AI Tokens Rally in Anticipation of Nvidia’s ‘Super Bowl’ Earnings Report

Artificial intelligence (AI) cryptocurrencies have experienced significant growth in the past week, driven by excitement surrounding Nvidia’s upcoming second-quarter earnings report.

AI-focused tokens like Near Protocol, Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have all seen their prices surge, outpacing the broader cryptocurrency market.

Near Protocol, a proof-of-stake layer-1 network, saw its native token increase by 35% over the last week, reaching a four-week high of $5.20 on August 25.

The Artificial Superintelligence Alliance, which includes Fetch.ai, Ocean Protocol, and SingularityNET, experienced even more substantial gains. The FET token soared by nearly 70% within a week, climbing to $1.39 on August 26.

Onchain analytics platform Lookonchain noted the impressive gains and highlighted unusual whale activity involving FET in an August 26 post on X. It observed that a whale appeared to regret an earlier sale, spending $2.38 million Tether to repurchase 1.79 million FET tokens from Binance at a higher price of $1.33 on August 25.

Other AI-related crypto assets also performed well, with TAO gaining 26% over the week, reaching over $350 on August 26. RENDER also saw an increase of around 40% over the same period, hitting $6.45 on August 26, according to CoinGecko.

Most major AI tokens have now fully rebounded from the market downturn earlier in August.

Nvidia described as “most important tech earnings in years”

The recent surge in AI-related assets comes as markets brace for one of the most critical tech earnings reports of the year. Nvidia is set to release its Q2 results on Wednesday, August 28.

Dan Ives, a top tech analyst at Wedbush Securities, referred to this as “the most important tech earnings in years” in a Fortune interview on August 23. He believes that the current tech bull market is fueled by the growing demand for new data center capacity, essential for running the numerous AI chatbots that have emerged recently. In a note dated August 22, Ives wrote:

“There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia.”

Mike Smith, a portfolio manager at Allspring Global Investments, commented to Reuters, “Nvidia is the zeitgeist stock today,” adding, “You can think of their earnings four times a year as the Super Bowl.”

Nvidia’s revenue saw an 18% increase between Q3 2023 and Q1 2024 and has soared 262% over the past year.

Nvidia’s stock price has skyrocketed by an impressive 180% over the past 12 months, reaching an all-time high of $135 in mid-June. After recovering 30% since the market decline in August, it traded just below $130 at the close of markets on Friday, August 23.