AI Crypto Tokens Sink Despite Strong Nvidia Earning Report

Key Takeaways

• AI crypto tokens plummeted following the release of Nvidia’s Q2 results.
• Nvidia’s Q2 results showed impressive revenue and profit growth. 
• CEO Jensen Huang quelled concerns of a delay to the company’s new Blackwell chips. 

Over the past seven days, AI tokens have grown significantly in anticipation of Nvidia’s highly anticipated earnings report. 

However, in a surprising turn of events, the momentum reversed following the release of Nvidia’s second-quarter 2024 earnings on Wednesday, August 28.

Despite exceeding analyst expectations and posting growth, AI crypto tokens took a hit, leaving investors to reel from an unexpected market reaction.

Nvidia’s Q2 Report Is Good, but Not Incredible

On Aug. 28, Nvidia reported a second-quarter revenue of $30 billion, marking a 122% leap from last year. The AI giant reported $15.1 billion in revenue, up from about $6.2 billion a year earlier.

Nvidia’s data center business, which accounted for 88% of total sales, also climbed 154% to $26.3 billion.

However, the company’s growth has slowed considerably. Nvidia’s last results, released in May, showed annual revenue growth of 262%.

Shares in Nvidia were down almost 7% following the report.

AI Crypto Tokens Sink

Artificial Superintelligence Alliance (FET), a consortium of Fetch.ai, SingularityNET, and Ocean Protocol, fell 7.8% to $1.1663 just hours after the release of Nvidia’s earnings. 

Render, the utility token of the Render Network, a decentralized GPU-based rendering and machine learning platform provider, fell 4.5% to $295.

Bittensensor, which uses blockchain and decentralized systems to create a market for AI, fell 4.5% to $295. 

AI Spending Not Slowing Down Anytime Soon

Over the past year, concerns about a potential future slowdown in AI spending have been directed at Nvidia’s business plan. This could negatively impact the company as its business relies heavily on several large customers, such as Amazon, Meta, and Microsoft.

When questioned about this on Wednesday, Jensen Huang, Nvidia’s CEO, attempted to quell concerns by stating that the need for GPU chips was not going away anytime soon.

Huang said the industry race to build powerful large language models and expand AI services will continue to require more powerful AI chips.

Nvidia Says Its Blackwell Plans Are Still on Track 

In August, The Information reported  that Nvidia’s upcoming AI chip, the B200 chip, could be delayed up to three or more months due to a design flaw.

Nvidia CEO Jensen Huang said the issue had been resolved on Wednesday and that “no functional changes necessary.”

Huang said the chips, which are based on Blackwell infrastructure, will be a “complete game changer for the industry.”

The company said it expects to ship “several billion dollars in Blackwell revenue” in the fourth quarter of the year.

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

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