AI tokens record double-digit gains as market cap doubles within a month

While many attributed the recent surge in AI tokens to Nvidia’s massive earning reports, data indicate AI tokens have been on a positive trajectory over the past month.

Many artificial intelligence (AI)-based crypto tokens and traditional stocks recorded positive growth on Feb. 21 despite a broader market correction. Popular AI-based crypto tokens posted double-digit gains after the market cap of these tokens more than doubled in a month.

Render (RNDR), an Ethereum-based network that facilitates decentralized GPU rendering, has surged over 17% in the past 24 hours. Similarly, The Graph (GRT), an indexing protocol for efficiently querying blockchain data, has increased by 18% over the past 24 hours. Fetch.AI (FET) is up 11%, while SingularityNet (AGIX) recorded a 33% daily surge.

The total market cap of AI-based tokens surged by over 9% to $17.8 billion since Nvidia’s quarterly earnings report. The market cap for AI tokens has jumped from $7 billion to $17 billion this month.

The AI tokens got a boost from Nvidia’s recent earning report, but AI-related tokens momentum has been on the rise since last week, hitting the highest weekly trade volume in a year after OpenAI announced its text-to-video tool Sora.

Many attributed the favorable market growth of AI tokens to Nvidia’s latest fourth-quarter earning report that surpassed market estimation. The chipmaker posted a revenue of $22.1 billion, higher than Wall Street’s estimated $20.4 billion. Nvidia’s AI data center revenue quintupled in the January quarter versus the prior year,

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Nvidia CEO Jensen Huang also credited the boost in sales and revenue to the surge in the global demand for generative AI. The chipmaker boasts a market capitalization of $1.67 trillion, overtaking Tesla as the world’s most traded stock.

The boost in Nvidia’s AI businesses reflected on the AI crypto market and helped several AI-focused stocks record new highs. Nvidia supplier and the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), jumped as much as 2.05% during morning hour trade on Feb. 21.

Similarly, stocks of server component supplier Super Micro Computer rose 11.42% during after-hours trading on Feb. 20. Dutch chip equipment manufacturer ASML rose 2.7% during after-hours trading.