As a seasoned observer of the tech and crypto sectors, I must admit that the recent surge in funding for AI-crypto projects has piqued my interest. Having witnessed the internet boom of the late 90s and early 2000s, I can’t help but draw parallels between then and now. Just as companies like Amazon and Google capitalized on the potential of the internet, I believe that the AI-crypto startups are poised to reap similar benefits in this new frontier.
With analyst predictions pointing towards a nearly doubled revenue for NVIDIA, what impact might this significant increase potentially have on cryptocurrencies that are centered around Artificial Intelligence?
Table of Contents
As an analyst, I’m buzzing with excitement about NVIDIA (NVDA), the tech titan that’s been creating quite a stir lately. Known for its high-performance graphics cards and groundbreaking AI advancements, NVDA is all set to reveal its second-quarter earnings for fiscal year 2025 on August 28th.
This year, NVIDIA’s shares have shown exceptional growth, rising more than 173% since the start of the year. On August 27th, the stock was being traded at approximately $127.81.
Experts at FactSet estimate that NVIDIA’s earnings are likely to nearly double, rising from approximately $13.51 billion in the second quarter of their 2024 fiscal year, to around $28.6 billion in the same quarter of their 2025 fiscal year.
Additionally, analyst predictions indicate an impressive growth in earnings per share, potentially reaching 65 cents per share. This represents a substantial 141% rise compared to the previous year.
Nevertheless, things haven’t gone entirely without a hitch. This month, rumors surfaced about potential setbacks for NVIDIA’s new Blackwell AI platform. Allegedly, some design issues have been uncovered that could cause a delay of at least three months in its release.
Nevertheless, significant analysts like those from Goldman Sachs and Loop Capital continue to express optimism about the situation, as stated by Yahoo Finance.
They’re drawing confidence from the robust operation of NVIDIA’s current Hopper platform and better production outcomes at TSMC, their chip manufacturer, as their bases.
Based on their predictions, these experts think that NVIDIA is likely to either match or surpass its projected performance in Q2, and there’s talk among them about the possibility of the company raising its targets for Q3.
“The main topic of discussion right now is, what effect will NVIDIA’s performance have on AI-related cryptocurrency tokens, and what can we expect in terms of future developments for both the technology and crypto industries? Let’s delve into it.”
AI tokens surge on anticipation of strong Nvidia earnings
With eagerness growing towards Nvidia’s Q2 financial results, the buzz is spreading across the cryptocurrency market, notably among tokens specializing in artificial intelligence.
During the last seven days, these digital assets have experienced significant surges, surpassing the overall cryptocurrency market as speculators anticipate robust growth in the artificial intelligence industry.
spearheading this endeavor is the Artificial Superintelligence Alliance (FET) coin, a partnership comprising Fetch.ai, Ocean Protocol, and SingularityNET. Over the past week, the value of FET has significantly increased by approximately 50%, with the current trading price being $1.30 as of Aug. 27th.
The rally was powerful enough that it appeared a whale investor, who offloaded 2.33 million FET tokens from August 11th to August 23rd at $1.02, may have second-guessed their move.
Subsequently, this investor repurchased approximately 1.79 million FET tokens at a raised cost of $1.33 each, amounting to a total expenditure of 2.385 million USDT, as reported by Look On Chain.
One more AI-related token gaining traction is Render, or RNDR. It’s a decentralized platform that enables content creators to utilize spare GPU processing power for digital content rendering.
In the past week, RNDR’s performance has been exceptional, rising more than 36%, and currently trades at $6.08 as of August 27th.
Additionally, NEAR Protocol (NEAR) has hopped onto the upward trend. Over the past week, its native token has increased by almost 20%, currently priced at around $4.76 as of August 27th.
Over the past three weeks, the value of individual AI-related cryptocurrency tokens has risen significantly, and this growth has also boosted the total market capitalization of these tokens. On August 5, the combined market cap was $18.21 billion, but it climbed to $32.74 billion by August 25 – an increase of around 80%. However, as of August 27, the total market cap had slightly decreased to $30.72 billion.
