AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
- Tokens NEAR, ICP, RENDER and TAO rose briefly following reports of Wall Street banks raising price targets on NVDA.
- AI token investors potentially leveraged Nvidia's positive earnings as a sell-the-news event
- AI tokens could surge further if NVDA rises to Wall Street banks' price targets.
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's (NVDA) earnings report. While a correction followed, these tokens could rally if NVDA meets price target expectations.
AI tokens could rally as investors lock in on NVDA
NEAR, ICP, RENDER, and TAO all saw slight gains today as the AI sector briefly left the red zone. The slight rise may be attributed to fresh optimism shown by investors toward the Nvidia earnings report.
Before the American session opened, NVDA surged by 6% but has since seen a correction, trading at a 5% decline on the day. A similar pattern is visible in the AI tokens mentioned above, which saw gains of nearly 5% across the board in the early hours of the American session but have corrected since then.
Nvidia released its Q2 earnings on Wednesday, outperforming expectations with adjusted earnings per share (EPS) coming at $0.68 and revenues of $30 billion.
Although AI tokens rallied last week in anticipation of the earnings report, they began experiencing declines in the past two days. This suggests investors leveraged the positive report as a sell-the-news event.
The outlook is potentially more strongly positive for AI tokens, as recent reports of Wall Street banks raising price targets on NVDA could cause positive sentiment toward the Al/Crypto category in the coming weeks. The strong earnings report, plus Nvidia announcing a $50 billion stock buyback, may have prompted these banks to raise their targets.
Morgan Stanley raised its target from $144 to $150, Bernstein from $130 to $155, Wells Fargo from $155 to $165 and JPMorgan from $115 to $155.
BREAKING: Wall Street banks raise price targets on Nvidia, $NVDA, across the board after earnings beat despite the stock falling.
— The Kobeissi Letter (@KobeissiLetter) August 29, 2024
1. Morgan Stanley Raises Target to $150 from $144
2. Bernstein Raises Target to $155 from $130
3. Wells Fargo Raises Target to $165 from $155
4.…
Consequently, if the price of NVDA rises, according to their targets, it could trigger a rally in the AI token category as they often mirror NVDA price movement.
NEAR and ICP continue to hold their gains, while the rest of the top AI tokens have begun to decline.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
