NEAR, VIRTUAL and KAITO lead AI tokens ahead of Nvidia Q1 earnings report

• Nvidia is set to release its Q1 earnings report on Wednesday, which has historically impacted the AI cryptocurrency sector.
• Market participants have priced in an 8% expected volatility in Nvidia stock options, equivalent to $256 billion ahead of the report's release.
• AI tokens NEAR, VIRTUAL and KAITO are up 2.5%, 10.3% and 10.4%, respectively.

The Artificial Intelligence (AI) cryptocurrency sector is up 3% on Tuesday as market participants anticipate an 8% volatility swing in computing firm Nvidia's (NVDA) market cap ahead of its Q1 earnings report.

NEAR, VIRTUAL and KAITO lead AI tokens ahead of Nvidia's Q1 earnings

AI computing firm Nvidia is set to announce its Q1 earnings report on Wednesday after the American market closes.

Nvidia's quarterly earnings report is often regarded as one of the most highly anticipated releases of the year due to its significant impact on the broader AI market.

The company's stock has experienced heavy volatility in 2025 amid trade tensions between the US and China, particularly after the Trump administration banned shipments of Nvidia's H20 chips to China. Nvidia's CEO, Jensen Huang, stated that the company had lost $15 billion in sales due to the ban during an interview with technology analyst Ben Thompson earlier in the month.

The company's upcoming earnings report, scheduled for Wednesday, has attracted market participants, who have largely priced in strong volatility. Based on options pricing, traders are betting on a +/-8% swing in Nvidia's market cap, totaling $250 billion, according to The Kobeissi Letters.

The anticipation surrounding the report has stirred gains in the company's stock NVDA, which is up over 3% in the early American session.

The rally has also slightly trickled down into the AI cryptocurrency sector, where NEAR, VIRTUAL and KAITO are up by 2.5%, 10.3% and 10.4% in the past 24 hours, respectively. However, other large-cap AI tokens, such as Bittensor (TAO), Internet Computer (ICP), RENDER and Artificial Superintelligence Alliance (FET), are fairly muted on the day.

Top AI Cryptos. Source: CoinGecko

AI cryptocurrencies have historically been influenced by Nvidia's stock price or quarterly report. Most tokens in the sector often experience sharp price increases ahead of Nvidia's earnings report, but quickly see a drop off immediately after the report is released, reflecting a 'sell the news' effect where strong expectations are already priced in.