Nvidia conference causes AI tokens to fall
Nvidia CEO unveils next-gen AI chips at GTC, including Blackwell Ultra.
At the highly anticipated GPU Technology Conference in San Jose, Nvidia CEO Jensen Huang unveiled the company’s next-generation AI chips, including the Blackwell Ultra, which is slated for a second-half 2025 release.
Despite high expectations that the event would fuel investor enthusiasm in the artificial intelligence (AI) cryptocurrency space, data indicates that the total market capitalization of AI tokens fell 2.8% following the keynote, reports BeInCrypto.
Nvidia’s presentation, which also highlighted future chip releases scheduled for 2026 and 2027, failed to spark the rally that had been seen after the company’s impressive fourth-quarter earnings report in February.
Disappointing Market Reaction
Huang, who has previously championed the breakthrough potential of “agentic AI” as a multi-trillion-dollar opportunity, noted that the past few years have witnessed fundamental shifts in AI technology.
However, while investors had hoped for similar momentum to translate into significant gains for AI crypto tokens, the market reaction was mixed. Of the top 10 AI tokens, only modest gains were observed in eight sectors, with AI Applications taking the hardest hit, dropping by 17.6%. Other segments, such as AI Agent Launchpad and AI Agents, saw declines of 9.5% and 7.7% respectively, while the AI Framework sector and Bittensor Ecosystem experienced smaller falls.
Broader Tech and Market Context
The disappointing performance of AI tokens coincided with a broader downturn in tech stocks amid mounting macroeconomic uncertainties. Nvidia’s own shares dropped 3.4% on Tuesday, contributing to a 14% year-to-date decline. Industry analysts noted that while past events—such as Nvidia’s fourth-quarter earnings—had boosted the crypto market, this year’s GTC failed to generate the same level of investor confidence.
In an environment where investors remain cautious, the subdued performance of AI tokens underscores the complex relationship between technological innovation, market sentiment, and investor expectations. As companies continue to navigate volatile conditions and shifting investor sentiment, market watchers will be closely monitoring the next phase of AI and crypto developments for signs of renewed momentum.
Recently we wrote, that Nvidia Corporation (NVDA) stock closed at $119.53 on Monday, reflecting a 1.8% decline ahead of the company's highly anticipated GPU Technology Conference (GTC).
