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3 Tech Stocks With More Potential Than Any Cryptocurrency
Cryptocurrencies have exploded over the past decade, prices Bitcoin And Ethereum, the two best-performing digital currencies, climbing 25,000% and 116,000% respectively. However, investors have cooled toward cryptocurrencies in recent years, discouraged by their trend up or down in the blink of an eye.
The biggest advantage of cryptocurrency is its decentralized nature, which makes trading and trading between countries much easier than traditional currencies. However, this is also the reason why it has become one of the most volatile investments.
In the absence of government authority, it can be difficult to identify the reason for the price fluctuation, making it too close to gambling. So, despite their meteoric rises, Bitcoin and Ethereum haven’t moved much since 2021 , with Bitcoin up 7% and Ethereum down 25%.
Therefore, it might be wise to look for more reliable investments, such as technology stocks. Wall Street has long rewarded innovative companies with significant and consistent gains over the long term. With the rise of high-growth sectors like artificial intelligence (AI) and cloud computing, now could be a great time to invest in technology.
These three tech stocks appear to have more potential than any cryptocurrency.
1. Advanced micro-devices
Chip stocks like Advanced microsystems (NASDAQ:AMD) has taken center stage over the past year as increased interest in AI has led to a increasing demand for graphics processing units (GPUs). In fact, data from Grand View Research projects that the AI market will grow at a compound annual growth rate of 37% through at least 2030, which would allow it to reach nearly $2 trillion. .
Meanwhile, AMD has restructured its business to prioritize GPU production. Last December, the company unveiled its MI300X AI GPU. This new chip is designed to directly compete with the market leader Nvidiaand has already attracted the attention of some of the most important players in technology, signing Microsoft And Metaplatforms as customers.
Additionally, AMD wants to lead its own space within AI by expanding into AI-powered PCs. PC shipments are expected to see a big increase this year, with AI integration serving as a key enabler, according to research firm IDC. And a Canalys report predicts that 60% of all PCs shipped in 2027 will be AI-enabled.
AMD has huge potential in the coming years; Earnings per share (EPS) estimates bear this out.
Chart AMD EPS Estimates for the Next 2 Fiscal Years
AMD’s earnings could reach just over $7 per share over the next two fiscal years. By multiplying this figure by the company’s turnover forward price/earnings ratio (P/E) of 48 gives a stock price of $336. If the projections are correct, AMD’s stock price could nearly double by fiscal 2026, rising 96%.
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And with that, AMD has a lot more potential than the crypto market.
2.Intel
Like AMD, Intel (NASDAQ: INTC) has made significant changes to its business model over the past year.
The company has faced many obstacles in recent years. Its stock is down about 43% over the past three years after seeing a decline in central processing unit (CPU) market share and ending a decade-plus partnership with Apple.
However, the fall from grace has seemingly lit a fire under Intel again, and the company has taken steps to come back strong in the years to come. Last June, Intel announced a “fundamental change” in its business, adopting an in-house foundry model that it says will save it $10 billion by 2025.
Additionally, Intel is getting into AI. In December 2023, the company launched a line of AI chips, including Gaudi3, a GPU designed to compete with similar offerings from Nvidia. Intel also introduced new Core Ultra processors and Xeon server chips, which include neural processing units to run AI programs more efficiently.
Graph of INTC EPS estimates for the next 2 financial years
Intel’s earnings could reach nearly $3 per share over the next two fiscal years. Multiplying this number by the company’s forward P/E of 28 gives you a stock price of $85.
Given its current position, these projections could see Intel shares soar 118% by fiscal 2026. As a result, Intel is a screaming buy right now and with more potential than any crypto -cash.
3. Amazon
Amazon(NASDAQ: AMZN)’s business has exploded over the past decade as a leader in the e-commerce and cloud market, with annual revenue and operating profit up 546% and 20,000% since 2014. The tech giant has become a household name around the world and will likely continue to thrive in the long term.
Additionally, as the operator of the world’s largest cloud service, Amazon Web Services (AWS), the company has the potential to leverage its massive cloud data centers and drive the generative AI market. In 2023, AWS responded to the growing demand for AI services by introducing a variety of new tools, which could lead to a significant increase in its profits in the coming years.
Chart of AMZN EPS estimates for the next 2 fiscal years
Amazon’s profit is expected to reach nearly $7 per share over the next two fiscal years. When you multiply that number by the retail giant’s forward P/E of 44, you get a share price of $308, which would see its shares rise 66% by fiscal 2026 .
Amazon has a bright future and you won’t want to miss out on its potential.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Daniel Cook has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Advanced Micro Devices, Amazon, Apple, Bitcoin, Ethereum, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short 405 calls $ in January 2026 on Microsoft and short $47 calls in May 2024. Intel. The Motley Fool has a disclosure policy.
3 Tech Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Fool