Giant chipmaker Nvidia (NVDA) could help determine later today if the artificial intelligence frenzy is real or just another bubble ready to burst – and take AI-related crypto tokens on a wild ride, said Nvidia’s first quarterly report since May. After the report, AI-related cryptocurrencies surged, but quickly lost their gains. Tokens such as Fetch.ai (FET), The Graph (GRT), Injective (INJ), Render (RNDR) and SingularityNET (AGIX) remain higher year-to-date, suggesting investors remain intrigued by the intersection of crypto and AI.
Today’s earnings could show how AI may change corporate strategy at crypto miners. While the equipment they use is fine-tuned for crypto and cannot necessarily be shifted over to processing AI, their expertise and physical space in data centers could help them dive into AI. Miners like Applied Digital (APLD), Iris Energy (IREN), Hut 8 (HUT) and Hive (HIVE) have already started to revitalize their data centers to accommodate AI and other computing services as mining has become less profitable during the prolonged bear market.
If Nvidia can prove that AI is becoming a major moneymaker, that could be a boon for the tech firms that are adopting the technology en masse, as well as for AI-related crypto tokens’ sentiment, at least in the short term. Depending on how the guidance from Nvidia goes, the prices of mining stocks could also be affected.