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AI-focused cryptocurrencies took a sharp hit following Nvidia’s highly anticipated GTC conference, where CEO Jensen Huang unveiled the company’s latest AI chips.
Nvidia’s stock dropped 3.4% on Tuesday after the keynote, and the decline seemed to ripple across AI-related digital assets. Tokens like Bittensor (TAO), Render (RENDER), Near Protocol (NEAR), and Internet Computer (ICP) all posted significant losses, with some down over 6% in the past 24 hours.
The sell-off came after Huang introduced Blackwell Ultra, a new family of AI chips set to launch in the second half of 2025. He also announced Nvidia’s next-generation graphics processor, Vera Rubin, expected to arrive in 2026, and hinted at future models named after physicist Richard Feynman.
While the company touted its advancements in AI computing, investors reacted cautiously.
“These last two to three years have seen a fundamental breakthrough in AI,” Huang said. “We call it agentic AI.”
Despite the optimism, Nvidia’s stock slumped, dragging down other tech names like Palantir, which fell nearly 4%.
The decline in AI crypto tokens suggests concerns over Nvidia’s aggressive annual chip release cycle. While the company is leading AI chip development, investors may be worried about whether these advancements will generate enough demand in the short term.
Another factor weighing on sentiment is China’s DeepSeek R1 model, which some analysts believe could challenge Nvidia’s dominance in AI computing. Huang downplayed those fears, arguing that DeepSeek’s reliance on advanced reasoning models would only increase demand for Nvidia’s products.
Meanwhile, broader market jitters added to the sell-off. The Dow Jones Industrial Average lost 260 points, or 0.62%, closing at 41,581.31. The S&P 500 fell 1.07%, nearing correction territory, while the Nasdaq Composite dropped 1.71% to settle at 17,504.12.