Nvidia Q2 2024 Earnings Surge 122%, Potential Spike for AI-Related Crypto Assets?

US-based chip maker Nvidia has released its earnings report for the second quarter of 2024, which ended July 28. The firm reported $30 billion in revenue earnings, reflecting a 122% surge from Q2 2023.

Amid several legal challenges, Nvidia exceeded analysts' expectations for the quarter, with revenue close to Q3 predictions of $32.5 billion.

Notably, Nvidia's report highlights its pioneering position in the industry amid the rapid proliferation of the AI chip market. However, will the firm's Q2 earnings trigger a potential spike for AI-based crypto assets in the future?

Nvidia Revenue Earnings Records a 122% Year-Over-Year Increase

According to Nvidia's Q2 earnings report, the chip maker accumulated about $30 billion in revenues, 15% higher than the previous quarter. This figure represents a 122% increase compared to earnings in the same period last year.

In addition, the tech firm reported $0.68 earnings per share, showing a 168% year-over-year rise. This value indicates a 12% growth from the last quarter's earnings of $0.60 per share.

Nvidia's report exceeded analysts' estimates of $28.72 billion in revenue and $0.64 per share in earnings. Meanwhile, Nvidia projects a revenue of $32.5 billion for the third quarter, surpassing several market expectations.

The company's data center business stood out, contributing about 87% of the total revenue. Nvidia amassed $26.3 million in revenue from its data center sales.

Notably, the recent growth in AI-related markets and products accounts for Nvidia's outstanding performance. The company remains among the top in the industry with relevant, innovative products and services that satisfy the soaring market demand.

Nvidia's recent earnings report reaffirms its robust position in the AI chip market. It could signal an upcoming explosive rally on AI-related products and services soon.

Additionally, Nvidia's expected launch of the Blackwell chips this year could increase its traction and earnings.

The company will need to reach its targets for the remaining two quarters of the year to sustain its current momentum and retain positive investor sentiment.

However, amid its impressive earnings report, Nvidia's share failed to react positively. NVDA trades at $125.61, down by 3.25% to hit a pre-market price of $121.53.

Increased Competition in the AI and Chip Market

Nvidia has set a record in the industry with its recent financial report and earnings.

Some experts speculate a potential rally for AI-related crypto assets amid the volatility in the broader crypto market. Notably, Bitcoin has slipped below the $60,000 region, losing more reclaims from investors' expectation of possible Federal Reserve rate cuts.

In the past seven days, these AI-based tokens, FET, Akask Network (AKT), and RENDER, surged by 26%, 10%, and 13%, respectively.

Moreover, the AI and chip market is currently under stiff competition from several companies trying to outperform Nvidia. Tech start-ups like d-Matrix, Cerebras, Groq, and others are scrambling for more attention.

They aim to attract more investment opportunities to boost their products and reposition them competitively.

Similarly, giant tech firms like Meta, Microsoft, Alphabet, OpenAI, and Amazon are still expanding their prominence. Though they depend on Nvidia's upcoming Blackwell processors, the firms also strive to create their own AI chips.

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