AI tokens are dancing to NVIDIA’s beat — how long will the music last?

With analysts predicting NVIDIA’s revenue to nearly double, how will this potential gain impact AI-focused crypto tokens?

NVIDIA (NVDA) has been the talk of the town, and for good reason. The tech giant, known for its powerful graphics cards and AI innovations, will report second-quarter earnings for fiscal 2025 on Aug. 28.

NVIDIA has already delivered remarkable returns this year, with its stock price up more than 173% since the beginning of the year. As of August 27, NVDA was trading at $127.81.

FactSet analysts predict that NVIDIA’s revenue will nearly double from $13.51 billion in Q2 FY2024 to $28.6 billion in Q2 FY2025.

Earnings per share are also expected to hit a record, with analysts predicting 65 cents per share, a 141% increase from a year earlier.

But all is not well. Earlier this month, reports emerged suggesting that NVIDIA’s latest Blackwell AI platform could face delays due to design flaws, with deliveries set to be delayed by at least three months.

Despite this, major analysts, including Goldman Sachs and Loop Capital, remain optimistic, Yahoo Finance reported.

They point to the strong performance of NVIDIA’s existing Hopper platform and the increasing yields of the company’s chipmaker, TSMC, as an indication of their confidence.

These analysts believe NVIDIA is on track to meet or even exceed Q2 expectations, while some think the company could raise its expectations for Q3.

The big question now is how NVIDIA’s performance will impact AI-crypto tokens and what’s in store for both the tech and crypto sectors. Let’s take a look.

AI tokens rally on Nvidia’s strong earnings forecast

As anticipation builds for Nvidia’s Q2 earnings report, excitement is spreading to the crypto world, particularly AI-focused tokens.

Over the past week, these tokens have made notable gains, outperforming the overall cryptocurrency market as investors bet on a strong performance from the AI ​​sector.

Leading the charge is the Artificial Super Intelligence Alliance (FET) token, a project combining Fetch.ai, Ocean Protocol, and SingularityNET. FET is up nearly 50% in the past seven days, trading at $1.30 as of Aug. 27.

The rally has been so strong that even one whale investor who sold 2.33 million FET tokens at $1.02 between August 11-23 regretted his decision.

This investor later bought back 1.79 million FET tokens at a higher price of $1.33 and spent 2.385 million USDT, according to Look On Chain.

Another AI token on the rise is Render (RNDR), a decentralized GPU rendering network that allows content creators to use idle GPU power to create digital content.

RNDR has also performed stellarly, rising by over 36% in the past week and trading at $6.08 as of August 27.

Meanwhile, NEAR Protocol (NEAR) also joined the rally. NEAR’s native token has gained nearly 20% in the past seven days and was trading at $4.76 as of Aug. 27.

With these individual token gains, the combined market cap of AI-related crypto tokens rose from a 30-day low of $18.21 billion on August 5 to $32.74 billion on August 25 (an increase of approximately 80%) and settled at $30.72 billion as of August 27.

The upward momentum in the AI ​​sector has clearly spilled over into AI-related crypto tokens. As investors await strong results from NVIDIA, they are positioning themselves in the crypto market, especially AI-related tokens. What happens next could set the tone for both the tech and crypto sectors in the months ahead.

Funding flows into AI-crypto projects

Not only are AI tokens increasing in price, funding for AI-crypto projects has also seen a huge increase, with a huge influx of money flowing into startups that combine AI and blockchain technology.

One of the most notable examples is PIP Labs, creators of Story Protocol, a layer 1 blockchain designed to tokenize intellectual property. This project aims to ensure that original creators are rewarded in the age of AI, a concept that has resonated strongly with investors.

PIP Labs closed an $80 million Series B funding round led by a16z crypto on August 21, taking its valuation to an impressive $2.25 billion.

Sahara Labs is another prominent company in the AI-crypto space. The startup is developing Sahara AI, a decentralized platform that promises to pay AI participants fairly. Their recent strategic funding round, co-led by Pantera Capital and Polychain Capital, brought in $37 million.

Meanwhile, Polygon’s Sentient, a startup co-founded by Sandeep Nailwal, made headlines on July 2 by raising a mega seed round of $85 million.

Adding to the wave of investment is Space and Time, a multi-purpose, verifiable computational layer that operates at the intersection of AI and blockchain.

We’re excited to announce that Space and Time Labs has raised $20 million in Series A funding, bringing our total funding to $50 million. 🚀⏳

SxT provides the tools needed to build advanced, data-driven systems to ensure society owns its future in an AI-enabled world. pic.twitter.com/E87cVjtOl5

— Space and Time (@SpaceandTimeDB) August 27, 2024

The company announced on August 27 that it has secured $20 million in Series A funding to continue its market leadership, led by venture capitalists including Framework Ventures, Lightspeed Faction, Arrington Capital, and Hivemind Capital.

This development comes on the heels of Microsoft’s $20 million strategic funding round in September 2022 led by M12 Ventures.

Why AI-crypto is a new frontier

To fully understand why AI-crypto projects are gaining momentum, it’s helpful to draw historical parallels, particularly with the internet boom of the late 1990s and early 2000s.

At the time, the internet was evolving from a niche technology to a global force, and companies that recognized its potential early on (like Amazon and Google) became giants of the digital age.

This transformation required major investments in new infrastructure such as data centers and content delivery networks to unlock the full potential of the Internet.

We see a similar pattern with AI today. As AI advances, the demand for infrastructure that can handle the massive data it generates and processes is increasing rapidly.

NVIDIA is at the forefront of this trend, supporting some of the most demanding AI applications with their GPUs, making them a major player in the ongoing AI expansion.

Additionally, as AI becomes more integrated into various industries, the need for decentralized, secure systems like those developed by AI-crypto startups will continue to grow.

By combining the strengths of AI and blockchain, we are creating a new class of smart digital assets that are secure, transparent, and able to address real-world challenges.

As this trend continues, it’s clear that the future of cryptocurrencies lies not just in digital currencies, but in the intelligent systems that support them. This is an area to keep a close eye on, as the possibilities are truly endless.

Disclosure: This article does not provide investment advice. The content and materials contained on this page are for educational purposes only.