Date: Fri, Sept 06, 2024, 09:02 AM GMT
The past week has been tough for the cryptocurrency market, particularly for top AI tokens like Artificial Superintelligence Alliance (FET), Render (RENDER), and Bittensor (TAO). These tokens have experienced significant losses over the last seven days after Nvidia’s shares took a sharp hit.
On September 3rd, Nvidia’s stock dropped over 9%, leading to a massive $280 billion loss in market value. The crash was triggered by news that the U.S. Department of Justice (DOJ) issued a subpoena to Nvidia, sparking fear among investors.
In a turn of events, Nvidia has denied the DOJ’s subpoena claims, which has helped to rebuild some market confidence. A company spokesperson also mentioned that Nvidia is ready to cooperate with regulators if needed, which has further reassured investors.
Amid these developments, Bank of America (BofA) has doubled down on its positive outlook for Nvidia’s stock. The BofA analysts have maintained their buy rating on NVDA, reaffirming a price target of $165. They pointed out the “compelling growth” potential of the company, noting that despite the current challenges, Nvidia’s stock remains a strong pick for investors. The recent price dip may even present a good buying opportunity.
Will AI Tokens See a Comeback?
The renewed optimism around Nvidia has led to speculation that the AI crypto sector could also see a recovery. Even though AI tokens are still struggling due to the broader market downturn, these recent developments with Nvidia might help lift the market mood.
Historically, AI-related cryptocurrencies often mirror the performance of major AI companies. Positive developments in the tech space, especially in artificial intelligence, tend to boost the value of these tokens.
With Nvidia’s stock showing signs of recovery, the question now is whether AI tokens will follow suit.
Disclaimer: The content presented in this article is intended for informational purposes only and should not be construed as financial advice.