Cryptocurrencies have surged over the last decade and prices have increased Bitcoin And ether, the two most successful digital currencies, rose by 25,000% and 116,000%, respectively. However, investors have become softer on cryptocurrencies in recent years as they have become discouraged by their tendency to rise or fall at the drop of a hat.
The biggest advantage of cryptocurrency is its decentralized nature, which makes exchange 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.
Since there is no government authority, it can be difficult to determine the reason for price fluctuations, making it too similar to gambling. Despite their meteoric rise, Bitcoin and Ethereum have barely moved since 2021, with Bitcoin up 7% and Ethereum actually down 25%.
Therefore, it might be a good idea to look for more reliable investments, such as technology stocks. Wall Street has long rewarded innovative companies with significant and lasting profits over the long term. With high-growth industries like artificial intelligence (AI) and cloud computing on the rise, now could be the ideal time to invest in technology.
These three tech stocks appear to have more potential than any cryptocurrency.
1. Advanced micro devices
Like chip stocks modern micro devices (NASDAQ:AMD) has been in focus over the last year as increasing interest in AI led to a surge in demand for graphics processing units (GPUs). In fact, data from Grand View Research predicts that the AI market will grow at a compound annual growth rate of 37% through at least 2030, which would be worth nearly $2 trillion.
Meanwhile, AMD has restructured its business to prioritize GPU production. Last December, the company introduced its MI300X AI GPU. This new chip is intended to compete directly with the market leader Nvidiahas expanded Microsoft’s offering and has already caught the attention of some of the most prominent tech players who have signed on Microsoft And Metaplatforms as customers.
Additionally, AMD wants to take its own leadership role in the AI space by expanding into AI-based PCs. According to research firm IDC, PC shipments are expected to rise sharply this year, with AI integration serving as a key catalyst. And a Canalys report predicts that 60% of all PCs shipped in 2027 will be AI-enabled.
AMD has enormous potential in the coming years; Earnings per share (EPS) estimates support this.
AMD’s earnings could be just over $7 per share over the next two fiscal years. Multiplying this number by the company’s forward price-to-earnings (P/E) ratio of 48 gives a stock price of $336. If forecasts are correct, AMD’s share price could almost double and rise 96% by fiscal 2026.
And this means that AMD has significantly more potential than the crypto market.
2. Intel
Like AMD, Intel (NASDAQ:INTC) has significantly changed its business model in the last year.
The company has encountered more than a few hurdles in recent years. Its stock has fallen about 43% over the past three years following a decline in central processing unit (CPU) market share and the end of a more than decade-long partnership with the company Apple.
However, the crash appears to have reignited fire under Intel, and the company is taking steps to regain strength in the coming years. Last June, Intel announced a “fundamental shift” in its business, introducing an internal foundry model that it believes will help it save $10 billion by 2025.
Additionally, Intel is getting into AI. In December 2023, the company unveiled a range of AI chips, including Gaudi3, a GPU designed to challenge similar offerings from Nvidia. Intel also introduced new Core Ultra processors and Xeon server chips that feature neural processing units to run AI programs more efficiently.
Intel’s earnings could reach nearly $3 per share over the next two fiscal years. Multiplying this value by the company’s forward P/E ratio of 28 gives a stock price of $85.
Looking at the current situation, these forecasts could see Intel shares rise 118% by fiscal year 2026. Therefore, Intel is currently an absolute buy and one with more potential than any other cryptocurrency.
3. Amazon
Amazon‘S (NASDAQ:AMZN) The business has exploded over the last decade, becoming a leader in the e-commerce and cloud markets. Annual sales and operating income have increased by 546% and 20,000%, respectively, since 2014. The tech giant has become a household name worldwide and will likely continue to thrive in the long term.
In addition, 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 control the generative AI market. In 2023, AWS responded to increased demand for AI services by introducing a variety of new tools that could drive significant earnings growth in the coming years.
Amazon’s earnings are expected to reach nearly $7 per share over the next two fiscal years. If you multiply that number by the retail giant’s forward P/E ratio of 44, you get a stock price of $308, which represents a 66% share price gain through fiscal 2026.
Amazon has a bright future and you shouldn’t 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 Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in 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 calls above $57.50 on Intel, long January 2025 calls above $45 on Intel, long January 2026 calls above $395 on Microsoft, short January 2026 $405 calls on Microsoft and May 2024 short $47 calls on Intel. The Motley Fool has a disclosure policy.
3 Tech Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Fool