AI Optimism and Macro Fears Pit Crypto Resilience Against Market Slump

The three major U.S. stock indexes fell on Nov. 18, 2025, as traditional markets struggled while cryptocurrency-related assets and stocks showed signs of resilience. The Nasdaq Composite declined 1.1%, and the Dow Jones Industrial Average slipped amid broader market weakness. However, crypto prices and related equities bucked the trend, with bitcoin rebounding above $93,000 after a sharp intraday dip and stocks tied to artificial intelligence (AI) infrastructure and digital assets seeing renewed interest according to Coindesk.

Nvidia (NVDA), a linchpin of the AI boom, is set to report earnings after market close on Wednesday, with analysts forecasting a 54% year-over-year jump in earnings per share to $1.25 and revenue of $55 billion according to CNBC. Stocks closely correlated to Nvidia's performance, such as Taiwan Semiconductor Manufacturing (TSMC) and Super Micro Computer (SMCI), have surged in 2025 amid expectations of sustained demand for AI hardware. TSMC, which has a 57% 60-day correlation with Nvidia, gained 41% year-to-date, while Bank of America upgraded its price target to $390, implying a 38% upside according to CNBC. Super Micro, with a 55% correlation, rose 15% this year after Argus upgraded it to a buy rating, citing undervaluation relative to growth prospects according to CNBC.

Meanwhile, crypto markets staged a temporary rebound, with bitcoin rising 1% and ether, solana, and XRP gaining 2.5%-4% according to Coindesk. The outperformance marked a rare divergence from traditional assets, which have outpaced crypto for months. However, analysts cautioned that the move remained short-lived, with crypto still grappling with a deeper selloff triggered by inflation fears and leveraged trading liquidations exceeding $1 billion according to Coinpedia. "For now, it remains only a multi-hour event," noted Coindesk, highlighting that crypto's weakness relative to stocks and gold persisted despite the bounce according to Coindesk.

AI infrastructure provider Amperesand secured $80 million in Series A funding led by Temasek and Walden Catalyst Ventures, signaling investor confidence in next-generation power solutions for data centers. The company's solid-state transformer technology aims to cut installation time and electrical footprint by over 80%, with plans to deploy 30 megawatts of commercial systems in 2026 according to Business Times.

This development underscores the sector's appeal amid surging demand for AI computing, even as broader markets faltered.

Retailer Home Depot (HD) weighed on the Dow after reporting a third-quarter earnings miss and slashing its full-year profit outlook. Adjusted EPS of $3.74 fell short of estimates and declined 1.4% year-over-year, with CEO Ted Decker citing weak demand, a lack of storm-related sales, and housing market pressures according to Tech Times. The stock dropped 2-3% in premarket trading, exacerbating concerns about a prolonged slowdown in home-improvement spending according to Tech Times.

Crypto-related equities also diverged from the broader slump. MicroStrategy (MSTR) surged 8.3% after a month-long decline, while Bitmine Immersion (BMNR) and Coinbase (COIN) rose 7% and 1.5%, respectively according to Coindesk. Grayscale Investments, the crypto asset manager, filed for an IPO despite a 20% revenue drop in the first nine months of 2025, citing volatile market conditions and regulatory uncertainty according to Reuters.

The mixed market environment reflects a tug-of-war between AI-driven optimism and macroeconomic headwinds. While Nvidia's results could reignite tech-sector momentum, inflation concerns and leveraged crypto positions continue to weigh on risk assets. Investors remain closely watching inflation data and central bank policy shifts, which could determine whether the current crypto rebound evolves into a sustained recovery.