Shares of Nvidia (NVDA), one of the leaders in artificial intelligence (AI), face a decisive week. The company, which has become the driving force behind cloud AI infrastructure and high-end devices, could see significant fluctuations in its value depending on the level of demand for its products.
That’s because the chipmaker’s biggest customers, including Microsoft Corp., Alphabet Inc. (Google), Amazon.com Inc. and Meta Platforms Inc., They will publish their financial results this week.
Market operators will be especially attentive to companies’ capital spending announcementssays a report from Bloomberg.
These technological giants are big consumers of the computing power offered by Nvidia’s GPUs (Graphic Processing Units). An increase in capital spending means these companies are investing heavily in technology infrastructure, which in turn translates into greater demand for high-end GPUs like those from Nvidia.
This group of technological giants It represented more than 40% of Nvidia’s sales in the second quartera significant figure that makes it clear why any variation in its disbursements can affect the American company.
Bloomberg analysts have projected that together, these companies could have achieved record capital spending of approximately $56 billion in the third quarter, as seen in the chart below.
Nvidia GPUs are essential tools for processing large volumes of data and performing complex calculations. This makes them ideal for training AI models, an area in which companies from all sectors are investing heavily.
The capital expenditure reports of these companies will therefore be a key indicator of demand for AI technology in the coming quarters.
The anticipation is such that any disappointment in the pace of these disbursements could not only send Nvidia shares reeling, but could also ripple through the AI cryptocurrency market.
For now, Nvidia shares have set a new all-time high last week, as seen in the following chart. TradingView.
With a market capitalization close to 3.5 trillion dollarsNvidia has managed to make expectations about AI grow in proportion to its own value.
Volatility could be present in the AI crypto market
For AI-related tokens, this scenario also creates days of extreme volatility.
In the past, when Nvidia has filed its financial reports, IA cryptocurrencies have seen sharp movements in their prices.
In fact, despite Nvidia’s good performance in the previous quarter, several of these cryptocurrencies experienced falls, as reported by CriptoNoticias.
Meanwhile, the top 5 AI cryptocurrencies by market capitalization, have seen price drops in the last 7 days. The most pronounced was that of NEAR Protocol (NEAR) with a decrease of 13%, as seen in the graph of TradingView.
NEAR, a layer 1 network designed as a community-run cloud computing platform, has been among the hardest hit cryptocurrencies.
What relationship does AI have with cryptocurrencies?
This connection between AI and cryptocurrencies is not coincidental. artificial intelligence is transforming technology in multiple sectors, and its synergy with cryptocurrencies is increasingly evident.
The areas of security, mining, development of new financial products and creation of cryptoassets are benefiting from this technological intersection.
AI, by being able to analyze large volumes of data in real time, helps identify patterns and prevent fraudulent activities, reinforcing the security of transactions in the world of cryptocurrencies. It also optimizes mining, enabling more efficient hardware and software configurations that maximize profitability and reduce energy consumption.
Furthermore, AI and cryptocurrency networks combine to create innovative financial productssuch as self-executing smart contracts and decentralized lending systems.
The week that begins will, without a doubt, be of great importance both for Nvidia and for cryptocurrencies linked to artificial intelligence. The expectation of high capital expenditures in AI and the potential for strong demand for GPUs will be reflected in the markets.
At the same time, AI Crypto Tokens Set for Volatile Weeksince any sign of growth or slowdown in the AI sector could translate into significant fluctuations in its prices.
