Original author: Weird thinking
After the U.S. stock market closed on Wednesday, Nvidia released its highly anticipated Q2 financial report for fiscal year 2025.
The report shows that the company achieved revenue of $30 billion in the second quarter, higher than the market expectation of $28.86 billion, a year-on-year increase of 122%; net profit was $16.59 billion, also exceeding the market expectation of $14.64 billion, a year-on-year increase of 168%. Although the performance exceeded expectations again, under the high expectations of the market for Nvidia, the "exceeding expectations" this time seemed slightly insufficient, causing the stock price to fall 8% after the market.
Although there is some uncertainty in the short-term outlook, from the perspective of the full-year performance, Nvidia's stock price has risen by about 160% since the beginning of the year, firmly maintaining its position as a market leader. Whether relying on its absolute leading position in the field of artificial intelligence or its continued expansion in the data center and high-performance computing markets, Nvidia's fundamentals remain solid. It can be said that hyping AI is a general consensus under the wave of generative AI, and hyping Nvidia is a "consensus within the consensus." As long as the AI gold rush continues, Nvidia, as a "shovel seller," can make money without doing anything.
Nvidia's success has also led to the prosperity of crypto AI projects this year. These projects with smaller market capitalizations are often seen as "signal amplifiers" for Nvidia's market, and the market generally believes that they can bring higher returns to investors. But are these crypto AI projects really performing as expected? BlockBeats made a detailed comparison of the year-to-date gains of the top ten crypto AI projects by market capitalization and Nvidia, trying to clarify the real situation. (Many small-cap crypto AI concept projects are not compared. Given that Nvidia is the world's second largest technology company, it is more appropriate to use large-cap projects for comparison.)
It can be found that although the highest increase of 5 encrypted AI projects this year has exceeded Nvidia, it seems to verify their role as "signal amplifiers" when the market is most hyped. However, when we look at the performance from the beginning of the year to date (YTD) over a longer period of time, we find that only AIOZ Network has increased more than Nvidia, and most of the other projects have been unable to catch up with Nvidia after experiencing a huge retracement.
Internet Computer even fell by 41.7%, which is well-deserved. This also shows that not all projects that piggyback on the AI narrative can get lasting help from it. No matter how awesome a project is, if it lacks continuous operation and development, it will be difficult to gain the favor of investors in the long run. In the context of the project party issuing coins and starting to sell them, "speculating on new but not old" has almost become an iron rule in the crypto market.
In contrast, Nvidia's stock price has always been relatively stable and has rarely experienced any significant retracements. In addition to the fact that no one has shaken its position as the industry leader, it also shows that there has always been strong fundamental support behind it, which is in sharp contrast to the short-term rise driven by many encrypted AI projects based on narrative and market popularity.
This comparison once again reveals the chronic disease of cryptocurrency projects: when the craze for a certain narrative gradually fades and the market refocuses on the actual value and fundamentals of the project, the actual performance of many crypto projects is often stretched and unsatisfactory. The growth of crypto AI projects is highly dependent on market sentiment, but only continuous technological innovation and strong team execution can support the long-term survival of the project.
Many projects that rose dramatically during the peak of hype actually had no special technological innovation or product advantages, and even no real users, because they were not intended for people to use them when they were first created. When market sentiment returns to rationality, the "naked swimming" status of these projects will be exposed, and speculators will quickly abandon them and look for the next narrative target for hype.
Therefore, for crypto investors, when choosing a project, they should not only look at short-term gains and hot spots, but also dig deep into the project's technology, team, ecosystem construction and community participation. Nvidia's steady performance provides investors with a good benchmark - it's right to chase emerging opportunities, but don't ignore those targets with solid fundamentals and long-term growth potential. A truly good project should stand the test of time.
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