Digital asset markets have continued to tank with no boost from the highly anticipated earnings report from tech and artificial intelligence giant Nvidia.
The AI and semiconductor giant announced its second-quarter earnings on Aug. 28 with a net income increase to $16.6 billion.
The tech giant reported revenue of $30 billion, up 122% year-over-year and 15% quarter-over-quarter.
The bullish revenue report could boost the burgeoning artificial intelligence sector and have a knock-on effect on crypto assets, but that has yet to be seen today.
Nvidia Earnings Beats Estimates
The firm beat Wall Street estimates with the jump in profit but investors were not impressed as company stock tanked almost 8% in after-hours trading with NVDA falling to around $117.
Despite the growth in revenue, “it appears the bar was just set a tad too high this earnings season,” said chief market strategist at Carson Group, Ryan Detrick, who told AP:
“The size of the beat this time was much smaller than we’ve been seeing. Even future guidance was raised, but again not by the tune from previous quarters.”
In an earnings call to investors, Nvidia founder and CEO Jensen Huang said, “The people who are investing in Nvidia infrastructure are getting returns on it right away,” before adding, “It’s the best ROI infrastructure, computing infrastructure investment you can make today.”
The firm’s chief financial officer, Colette Kress, attributed the growth to GPU sales and excitement over the company’s new Blackwell chips.
Nvidia has become a market leader in the AI sector and is now valued at over $3 trillion as demand for generative AI products fueled sales of the firm’s specialized processors.
Crypto Market Outlook
Artificial intelligence-based tokens have been on a roll recently, leading up to the highly anticipated revenue report.
AI tokens such as Near Protocol (NEAR), Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have all seen gains outpace the broader crypto market over the past week or so.
Nevertheless, crypto markets have tanked hard this week, with total capitalization dumping around $200 billion since the weekend.
Bitcoin led the fall with a decline back to $58,000 on Aug. 27 and AI-based altcoins have followed suit as the market cools.
With the Nvidia earnings report now out of the way, investors are looking towards September and an interest rate reduction in the United States for possible crypto market momentum.