Considering its size and importance, the upcoming Nvidia (NASDAQ: NVDA) earnings report – scheduled for release after the closing bell on November 20 – is widely seen as a pivotal moment likely to have a wide-ranging effect on various even mildly related assets.
The publication of strong figures would likely reinforce that the artificial intelligence (AI) boom is not far from its peak or end and could drive much of the tech sector higher. A miss or underperformance would probably shake investor confidence and almost certainly lead to at least a short-term downturn.
AI cryptocurrencies are among the assets most likely to have an immediate strong reaction to earnings and are, therefore, highly attractive assets for investors seeking to profit rapidly from the figures once they are published.
Picks for you
Render (RNDR)
Render (RNDR) is perhaps the first digital asset to come to mind once NVDA stock is brought up thanks to its reputation as the ‘Nvidia of crypto.’
It owes its nickname to the fact it is a decentralized GPU rendering platform that utilizes blockchain technology to connect artists and creators with GPU power. The token has been trading at relatively depressed prices since Nvidia’s previous earnings report but has gained significant steam within the last two weeks.
In total, RNDR is up 49.78% in the last 30 days, showcasing significant positive momentum. At press time on November 20, it was trading at $7.88.
Still, Render’s historical performance indicates that the upcoming earnings will likely have a positive effect on the cryptocurrency’s price, but traders should also keep an eye out for a sudden reversal.
Indeed, the February earnings led to a massive rise from about $6.5 to the March peak above $13, but in May and August, the upsides were far more limited and short-lived.
Artificial Superintelligence Alliance (FET)
Elsewhere, the Artificial Superintelligence Alliance (FET), which consists of Fetch.ai, Ocean Protocol, and SingularityNET, might be more enticing as Nvidia’s earnings report approaches.
While the historical chart reveals uncertainty akin to Render – the February figures triggered a massive rally, May led to a decline, and August to a more modest but sustained rally – FET is more of a slow burn, providing investors with a greater reaction time.
Specifically, it nearly tripled in value after the Q4 2023 report but rallied 82% ahead of the Q1 earnings, only to dump 32% soon after. The Q2 report featured a similar pump-dump dynamic, but the post-earnings fall proved to be a consolidation phase before another rally that came about two weeks later.
Additionally, FET’s rally in recent weeks has been less pronounced, and the cryptocurrency is, at press time, only slowly recovering from the major November 11 price collapse. Though this indicates less momentum behind the Artificial Superintelligence Alliance, it simultaneously decreases the odds of it being at unstably high prices.
At press time on November 20, FET is trading at $1.28.
The Graph (GRT)
The thesis behind The Graph (GRT), a blockchain indexing protocol for querying data, is similar to the other two prominent AI cryptocurrencies. Thanks to its prominence as an artificial intelligence token, it has historically reacted significantly to Nvidia earnings reports.
Still, like FET and RNDR, its track record is spotty. It enjoyed a massive rally after the February figures were released, collapsed essentially immediately after the May report, and experienced a delayed rally between August and September.
Still, GRT boasts stronger positive momentum than FET. Additionally, as it is 35.69% up in the last 30 days, it isn’t at unstable heights as RNDR. At press time, The Graph is changing hands at $0.23.
Finally, it is worth pointing out that despite the fact that the three digital assets offer the possibility of massive returns, they remain highly risky bets that could go either way due to the cryptocurrency market’s volatility and the uncertainty surrounding Nvidia’s earnings.
While Nvidia has a history of beating forecasts and an overall strong track record, the difference between predictions and results has been diminishing in recent quarters.
Furthermore, as evidenced by firms like Advanced Micro Devices (NASDAQ: AMD), should Nvidia exceed expectations but by a smaller margin than was hoped for, traders could still view the report as something of a failure and begin selling.
Featured image via Shutterstock
