AI tokens rise despite Nvidia’s $430 billion market cap loss

Nvidia stock has seen a sharp decline over the past three consecutive trading days, resulting in a loss of more than $430 billion in market capitalization and a 13% drop from its peak.

Despite this drop, popular AI crypto tokens have shown significant gains in the past 24 hours.

AI tiles are gathered as NVDA Plunges

Nvidia is closely followed by cryptocurrency traders as a key indicator for the AI ​​cryptocurrency market. While there have been instances of parallel movement, such as during Nvidia’s Q4 2023 earnings report, this correlation did not manifest itself at the latest assessment.

Over the past five trading days, Nvidia’s stock price is down 11.16%, currently trading at $118.11, according to data from Google Finance.

Monday marked the chipmaker’s second steepest drop this year, down 6.7%. Despite this recent decline, Nvidia’s value has nearly tripled over the past year. Last week, it surpassed Apple and Microsoft to become the most valuable American company. However, Ycharts data shows that Nvidia’s market capitalization has declined by $430 billion, from $3.3 trillion to $2.9 trillion, relinquishing its top spot.

Although artificial intelligence computing leader Nvidia has seen a notable decline in its stock prices, AI crypto tokens have shown steady gains over the past few hours. The Artificial Intelligence (AI) market capitalization is currently just over $29 billion, reflecting a change of 8.7% in the last 24 hours.

Major players such as Near Protocol, Fetch.ai, Internet Computer, Render and The Graph have recorded significant gains ranging from 3% to 25%.

Over the same period, the biggest gainers were Nosana and Commune AI, with gains of 37% and 35%, respectively, despite their mid- and low-end market caps.

There is no negative news

While the drop in Nvidia stock didn’t coincide with any significant negative news or catalyst, concerns arose that Chairman Jensen Huang and other executives sold a substantial amount of stock recently.

Since June 13, Huang has liquidated Nvidia shares worth $79.38 million, as reported in a June 21 filing with the SEC, which drew attention.

Global Market Insider highlighted in a recent post that Nvidia executives are selling shares at their fastest pace ever. Additionally, Barchart reported that Nvidia executives have collectively sold a total of $796 million worth of stock over the course of the year.

Nvidia $NVDA Insiders have now cashed in over $796 million this year 🚨 pic.twitter.com/pji98W9UXy

— Barchart (@Barchart) June 24, 2024

However, analysts such as Oguz O responded that “most of them are pre-planned and do not bother me”, suggesting that the sales were anticipated and not alarming.

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