Nvidia has reported record quarterly earnings and announced a ten-for-one stock split, driving its shares to new highs and influencing AI-focused cryptocurrencies. The Santa Clara-based GPU pioneer revealed it will implement the stock split on June 7, alongside a 150% increase in its quarterly dividend to 1 cent per share on a post-split basis.
BREAKING: Nvidia stock, $NVDA, surges toward $1,000/share after reporting earnings and 10:1 stock split.
The company posted record quarterly revenue of $26 billion on EPS of $6.12, both above expectations.
This marks a 260% jump in year-over-year revenue for the 3rd largest… pic.twitter.com/FcJElzKjCs
— The Kobeissi Letter (@KobeissiLetter) May 22, 2024
A stock split increases share liquidity, making it more accessible to smaller investors. Nvidia shares surged 5.9% to $1,005 in extended trade, adding approximately $140 billion to its market value. The company forecasts second-quarter revenue of $28 billion, surpassing analyst expectations of $26.66 billion. First-quarter revenue rose 262% year-over-year to $26.04 billion, with net income jumping 628% to $14.88 billion.
Impact on AI-Focused Cryptocurrencies
Despite Nvidia’s impressive earnings, AI-related cryptocurrencies did not see an immediate boost. Render (RNDR), a decentralized GPU rendering platform on Ethereum, fell 12% within five hours of the earnings report, dropping to $10.48. At the time of writing, RNDR was down 6.6% with a 24-hour trading volume of $827 million.
🐳 Whale activity has been high among the #AI sector, and #Render has been no exception. A known whale sent 4.89M $RNDR (worth $52.1M) to an unknown wallet earlier today as prices corrected. Those holding this asset should watch for increased volatility. https://t.co/AIKq9INw1M pic.twitter.com/EG1Rd1HhcA
— Santiment (@santimentfeed) May 23, 2024
Historical data suggests potential for a rebound, as RNDR rose 38% within 48 hours of Nvidia’s Q4 earnings in February. Crypto trader D0C Crypto speculated RNDR could surge above $15 if the trend repeats. A whale wallet recently transferred $52.1 million worth of RNDR tokens, indicating anticipation of a “sell the news” event.
Fetch.ai’s token FET dropped 2.8% from $2.65 to $2.45 following Nvidia’s announcement. Other AI tokens like The Graph (GRT) and SingularityNet (AGIX) also recorded drops of 4% to 6%.
Industry Reactions
Crypto market watchers remain hopeful that Nvidia’s strong performance will positively affect AI crypto tokens, as seen in previous market cycles. Tim Zinin, founder of Botanica School, noted that Nvidia’s stock split could boost confidence in tech and AI tokens. Marco Pagnini of Moonwalk Systems highlighted the high correlation between Nvidia stocks and AI tokens, noting the split reduces entry barriers for retail investors. Ignacio Palomera, CEO of Bondex, added that Nvidia’s earnings reports could unite the crypto and machine learning communities, while Zac Shander-Kelsey, CEO of Nodabank, observed that stronger correlations between traditional and crypto markets are likely as retail investors adapt.
