Artificial intelligence (AI)-related cryptocurrencies have been through a turbulent period recently, weighed down by broader market volatility. A plunge in Nvidia shares added to the uncertainty, triggering a massive sell-off across both the stock and cryptocurrency markets. However, renewed optimism surrounding Nvidia’s share price has reignited hopes of a potential recovery in AI tokens.
Analysts remain bullish on Nvidia stock, and investors are keeping a close eye on AI coins amid the recent downturn in the sector. Last week, financial markets faced intense selling pressure following reports that the US Department of Justice had issued a subpoena to Nvidia. The news led to a 10% drop in NVDA shares, which also impacted AI tokens.
On Thursday, Nvidia refuted the DOJ’s subpoena allegations, boosting market confidence. A company spokesperson confirmed that Nvidia would cooperate with regulators if necessary, further reassuring investors. Bank of America reiterated its bullish outlook on Nvidia, maintaining a “buy” rating with a $165 price target. Analysts have highlighted Nvidia’s strong growth potential, suggesting that the recent drop in the stock presents a buying opportunity, driven by high demand for its AI chips.
This bullish sentiment around Nvidia has sparked talk of a potential recovery in AI-related cryptocurrencies. While the sector remains bearish amid broader market conditions, recent developments could boost market sentiment. AI-related crypto tokens typically track the performance of leading AI companies. While major AI coins such as NEAR, ICP, and FET have been trading lower over the past 24 hours, recent gains suggest a potential recovery. NEAR is up 0.68%, FET is up 1.24%, and ICP is up 0.98%, while Nvidia shares are up 1.02%, suggesting a broader recovery potential for AI tokens.
