NVIDIA’s record-breaking Q4: Is an AI explosion on the horizon?

Financial results that defy gravity: How far will the AI giant go?

It’s a habit that investors never seem to tire of: Nvidia has once again crushed consensus expectations. Driven by insatiable demand for its artificial intelligence chips, the company unveiled figures that confirm its hegemonic position. Quarterly revenue soared, validating the thesis of an AI super-cycle that is far from running out of steam. For traders, this is a strong signal: liquidity is there, and risk appetite remains massive.

However, the market reaction is on hold. While the stock soared to briefly touch $200 in after-hours trading, selling pressure quickly regained control. This rejection at a key psychological threshold indicates that whales and institutional players took advantage of this liquidity to secure their gains. This isn’t necessarily a bearish sign long-term, but it marks a necessary breather after such a vertical rally.

This type of movement is classic in market finance: expectations were so high that even massive outperformance wasn’t enough to maintain the price above $200 immediately. The market had already “priced in” perfection. Once the news dropped, the adage “Buy the rumor, sell the news” proved true with surgical precision, triggering a swift retracement toward healthier support zones.

The brief passage above $200 acted like a liquidity magnet. For many technical traders, this round number represented an automatic profit-taking zone (Take Profit). Indeed, this zone is represented by a daily order block that serves as strong resistance and a defense zone for smart money.

As long as demand for Blackwell chips and data center infrastructure remains exponential, Nvidia’s fundamentals justify high valuations. The question now is whether the market needs a phase of sideways consolidation before attempting a new breakthrough.

The domino effect on AI cryptos: Opportunity or trap?

The correlation between Nvidia stock and artificial intelligence sector tokens (AI Coins) has become undeniable. Projects like Fetch.ai (FET), Render (RNDR) or Bittensor (TAO) often react in sympathy with the semiconductor giant’s movements. When Nvidia explodes, these altcoins tend to outperform Bitcoin; when Nvidia corrects, they often suffer more severe profit-taking due to their lower market capitalization.

Following the earnings announcement and the $200 rejection, we’re observing palpable nervousness in the crypto market. If Nvidia fails to maintain its bullish momentum in the coming days, this could dampen the momentum of AI tokens that were benefiting from the technological narrative. Crypto traders must therefore closely monitor Wall Street’s opening: a solid weekly close for Nvidia could give the green light for a new leg up in AI cryptos.

Conversely, if the correction deepens, we could see these tokens revisit lower support zones. This is where risk management becomes crucial. Don’t give in to panic, but stay lucid: Nvidia’s volatility is a leading indicator for Tech sector health and, by extension, for risk assets like cryptocurrencies. The market is now waiting to see if $200 will be retested quickly or if an accumulation phase is necessary.

Ultimately, Nvidia remains the undisputed barometer of the current technological revolution. Whether the price is at $190 or $200, the underlying trajectory remains growth-oriented. For crypto traders, keep an eye on the correlation: if Nvidia resumes its assault on its record high, AI tokens could well be next to print massive green candles.

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