvidia's impending earnings... AI coins will keep having cyclical runs [higher] as they are directly correlated with the whole AI-side development happening around us." "OpenAI will launch a new model in the coming months, better hardware will be developed, and more funds will be injected into the space. We are in an AI super cycle right now."