Artificial intelligence-related cryptocurrency tokens led market gains on Wednesday, posting significant price increases while the broader crypto market remained subdued. The sector's strength comes as chip manufacturer Nvidia prepares to release its fourth-quarter earnings later today.
Several AI-focused tokens recorded double-digit percentage increases, according to data from cryptocurrency price tracking website CoinGecko. Story (IP), AI Rig Complex (ARC), Livepeer (LPT), and aixbt by Virtuals (AIXBT) were among the strongest performers.
Other AI-related cryptocurrencies including Near Protocol (NEAR), SingularityNET (AGIX), Internet Computer (ICP), and Render (RNDR) also showed positive movement, though with more modest single-digit gains.
The AI token sector's outperformance stands in stark contrast to the broader cryptocurrency market conditions. Bitcoin traded below the psychologically important $90,000 level, hovering around $88,000. The total cryptocurrency market capitalization decreased by almost 3 percent over the 24-hour period on Wednesday.
Market analysts attribute the AI token price surge to anticipation surrounding Nvidia's upcoming earnings announcement. "The crypto market rebounded today, with AI-related tokens leading the way. Will NVIDIA's earnings push AI tokens even higher?" noted a popular account on social media platform X.
Nvidia will release its Q4 fiscal year 2025 earnings report after markets close today. The report covers the period from November 1, 2024, to January 31, 2025. The announcement is widely anticipated due to Nvidia's dominant position in AI chip development and its influence on the broader artificial intelligence sector.
A strong earnings report from Nvidia could further boost AI cryptocurrency tokens, which often track the company's performance as a proxy for growth in the artificial intelligence sector. "If Nvidia earnings are good AI coins are going to put in god candles," observed one social media commentator. However, market participants note that concerns about AI efficiency improvements potentially reducing demand for Nvidia's high-end processors could introduce volatility.
According to Nasdaq data, analysts expect Nvidia to report Q4 FY2025 revenue of $38.32 billion. This represents a 73 percent year-over-year increase and exceeds the company's previous guidance of $37.5 billion. Net income is projected to reach $21.08 billion, up from $12.84 billion in the comparable period last year.
Investor sentiment toward Nvidia remains predominantly positive. Seventeen out of eighteen analysts rate the stock a "buy," with a consensus price target of $175. This suggests a potential 38 percent upside from its current trading price of $126.50.
Despite the positive analyst outlook, Nvidia's stock has experienced a 15 percent decline from its January peak. The pullback followed reports that Chinese research laboratory DeepSeek had developed methods to train AI models with reduced computing requirements.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.