2024-6-6 22:13 |
Nvidia Corp traded $10 billion higher than all the stocks in the Russell 2000 on Tuesday, accounting for nearly 43% of the S&P 500 market cap gain year-to-date.
AI crypto coins have reacted to the positive news, causing the sector’s market capitalization to rise 4% to $39.9 billion.
Nvidia Outperforms Russell 2000 StocksAccording to a post on X by Eric Balchunas, an analyst from Bloomberg Intelligence, Nvidia Corp has outperformed the Russell 2000 Index by a staggering $10 billion. The Russell 2000 tracks the 2,000 smallest stocks out of the 3,000 stocks in the Russell 3000 Index, a benchmark US stock market index.
On Monday, Nvidia recorded up to $45.94 billion in volume. This beat the combined volumes of Tesla Inc., Apple Inc., Advanced Micro Devices, Microsoft Corp, and Berkshire Hathaway. These companies are the next most traded stocks in the market.
The AI chipmaker has recorded a series of positive performances of late. Its Q1 report in May revealed earnings per share of $6.12, beating expectations of $5.65. Revenues of $26.04 billion in its Q1 2024 earnings also surpassed analysts’ predictions of $24.69 billion by 5.4%. With this, the firm’s year-on-year earnings grew to about 262%.
“It’s evident that the increasing demand for advanced computational power is driving the market growth. Nvidia’s current market cap reflects its dominant position in the AI sector. However, this surge in demand also highlights the critical need for advancements in power infrastructure to sustainably support these large-scale AI operations. We are seeing significant bets in the AI sector, focusing not only on chip development but also on creating more efficient energy solutions to maintain the growth and scalability of AI technologies,” Daniel van der Woude, Product Lead at Nuklai, told BeInCrypto.
Read more: AI Stocks: Best Artificial Intelligence Companies To Know in 2024
Stocks by Trading Volume: Source: Google FinanceNow, standing at the forefront of technology firms pushing to build AI into their products and services, Nvidia has committed to spearhead the next industrial revolution.
“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence”, NVIDIA founder and CEO Jensen Huang said in a June 2 report.
As part of this commitment, Nvidia also announced a 10:1 stock split slated for June 10. This would allow employees and retail investors more affordable entry into Nvidia stock with easy purchase.
AI Tokens on the RiseAs Nvidia outperforms the Russell 2000 and anticipates a 10-to-1 stock split, AI tokens demonstrate notable strength. This market sector often benefits from positive news about the chip giant. The increasing global demand for AI technologies boosts sales of Nvidia’s chips by wide margins. Although AI crypto coins cannot benefit directly from these earnings, Nvidia’s report boosts investors’ confidence in their viability.
CoinMarketCap data shows a 4% surge in the market capitalization of AI crypto coins to reach $39.9 billion. The biggest gainers among the top 10 include Injective (INJ) and Bittensor (TAO), up 6%.
Read More: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024
The Near Protocol (NEAR) and Theta Network (THETA) are up 4%. The ASI token, comprising SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN), is up around 3%. Furthermore, the strength of the Bitcoin price, which hints at a strong bullish sentiment in the market, adds a layer of urgency.
The post Nvidia Beats Russell 2000 Stocks By $10 Billion, AI Tokens React appeared first on BeInCrypto.
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