Coinbase Rallies as Bitcoin Hits ATH, Nvidia Tumbles After Lawsuit
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Coinbase Rallies as Bitcoin Hits ATH, Nvidia Tumbles After Lawsuit

Coinbase soared as Bitcoin set a new all-time high, while Nvidia tumbled after facing a lawsuit over its AI models allegedly using copyrighted training data.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

The divergent fortunes of two tech titans were on display in premarket trading today as cryptocurrency exchange Coinbase Global Inc. (NASDAQ: COIN) soared amid a record-setting Bitcoin (BTC) rally. At the same time, chip maker Nvidia Corp. (NASDAQ: NVDA) shares tumbled on the fallout from an AI-related lawsuit.

Coinbase Rallies as Bitcoin Hits ATH

Coinbase Global Inc. shares surged on Friday, with the cryptocurrency exchange platform’s stock closing at $256.62, up $14 or 5.77% amid an elevated trading volume of 21.9 million shares. The rally, which saw Coinbase’s price hit $272.91 in premarket trading today for a 6.35% gain, extended the stock’s upward trajectory over the past 52 weeks, during which it has ranged from $46.43 to $270.55.

Coinbase’s $62.2 billion market cap reflects its status as the preeminent U.S. crypto trading venue. While analysts cited potential near-term headwinds, the digital assets bull market bolsters the company’s strong performance. Recently, Goldman Sachs upgraded the stock with a $292 price target.

Nvidia Tumbles After Lawsuit

Nvidia Corp. shares fell sharply last Friday, tumbling $51.41 or 5.55% to close at $875.28 on the massive volume of 114.2 million shares, more than double the average trading volume. The chip maker’s retreat, which saw the stock briefly dip below $867 in premarket trading, came amid a broader pullback in technology shares and provided a wake-up call for the AI-driven market rally propelling Nvidia to record highs.

Despite the recent pullback, Nvidia remains one of the world’s most highly valued companies, following its 52-week range of $222.97 to $974. While Nvidia’s leadership in artificial intelligence solutions has fueled optimism, Friday’s downdraft signals investors may have gotten ahead of the AI market’s near-term prospects. A recent group of writers also started a class-action lawsuit over using copyright material to train Nvidia’s generative models.

Do you see Bitcoin continuing its rally into 2024? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.