Nvidia’s AI-Fueled Earnings Surge Sparks Stock Rally—Crypto Plays Catch-Up
Another quarter, another proof that betting on AI prints money—at least for Nvidia. The chipmaker’s Q1 earnings smashed expectations, sending its stock soaring while crypto’s AI tokens managed a polite golf clap of gains.
Wall Street’s favorite hammer sees every problem as an AI nail, and shareholders are cashing in. Meanwhile, blockchain’s AI projects? Still waiting for their ‘ChatGPT moment’—unless you count the usual hype cycles and vaporware.
Funny how the ‘decentralized future’ still dances to the tune of centralized tech giants. Maybe next quarter, right?
Nvidia Q1 Earnings: Revenue Soars 69%, Income Increases 26%
The earnings report released on May 28, 2025, revealed that Nvidia achieved quarterly revenue of $44.1 billion. This represented a 69% yearly increase and a 12% rise over the prior quarter.
Furthermore, net income grew 26% over the year to $18.7 billion. Nvidia’s Data Center segment led the growth, generating $39.1 billion in revenue.
That was up 10% from the prior quarter and 73% year-over-year. The segment also made up 88% of total revenue. Nvidia reported a non-GAAP gross margin of 61% for the first quarter of fiscal 2026.
The firm noted that this WOULD have been 71.3% if not for a $4.5 billion charge related to export licensing restrictions affecting its H20 products connected to China. The charge also reduced non-GAAP earnings per share from a potential $0.96 to $0.81.
Despite this, Nvidia’s CEO, Jensen Huang, highlighted that the worldwide demand for the company’s AI infrastructure continues to be very high.
“AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation,” he said.
The report positively influenced Nvidia’s stock performance. According to Yahoo Finance, the stock closed at $134.8, down 0.51%. However, in after-hours trading, the price ROSE sharply to $141.3, gaining 4.8%.
The positive results had a Ripple effect on the AI-related tokens. Nevertheless, the gains were tempered compared to the market reaction observed around Nvidia’s Q4 earnings report. BeInCrypto reported that several tokens saw double-digit surges.
However, according to CoinGecko, the AI token sector only saw a modest 0.6% increase in market capitalization over the past 24 hours. Seven of the top ten AI tokens recorded small gains.
NEAR Protocol (NEAR) and Artificial Superintelligence Alliance (FET) both rose by over 5%. Meanwhile, Grass (GRASS) experienced the sharpest drop of 5.7%.
Despite the underwhelming performance, the AI token market’s restrained reaction isn’t too surprising, given the decline that followed Nvidia’s GPU Technology Conference (GTC). BeInCrypto highlighted that the sector declined 2.8% after the CEO’s keynote.
