AI tokens post huge weekly gains in anticipation of Nvidia's Q2 earnings
fxstreet.com 27 August 2024 04:18, UTC - Several AI tokens lead the crypto market with heavy gains following a 60% rise in FET.
- Nvidia’s earnings are considered an indicator of the global health of the Artificial Intelligence sector.
- Analysts expect a Q2 revenue of $28.7 billion and earnings per share of $0.65.
Several AI tokens, including FET, RENDER and NEAR Protocol (NEAR), have posted huge gains as the market anticipates Nvidia’s (NVDA) Q2 earnings on August 28.
These AI tokens have potential for further rise if Nvidia posts positive earnings
Artificial intelligence (AI) tokens were among the largest gainers in the crypto market in the past week following anticipation of Nvidia’s Q2 earnings on Wednesday.
In the 7-day time frame, Artificial Superintelligence Alliance (FET) leads the sector with gains of over 61%. RENDER is just a little behind, posting an increase of 36%.
NEAR Protocol (NEAR), Internet Computer (ICP), Bittensor (TAO), The Graph (GRT) and Akash Network (AKT) also saw notable gains, rising 21%, 14%, 19%, 14% and 26%, respectively.
Top AI tokens
While most of these tokens currently trade in the red, their outlook could change in the coming days if Nvidia’s Q2 earnings come out positive. However, they could flip bearish if the Q2 earnings underperform expectations, as short-term holders may decide to book profits. Historically, AI tokens have often rallied whenever NVDA posted significant gains or provided positive updates.
Following the company’s rise to trillion-dollar status since AI went mainstream, many investors see its financial performance as an indicator of the global AI industry’s health, including crypto AI tokens. Market analysts predict that Nvidia will report Q2 revenue of approximately $28.7 billion — a year-on-year (YoY) increase of 112% — and adjusted earnings per share (EPS) of about $0.65 — reflecting a 139% YoY growth.
If the earnings come as or higher than expected and history repeats, investors can expect a rally in AI tokens after the Q2 report on Wednesday.
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