Nvidia Earnings on the Horizon: Can the Crypto "Super Bowl" Generate Another Surge?

Nvidia Earnings on the Horizon: Can the Crypto "Super Bowl" Generate Another Surge?Nvidia's highly anticipated earnings report is scheduled to be released after the US market closes on Wednesday, and is considered by many industry insiders to be the most significant tech stock earnings release in years. It's been dubbed the "Super Bowl" of the earnings season and is seen as a bellwether stock for the current zeitgeist

Nvidia Earnings on the Horizon: Can the Crypto "Super Bowl" Generate Another Surge?

Nvidia's highly anticipated earnings report is scheduled to be released after the US market closes on Wednesday, and is considered by many industry insiders to be the most significant tech stock earnings release in years. It's been dubbed the "Super Bowl" of the earnings season and is seen as a bellwether stock for the current zeitgeist. The recent strong performance of AI tokens seems to have already cast a positive vote on Nvidia's upcoming report.

Looking at the specific data, AI crypto tokens have surged in the past week. NearProtocol, FET, Bittensor (TAO), Render (RENDER), and other AI tokens have seen significant gains, outperforming the overall cryptocurrency market. Most major AI tokens have fully recovered from the market crash that took place in early August.

• Near, the native token of the Proof-of-Stake first-layer network, has risen 35% in the past week, reaching a four-week high of $5.20 on August 25th.

• The FET token, issued by the Artificial Superintelligence Alliance, has seen an even larger surge, jumping approximately 70% over the past week, reaching $1.39 on August 26th.

• RENDER has accumulated a gain of approximately 40% in the past seven days, climbing to $6.45 on August 26th.

• TAO has also performed exceptionally well, rallying 26% in the past week, breaking through $350 on August 26th.

Over a longer timeframe, the market capitalization of AI crypto tokens has surged nearly 80% in the past three weeks, a remarkable growth rate that highlights the renewed confidence of cryptocurrency investors. The analytics platform Lookonchain posted on X on August 26th, noting the significant gains and highlighting a curious whale trading activity in FET: a whale seemingly regretted selling at a lower price, spending $2.385 million in USDT (Tether) to buy back 1.79 million FET tokens from Binance at a high price of $1.33 on August 25th. This whale had sold 2.33 million FET tokens at $1.02 between August 11th and August 23rd, earning $2.385 million in USDT (Tether).

It's worth noting that AI tokens aren't the only shining stars in the recent market. Certain Wall Street traders are closely watching the direction of Bitcoin, viewing it as a gauge for speculative fervor. They believe it's a barometer of market sentiment. Morgan Stanley has pointed out that Bitcoin has become a valuable leading indicator. "New Bond King" Jeffrey Gundlach has expressed similar views.

Looking back to August 6th, the total market capitalization of AI crypto tokens plummeted to $18.21 billion, setting a new annual low, linked to the overall poor performance of the digital currency market. On that day, Bitcoin's price took a sharp plunge during the session, briefly falling below the $50,000 mark.

AI tokens are digital assets specifically designed to facilitate and support AI-based projects, applications, and services. These cryptocurrencies support various AI-related functionalities.

However, the broader cryptocurrency market witnessed a general slowdown on Tuesday, with Bitcoin falling back to levels seen before Powell's address at the Jackson Hole Global Central Bank Annual Meeting last Friday. After the US market closed on Tuesday, Bitcoin dropped $1,059 in a matter of 5 minutes, settling at $60,203. AI tokens followed suit, indicating a degree of caution in the market before the release of Nvidia's earnings report.

Despite this, the market generally holds an optimistic view regarding Nvidia's current earnings release. Morgan Stanley believes that the earnings are highly likely to surpass expectations, and the market's expectations for the company's next quarter revenue guidance have also been raised. However, more critically, Nvidia needs to alleviate investor concerns about the potential delay of Blackwell. Bank of America believes that the market may be underestimating the risk of Nvidia's performance disappointing.

The implied price volatility of Nvidia's options is 10%, indicating that the stock price could move 10% in either direction. Dan Ives of Wedbush Securities, one of Wall Street's most influential tech bulls, believes that the bull market in US tech stocks is driven by the demand for new data center capacity, which is essential to power the numerous AI chatbots that have emerged in recent years. "There is one company that is the foundation of the AI revolution, and that is Nvidia."

In conclusion, Nvidia's upcoming earnings report will be a focal point for investors. Whether the crypto "Super Bowl" can spark another surge, and if AI tokens can continue their lead, will be unveiled with the release of Nvidia's earnings report.