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Nvidia's 210% Surge Boosts Global AI Stocks 40%-85%

Nvidia's 210% surge aligns with European semiconductor stocks and AI token rally, hinting at an anticipated AI super cycle.

By Bill Bullington

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5/8, 22:33 EDT
ASML Holding N.V. - New York Registry Shares
NVIDIA Corporation
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Key Takeaway

  • Nvidia's 210% share rise correlates with gains in European semiconductor stocks ASML, VAT Group, ASM International, and BE Semiconductor (40%-85%).
  • AI-focused cryptocurrency tokens rally alongside Nvidia, hinting at market optimism ahead of its Q1 earnings report.
  • Market anticipation of an "AI super cycle" boosts AI tokens and Nvidia shares, reflecting strong belief in AI's transformative potential.

European Stocks Align with Nvidia

In the past year, four European semiconductor companies, ASML, VAT Group, ASM International, and BE Semiconductor Industries, have shown a positive correlation with Nvidia's share price, according to CNBC Pro analysis. While Nvidia's shares soared by 210%, these European counterparts experienced more moderate gains, ranging from 40% to 85%. The correlation coefficient between these stocks and Nvidia's performance varied from 0.41 to 0.52, indicating a significant, though not perfect, alignment in their share price movements. Notably, ASML, a supplier to chip manufacturers like TSMC, and VAT Group, a maker of vacuum valves for chipmakers, alongside ASM International and BE Semiconductor Industries, are all integral to the semiconductor industry, poised to benefit from the burgeoning AI trend.

AI Tokens and Nvidia's Market Influence

The cryptocurrency market has seen a notable recovery, led by AI-focused tokens such as RNDR, AGIX, TAO, and FET, with gains outstripping the broader market and Bitcoin. This surge aligns with a rally in Nvidia's shares, which hit a one-month high of $922 ahead of its anticipated positive Q1 earnings report. Nvidia's performance is closely watched, given its pivotal role in the AI and cryptocurrency mining sectors. The company's upcoming earnings report on May 22 is expected to reflect a significant year-on-year increase in earnings per share, amidst a broader market recovery influenced by advancements in AI technology.

Anticipation of AI Super Cycle

The market's enthusiasm for AI tokens and Nvidia's stock is underpinned by speculation around the launch of OpenAI's new ChatGPT version and the onset of an "AI super cycle." This optimism is reflected in the performance of AI-related cryptocurrencies and Nvidia's share price, suggesting a strong market belief in the transformative potential of AI technology. Hitesh Malviya, founder of DYOR, emphasized the cyclical nature of AI coins' performance, correlating directly with developments in the AI sector. This sentiment is further bolstered by the recent positive earnings reports from technology giants, indicating substantial investments in AI.