Will AI Coins drop because of bad news for chipmakers like Nvidia and ASML?
Last Updated on 19 July 2024 by CryptoTips.eu
Tech stocks, and especially large chip makers, are having a very bad week. Two of the best known companies, Nvidia and ASML, have actually already had a very bad month of July.
This also has consequences for the crypto world, where AI and data coins such as Render and FET (which stands for Artificial Superintelligence Alliance, or the coins SingularityNet, Ocean Protocol and Fetch.AI together) had to get through some difficult moments. Is this the start of an AI correction?
ASML
AI stocks and AI coins were some of the biggest winners during the first quarter of the year, but have increasingly struggled lately. There are several reasons for this. Let’s go over them briefly.
ASML, the large Dutch chip company, is not having a great time as of late. Just like Nvidia, ASML had a very good period at the beginning of the year, but it is now seeing increased losses on the stock exchange due to a changing outlook for the third quarter.
Meanwhile Nvidia, the world’s largest chipmaker and normally the darling of American investors, has already lost more than 12% in the past week.
Render
Both stocks were also hit by the threat of an increasing export ban on their products to the Chinese market (Nvidia is no longer allowed to sell its AI chips to China, the EU is considering imposing a similar ban on European chip manufacturers) and during the Republican convention this week, Donald Trump refused to guarantee Taiwan’s defense in the event of a Chinese attack in the future.
Trump believes that Taiwan, like some NATO members, should pay money to the United States for their protection.
AI cryptocurrencies are actually doing well in comparison. Although they have had some difficult moments in recent days, they continued to move higher overall for the past week as Bitcoin’s rebound lifted the entire market.
However, the high for many of them was in March of this year (Render was trading above $12 at the time), and those values seem long gone. Watch out for volatility in both AI coins and stocks.
