NAIROBI (CoinChapter.com)— The artificial intelligence (AI) token market experienced a sharp sell-off after Nvidia Corp. (NASDAQ: NVDA) released its third-quarter fiscal 2025 earnings. Despite posting strong growth, the company’s outlook raised concerns among investors, leading to declines in both Nvidia’s stock and AI tokens.
Nvidia Reports Strong Earnings but Faces Investor Concerns
Nvidia reported $35.08 billion in revenue for the quarter, a 94% increase from the $18.12 billion recorded in the same period last year. Net income surged to $19.31 billion, more than doubling last year’s $9.24 billion.
Earnings per share reached 81 cents, exceeding Wall Street’s expectations of 75 cents on $33.71 billion in revenue.
However, Nvidia reported a decline in its gross profit margin to 75% and projected further reductions in the next quarter. This triggered investor concerns about competition and profitability in the AI sector, causing Nvidia’s stock to drop 3% in 24 hours, trading at approximately $142.
CFO Colette Kress acknowledged ongoing supply constraints for Hopper and Blackwell systems, which are expected to persist into fiscal 2026. Dilin Wu, a strategist at Pepperstone Australia, remarked, “The gap between market expectations and Nvidia’s outlook, especially on chip supply timing and capacity, appears to have disappointed investors.”
AI Tokens Follow Nvidia’s Downtrend
The decline in Nvidia’s stock coincided with a 4.3% drop in the overall AI token market cap, which now stands at $34.3 billion. Render (RENDER), Internet Computer (ICP), and NEAR Protocol (NEAR), some of the top-performing AI tokens, showed varied performances but failed to counteract the market’s overall slide.
Render (RENDER) saw a steep 9.1% decline in its price, trading at $7.38, with a 24-hour volume of $448.7 million. Internet Computer (ICP), priced at $9.03, recorded a modest 1.5% gain, while NEAR Protocol (NEAR) rose 2.5% to $5.48. NEAR had the highest trading volume among the three, with $716 million in activity over the same period.
This sharp decline contrasts with the June 20, 2024 surge, when AI tokens rallied by over 14%, pushing their market cap to $29.9 billion. That rally followed Nvidia’s rise as the world’s most valuable company, fueled by Wall Street’s enthusiasm for AI chip stocks.
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