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Nvidia Tops Microsoft, Apple in Market Cap; AI Crypto Tokens Fetch.AI and Render Rally

3 mins
Updated by Lynn Wang
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In Brief

  • Nvidia surpasses Microsoft and Apple, becoming the most valuable company globally.
  • The market cap surge drives a rally in AI-themed crypto tokens, notably FET and RNDR.
  • Nvidia’s success highlights the growing interconnectedness of AI and crypto sectors.
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On Tuesday, Nvidia, the American manufacturer of graphics processing units (GPUs), surpassed technology giants Microsoft and Apple as the most valuable company.

This surge in Nvidia’s market capitalization has sparked a rally in AI-themed cryptocurrencies.

AI Tokens Rally as Nvidia Tops Tech Giants

According to the latest data, Nvidia’s stock (NVDA) price is now $135.58, with a market capitalization of $3.33 trillion. Meanwhile, Microsoft and Apple have market capitalizations of $3.31 trillion and $3.28 trillion, respectively.

Read more: 9 Best Artificial Intelligence Stocks To Buy in 2024

Nvidia Market Capitalization.
Nvidia Market Capitalization. Source: CompaniesMarketCap

The key driver of this growth is the demand for artificial intelligence (AI) products, which have become increasingly integral across various industries since 2023. Nvidia’s Q1 2024 earnings report shows that its data center category saw a 427% increase in revenue to $22.56 billion. This category includes AI chips and components for AI servers.

Nvidia’s success has also impacted the crypto market. Major AI-themed cryptocurrencies, including Fetch.AI (FET) and Render (RNDR), have substantially increased in the last 24 hours. 

FET’s price has increased by 16.3%, now valued at $1.33. Meanwhile, RNDR has seen a 10.3% rise, currently trading at $7.75. Additionally, data from the on-chain analytic tool Santiment shows that RNDR has experienced a 33.33% increase in social volume changes during this period.

FET Price Performance.
FET Price Performance. Source: BeInCrypto

Edward Wilson, an analyst at Nansen.ai, shared his perspectives on the current situation with BeInCrypto. He acknowledged that AI is currently a hot sector in both traditional markets and crypto.

“It should come as no surprise that on the back of Nvidia becoming the world’s most valuable company that AI tokens like NEAR, RNDR and others are rallying. Both of these tokens are up around 300% in the past year, compared to ETH at just over 100% during the same time period, showing high market interest in this sector,” he noted.

In the longer term, Nvidia’s influence on the AI and crypto sectors is expected to be profound. A report by asset manager Bitwise highlights how the AI boom has significantly impacted data centers, creating a shortage of AI chips and access to electricity. 

Bitcoin miners, equipped with powerful chips and advanced cooling systems, provide the necessary infrastructure for AI companies. As a leading manufacturer of AI chips and GPUs for crypto mining, Nvidia can gain considerably from the increasing demand.

Greg Beard, CEO of Stronghold Digital Mining, noted that research analysts are sounding the alarm about the rising power demand driven by the expansion of AI data centers. He cites an April Goldman Sachs report stating that data center power demand, excluding crypto, is expected to grow by 160% in 2030 compared to 2023.

However, the infrastructure is insufficient to meet the demand. Moreover, Beard pointed out that the US electric industry hasn’t developed new baseload power infrastructure in almost twenty years.

Read more:  Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

“AI developers are well-capitalized and in a hurry to build but face serious barriers to accessing power. The most obvious access to this power is existing Bitcoin mining sites already connected to increasingly valuable power sources. The only way for AI developers to attempt to overcome the resource gap and solve their future energy needs is to develop new sites and repurpose existing ones–like Bitcoin miners,” Beard told BeInCrypto.

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Lynn Wang
Lynn Wang is a seasoned journalist at BeInCrypto, covering a wide range of topics, including tokenized real-world assets (RWA), tokenization, artificial intelligence (AI), regulatory enforcement, and investments in the crypto industry. Previously, she led a team of content creators and journalists for BeInCrypto Indonesia, focusing on the adoption of cryptocurrencies and blockchain technology in the region, as well as regulatory developments. Prior to that, at Value Magazine, she covered...
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