The surge of optimism in the Artificial Intelligence (AI) field has undeniably influenced the value of cryptocurrencies associated with AI. With high expectations for NVIDIA’s performance, investors are strategically moving into the crypto market, focusing on tokens linked to AI. The ensuing events could shape the trajectory of both tech and crypto industries over the next few months.
Funding floods into AI-crypto projects
Not only are AI-related cryptocurrency prices surging, but there’s also been a massive increase in funding for projects combining artificial intelligence and cryptocurrencies. A significant amount of investment is flowing towards these ventures that merge AI and blockchain tech.
A standout instance is PIP Labs, developers of Story Protocol, a blockchain platform at its base level, specifically developed for the tokenization of intellectual property. The objective here is to secure compensation for original authors during an age dominated by AI, a notion that has struck a chord with investors.
As a researcher, I recently learned that on August 21st, PIP Labs successfully concluded a Series B funding round worth $80 million, with a16z crypto taking the lead. This investment significantly boosted the company’s valuation to an astounding $2.25 billion.
Sahara Labs is making waves in the realm of artificial intelligence (AI) and cryptocurrency. This innovative company is working on Sahara AI, a decentralized platform designed to ensure fair compensation for AI contributors. In a recent funding round, they successfully secured $37 million, with Pantera Capital and Polychain Capital leading the investment.
Simultaneously, the firm Sentient – which was established in part by Sandeep Nailwal of Polygon – grabbed attention on July 2nd, successfully raising a massive $85 million during their seed funding round.
Enhancing the tide of investments comes Space and Time, a versatile, confirmable computing infrastructure that bridges the realms of Artificial Intelligence (AI) and blockchain technology.
We’re excited to share that Space and Time Labs has successfully raised a Series A round of $20M, bringing our overall funding to $50 million. This significant investment empowers us to help shape the future in an AI-dominated world, by offering the necessary tools for creating advanced, data-driven solutions within our community. 🚀🕒
— Space and Time (@SpaceandTimeDB) August 27, 2024
On August 27th, it was disclosed that the firm successfully obtained a Series A investment of $20 million, which will strengthen their dominant position in the market. This funding round was backed by venture capital firms like Framework Ventures, Lightspeed Faction, Arrington Capital, and Hivemind Capital.
Following this, we experienced a significant investment round worth $20 million in strategy, spearheaded by Microsoft’s M12 Ventures, which took place in September 2022.
Why AI-crypto is the new frontier
Understanding why AI-cryptocurrency ventures are picking up speed can be facilitated by recognizing similarities with past phenomena, particularly the internet growth spurt during the late 1990s and early 2000s.
In those days, the internet was evolving from a specialized tool to a worldwide powerhouse. Foresighted companies such as Amazon and Google, who saw its potential early on, expanded enormously and became titans in the digital age.
To fully realize the Internet’s capabilities, substantial financial resources were needed for building modern infrastructures like data centers and content distribution systems.
Today, we observe a trend that mirrors the past with artificial intelligence (AI). As AI technologies continue to progress, there’s an increasing need for robust infrastructure that can manage and process the massive amounts of data it produces, which is growing at an exponential rate.
NVIDIA leads the charge in this developing field, as their graphics processors drive many intense artificial intelligence applications. This places them in a pivotal role during the growth and advancement of AI technology.
Furthermore, with AI becoming more integrated across multiple sectors, there will be an increasing demand for robust, secure, and decentralized systems – a specialty of AI-focused cryptocurrency companies.
Combining the robust features of Artificial Intelligence (AI) with the transparency and security offered by blockchain technology, we’re developing a novel category of intelligent digital assets designed to tackle real-life issues effectively and transparently.
In the trajectory I see unfolding, it’s evident that the future of cryptocurrency isn’t confined solely to digital coins, but extends to the brilliant technologies driving them. Keeping a keen eye on this domain seems imperative, for the potentials it harbors are boundless.
Read More
Sorry. No data so far.
2024-08-27 20:31