NVIDIA is currently shining on the stock market. The chipmaker’s shares have risen so much that the company is now worth $10 billion more than the entire Russell 2000. Moreover, NVIDIA is now contributing 43% of the S&P 500’s rise through 2024.
AI crypto coins are also responding positively to this development. The market value of this sub-sector within crypto increased by 4% to $39.9 billion.
NVIDIA bigger than the Russell 2000
Nvidia is now larger than the entire Russell 2000, a stock index of smaller companies in the United States.
On Monday, Nvidia recorded trading volume of $45.94 billion. The company surpassed the combined volume of Tesla, Apple, Advanced Micro Devices, Microsoft and Berkshire Hathaway. These companies are the next most traded stocks on the market.
The AI chip maker has had a string of positive performances lately. The Q1 report in May showed earnings per share of $6.12, beating expectations of $5.65. Q1 2024 earnings revenue of $26.04 billion also exceeded forecasts of $24.69 billion by 5.4%.
This grew the company’s profits year-over-year to approximately 262%.
“It is clear that increasing demand for advanced computing power is driving market growth. Nvidia’s current market capitalization reflects its dominant position in the AI sector. However, this increasing demand also underlines the critical need for advances in energy infrastructure to sustainably support these large-scale AI activities.
We see a strong focus on the AI sector, not only on chip development, but also on creating more efficient energy solutions to maintain the growth and scalability of AI technologies,” said Daniel van der Woude, Product Lead at Nuklai.
“The next industrial revolution has begun – companies and countries are working with NVIDIA to shift trillion-dollar traditional data centers to accelerated computing and build a new type of data center – AI factories – to produce a new product: artificial intelligence,” said NVIDIA founder and CEO Jensen Huang in a June 2 report.
As part of this commitment, Nvidia also announced a 10:1 stock split on June 10. This allows employees and private investors to buy Nvidia shares at a lower price.
AI tokens on the rise
While Nvidia outpaces the Russell 2000 and expects a 10-to-1 stock split, AI tokens are also showing strength. This market sector often benefits from positive news about the chip giant. Increasing global demand for AI technologies is driving sales of Nvidia’s high-margin chips.
While AI crypto tokens cannot directly benefit from these gains, Nvidia’s report boosts investor confidence in their viability.
The market cap of all AI tokens has now risen to $39.9 billion. The biggest gainers in the top 10 are Injective (INJ) and Bittensor (TAO), with increases of 6%. Near Protocol (NEAR) and Theta Network (THETA) are both up 4%.
The ASI token, which consists of SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN), is up about 3%. Moreover, the increases in the Bitcoin price also help. Bitcoin managed to climb back up to the $71,000 level yesterday.
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Source: https://newsbit.nl/nvidia-meer-waard-dan-alle-russell-2000-aandelen-bij-elkaar-ai-tokens-reageren-positief/
