Crypto AI tokens surge on Nvidia’s $1 trillion valuation
- Nvidia’s market cap reaching $1 trillion has been aided by the boom in artificial intelligence.
- The company is now part of an exclusive group of US companies that includes Apple, Microsoft, Alphabet, Amazon, and Saudi Aramco.
- Cryptocurrencies based on AI such as Render, SingularityNET, Fetch.ai, and Akash Network have also seen a surge in value due to the hype around AI.
On Tuesday, Nvidia Corp (NVDA) joined a select group of US companies with a market value of $1 trillion, as investors flocked to the chipmaker, which has become one of the biggest beneficiaries of the AI boom.
The growing optimism around AI is also affecting the ecosystems of leading cryptocurrencies powered by artificial intelligence. Many of these saw gains on Tuesday.
Akash Network (AKT), which provides an open and peer-to-peer marketplace for cloud resources, saw its native token rise by nearly 20%.
Dynex (DNX), a neuromorphic supercomputer, rose by 35%. Meanwhile, top AI tokens that have surged in recent weeks, including Render (RNDR), SingularityNET (AGIX), and Fetch.ai (FET), all gained more than 5%.
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Nvidia’s Journey to a $1 Trillion Market Cap
Nvidia, which has long been the leading producer of video game graphics cards, has seen its valuation more than double in the past six months. The company’s market fortunes have been boosted by the soaring demand for generative AI tools that are taking the world by storm.
Now the company is looking to join the exclusive club of just five companies, four of which are US-based, that are valued at $1 trillion or more. Market analyst Holger Zschaepitz pointed this out in a tweet.
As of May 2023, this club is led by Apple, which currently has a market cap of over $2.8 trillion. Microsoft Corp is valued at $2.47 trillion, Alphabet at $1.57 trillion, and Amazon at $1.24 trillion. The non-US company in this category is oil giant Saudi Aramco.
Tesla, Meta, and PetroChina, a Chinese oil giant, previously reached this milestone.
