AI Coins To Remain On Sideline Ahead of Nvidia Earnings; What to Look Out For

The price of AI coins will rise significantly in the wake of Nvidia's impending earnings, independent of macroeconomic variables.
By Nausheen Thusoo
Nvidia to Report Q1 Earnings Next Week; Revenue Forecast at $24.65 Billion

Highlights

  • In the aftermath of Nvidia's extremely encouraging previous results, investor confidence in the AI space experienced an emotional surge.
  • Nvidia's upcoming earnings will be a major boost to the price of AI coins. 
  • The United States' sanctions against Chinese chip manufacturers last year sparked fierce competition between the two countries to lead the AI race.

AI Coins have been on the sidelines, possibly looking for cues to access future trajectories. Apart from macroeconomic factors, Nvidia’s upcoming earnings will be a major boost to the price of AI coins.

In the aftermath of Nvidia’s extremely encouraging previous results, investor confidence in the AI space experienced an emotional surge. Nvidia recorded adjusted profits per share (EPS) of $5.16 for the quarter on $22.1 billion in revenue. Analysts projected $20.4 billion in revenue and $4.60 in earnings per share. Nvidia reported a noteworthy growth in earnings per share (EPS) of $0.88 for the same quarter last year, compared to $6.1 billion in revenue.

Here are some factors from Nvidia’s earnings that can affect AI coins and the market:

Advertisement
Advertisement

China Sanctions and Repercussions

According to Nvidia’s results, “growth was robust everywhere else, except China, where data center revenue drastically decreased due to the US government’s October export restriction regulations.” The United States’ sanctions against Chinese chip manufacturers last year sparked fierce competition between the two countries to lead the AI race. Nvidia has “started shipping alternatives that don’t require a license for the China market,” the company said, despite not having the required authorizations from the US government to export items that are restricted to China.

AI coins will be affected a lot in case the earnings this time show that the sanctions might hurt the company’s earnings.

Advertisement
Advertisement

AI Supply Chain Dynamic

The leading AI company’s supply channels, which have had difficulty meeting the brisk demand for Nvidia processors, are also improving. AI manufacturing will need solid supply chains to ensure that operations can continue even in erratic conditions. The industry standard practice is to diversify into numerous items to trigger problems with satisfying expectations, even though many businesses have difficulties in this regard. Recognizing early warning indicators and proactively and consistently adapting to changing conditions, prevents disruptions to the global flow of goods.

In case the supply chain issues persist, AI coins might see a small downturn in the near term.

Advertisement
Advertisement

AI Segment Growth

AI coins go directly in hand with the AI market sphere. Artificial intelligence is going to be a big revenue stream for IT companies in the future. The future of the sector suggests that artificial intelligence will play a major role in the operations of IT companies. Future user base providers and primary emphasis for many firms will probably be artificial intelligence (AI) due to the frequent release of new product lists and subscription structures.

If Nvidia’s result further cements this idea, AI coins could see a good price surge in the future.

Advertisement
Nausheen Thusoo
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.