Later today, chipmaker Nvidia (NVDA) will be a big part of figuring out whether the excitement about artificial intelligence is real or just another speculative bubble about to burst. This could also have a big effect on how volatile cryptocurrency tokens related to AI are.
Nvidia is scheduled to release its next quarterly report on Wednesday, following the closure of the U.S. stock market. This is their first report since their amazing performance in May, when they beat Wall Street’s expectations and showed an AI-related revenue forecast that was very optimistic. This good feeling, along with the growing use of AI in mainstream apps like OpenAI’s ChatGPT, had a ripple effect on AI-related crypto tokens, which caused their prices to go up.
But it’s important to remember that most AI-related tokens quickly lost the value gains they had made after Nvidia’s previous report.
But so far this year, tokens like Fetch.ai (FET), The Graph (GRT), Injective (INJ), Render (RNDR), and SingularityNET (AGIX) are still going up.This demonstrates that investors remain interested in the synergy between cryptocurrency and artificial intelligence. In July, the market went up a little bit after Elon Musk told ChatGPT about his competitor.
If the chipmaker can show that artificial intelligence is becoming a big source of profit, this would not only help technology companies that use AI a lot, but it would also make people feel better about cryptocurrency tokens related to AI, at least in the short term.
Today’s earnings reports might offer insights into how artificial intelligence could impact the strategic direction of cryptocurrency miners. Even though their equipment is tailored for cryptocurrency mining and might not readily adapt for AI processing, their expertise and the vacant space within data centers could initiate their entry into the domain of artificial intelligence.
Companies like Applied Digital (APLD), Iris Energy (IREN), Hut 8 (HUT), and Hive (HIVE) have already initiated the transformation of their data centers to accommodate AI and other computational services. This transition comes as cryptocurrency mining has become less lucrative due to the extended bear market. Investors have praised certain publicly traded mining companies for their shift towards AI ventures, and the guidance offered by Nvidia’s earnings report could impact the stock prices of these mining firms.
