No love for crypto markets after Nvidia earnings report

The AI ​​and semiconductor giant announced its second-quarter earnings on Aug. 28 with net income rising to $16.6 billion.

The tech giant posted revenue of $30 billion, up 122% year-over-year and 15% quarter-on-quarter.

The bullish earnings report could boost the growing AI sector and have a knock-on effect on crypto assets, but that has yet to be seen today.

Nvidia earnings beat estimates

The company beat Wall Street estimates with the profit jump, but investors were unimpressed as the company’s shares fell nearly 8% in after-hours trading with NVDA falling to around $117.

Despite the revenue growth, “the bar seems to have been set a little too high this earnings season,” said Carson Group chief market strategist Ryan Detrick, who told the AP:

“The size of the beat this time was much smaller than we’ve been seeing. There was even some forward guidance, but again not to the tune of previous quarters.”

In an earnings call with investors, Nvidia founder and CEO Jensen Huang said, “People who invest in Nvidia’s infrastructure get returns right away,” before adding, “It’s the best infrastructure in ROI, the IT infrastructure investment you can make today.”

The company’s chief financial officer, Colette Kress, attributed the growth to GPU sales and enthusiasm for the company’s new Blackwell chips.

Nvidia has become the market leader in the AI ​​sector and is now valued at more than $3 trillion as demand for generative AI products boosted sales of the company’s specialized processors.

Crypto acting like someone leaked NVIDIA earnings.

— Adam Cochran (adamscochran.eth) (@adamscochran) August 27, 2024

Crypto market outlook

AI-based tokens have been on the rise recently, leading to the much-anticipated earnings report.

AI tokens such as Near Protocol (NEAR), Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have seen gains outperforming the broader crypto market over the past week or so.

However, crypto markets have crashed hard this week, with total capitalization shedding around $200 billion since the weekend.

Bitcoin led the decline with a drop to $58,000 on August 27, and AI-based altcoins have followed suit as the market cools.

With Nvidia’s earnings report out of the way, investors are looking to September and a cut in US interest rates for a possible boost to the crypto market.

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