When Nvidia Soars, AI Tokens Just Stumble: A Comedy of Errors!

Ah, Nvidia! The illustrious titan of artificial intelligence and semiconductors, has graced us with its Q1 2026 fiscal earnings report, concluding on the fateful day of April 27, 2025. What a spectacle!

In the wake of this grand announcement, Nvidia’s stock (NVDA) performed a delightful pirouette, leaping 4.8% in post-market trading. Meanwhile, the AI tokens, bless their little hearts, managed a modest boost of 0.6%. A round of applause, please! 👏

Nvidia Q1 Earnings: Revenue Soars 69%, Income Increases 26%

On the illustrious day of May 28, 2025, the earnings report revealed that Nvidia achieved a staggering quarterly revenue of $44.1 billion. Yes, you heard it right—a 69% yearly increase and a 12% rise over the previous quarter. Who knew numbers could dance so well?

Furthermore, net income grew by a delightful 26% over the year, reaching a princely sum of $18.7 billion. The Data Center segment, the true hero of this tale, generated a whopping $39.1 billion in revenue. Up 10% from the prior quarter and a jaw-dropping 73% year-over-year! Talk about a growth spurt! 🎉

Now, let’s not forget the non-GAAP gross margin of 61% for the first quarter of fiscal 2026. But wait! It could have been 71.3% if not for a pesky $4.5 billion charge related to export licensing restrictions on its H20 products tied to China. Ah, the joys of international trade! This little hiccup also reduced non-GAAP earnings per share from a potential $0.96 to a mere $0.81. Such drama!

Despite these theatrics, Nvidia’s CEO, the ever-charismatic Jensen Huang, proclaimed that the worldwide demand for the company’s AI infrastructure remains as high as a kite on a windy day.

“AI inference token generation has surged tenfold in just one year! As AI agents become the new rock stars, the demand for AI computing will skyrocket. Countries are waking up to the fact that AI is as essential as electricity and the internet. And guess who’s at the center of this grand transformation? That’s right, Nvidia!” he declared, probably while wearing sunglasses indoors. 😎

The report had a positive effect on Nvidia’s stock performance. According to the oracle known as Yahoo Finance, the stock closed at $134.8, down 0.51%. But in after-hours trading, it shot up to $141.3, gaining 4.8%. A rollercoaster ride, indeed!

The positive results sent ripples through the AI-related tokens. However, the gains were more like gentle waves compared to the tidal wave of excitement around Nvidia’s Q4 earnings report. BeInCrypto reported that several tokens saw double-digit surges, but alas, the AI token sector only managed a modest 0.6% increase in market capitalization over the past 24 hours. Seven of the top ten AI tokens recorded small gains. A collective sigh of relief, perhaps?

NEAR Protocol (NEAR) and Artificial Superintelligence Alliance (FET) both rose by over 5%. Meanwhile, Grass (GRASS) experienced the sharpest drop of 5.7%. Poor Grass, always the underdog! 🌱

Despite the underwhelming performance, the AI token market’s restrained reaction isn’t too surprising, given the decline that followed Nvidia’s GPU Technology Conference (GTC). BeInCrypto highlighted that the sector declined 2.8% after the CEO’s keynote. Ah, the sweet taste of irony!

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2025-05-29 10:13