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AI-Focused Cryptocurrencies Rally After Nvidia’s Bullish Earnings Report
A strong quarterly sales report from Nvidia has sent shockwaves through the cryptocurrency market, with AI-focused coins surging in value over the past week. The largest AI coin by market cap, NEAR Protocol, rose 20% over the past 7 days, trading at $6.67 per coin at press time.
Market Cap Reaches All-Time High
The total AI coins market cap has reached an all-time high of $42.19 billion, driven by the gains of popular AI tokens such as Internet Computer, Bittensor, FET, and SingularityNET. Other AI tokens, including Qubic, Virtuals Protocol, Grass, and Livepeer, recorded significantly higher gains, with some reaching 79.5%, 61%, 58%, and 41.9% respectively.
Contributing Factors
The rally is attributed to several factors, including Nvidia’s better-than-expected third-quarter earnings report, which revealed record quarterly sales of $35.1 billion. The company’s CEO, Jensen Huang, highlighted a significant uptick in demand for the latest Blackwell chip, which has raised expectations of surpassing the earlier estimate of $7 billion in revenue for Q4 2025.
Nvidia’s Strong Sales Growth
Nvidia’s stock has climbed over 180% this year, nearly tripling on the back of strong sales growth and its commitment to generative AI and accelerated computing technologies. Analysts at Citi have placed Nvidia on a “positive catalyst watch,” forecasting that its shares could climb by up to 27% to a $175 price target within the next 90 days, driven by rising sales of Blackwell chips as 2025 approaches.
Policy Shifts and AI-Related Coins
AI-related cryptocurrencies often rally on bullish news about Nvidia, as previously reported by Crypto.news, when several of these tokens posted gains in November after Nvidia briefly surpassed Apple as the world’s most valuable company. This time, AI-related coins have also benefited from policy shifts under the U.S. administration, which plans to appoint an “AI czar” to centralize artificial intelligence policy and strengthen the nation’s leadership in transformative technology.
What’s Next for AI Coins?
As the AI sector continues to rally, investors and traders should remain cautious and keep a close eye on market developments. With the total AI coins market cap at an all-time high, it’s essential to diversify portfolios and consider long-term strategies to navigate the ever-changing cryptocurrency landscape.
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