Nvidia beats Q4 earnings expectations and triggers a surge in AI-related crypto tokens
Nvidia, the leading chipmaker for artificial intelligence (AI) and gaming, reported stellar 4th-quarter earnings on Wednesday, beating analysts’ expectations and boosting its share price. The company also announced a strong revenue outlook for the 1st quarter of 2024, signaling continued growth in its core businesses.
The impressive results also had a positive impact on the crypto market, especially for tokens related to AI development and computation. These tokens, such as Fetch.AI (FET), SingularityNET (AGIX), and Render (RNDR), saw significant gains following Nvidia’s earnings release, as investors anticipated higher demand for AI-powered solutions and services.
Nvidia’s Q4 Earnings Highlights
According to its earnings report, Nvidia posted a net income of US$12.29 billion for the quarter, up 769% from US$1.41 billion a year ago. The earnings per share (EPS) were US$5.16, surpassing the average estimate of US$4.59 As per FactSet. The revenue also rose 66% year-over-year to US$22.1 billion, beating the consensus of US$20.4 billion.
The company attributed its strong performance to the growth in its gaming and data center segments, which accounted for 83% of its total revenue. The gaming revenue increased 67% to US$11.9 billion, driven by the high demand for its GeForce RTX graphics cards. The data center revenue surged 97% to US$7.1 billion, fueled by the adoption of its Ampere architecture for AI and cloud computing.
Nvidia also provided optimistic guidance for the first quarter of 2024, projecting a revenue of US$24 billion, well above the analysts’ forecast of US$22.2 billion. The company expects its gaming and data center segments to remain the key drivers of its growth, along with its professional visualization and automotive businesses.
AI Crypto Tokens Rally
Nvidia’s earnings also sparked a rally in the crypto market, especially for tokens that are related to AI development and computation. These tokens, such as Fetch.AI (FET), SingularityNET (AGIX), and Render (RNDR), leverage Nvidia’s graphics processors to power their platforms and services.
Fetch.AI is a decentralized network that enables smart agents to perform autonomous tasks using AI and machine learning. SingularityNET is a decentralized marketplace that connects AI service providers and consumers. Render is a distributed network that enables users to rent their idle computing power for rendering 3D graphics and animations.
These tokens saw significant gains following Nvidia’s earnings release, as investors anticipated higher demand for AI-powered solutions and services. According to data from CoinMarketCap, FET rose 5%, AGIX jumped 25%, and RNDR climbed 7% in the span of 24 hours.
