Cryptocurrencies surged over the past decade, with the prices of Bitcoin and Ethereum, the two most successful digital currencies, soaring 25,000% and 116,000%, respectively. Nonetheless, investors cooled on crypto currently, discouraged by its tendency to rise or fall inside the blink of an eye fixed fixed.
The most important advantage of cryptocurrency is its decentralized nature, making it far easier to exchange and trade between countries than traditional currencies. Nonetheless, this may be why it has grow to be one in every of the crucial volatile investments.
With no governing authority, it could be difficult to pinpoint the reason for price fluctuation, making it too akin to gambling. So, despite their meteoric rises, Bitcoin and Ethereum haven’t moved much since 2021, with Bitcoin up 7% and Ethereum actually down 25%.
In consequence, it is probably a superb idea to hunt more reliable investments, similar to tech stocks. Wall Street has a protracted history of rewarding modern firms with significant and consistent gains over the long term. With high-growth industries like artificial intelligence (AI) and cloud computing on the rise, now could possibly be a wonderful time to take a position in tech.
These three tech stocks appear as if they’ve more potential than any cryptocurrency.
1. Advanced Micro Devices
Chip stocks like Advanced Micro Devices (NASDAQ: AMD) took center stage over the past 12 months as increased interest in AI led to a spike in demand for graphics processing units (GPUs). The reality is, data from Grand View Research projects the AI market to expand at a compound annual growth rate of 37% until in any case 2030, which could see it hit nearly $2 trillion.
Meanwhile, AMD restructured its business to prioritize GPU production. Last December, the company unveiled its MI300X AI GPU. This recent chip is designed to compete directly with market leader Nvidia‘s offerings and has already caught the attention of just a few of tech’s most distinguished players, signing on Microsoft and Meta Platforms as clients.
Furthermore, AMD desires to guide its own space inside AI by expanding into AI-powered PCs. Based on research firm IDC, PC shipments are projected to see a major boost this 12 months, with AI integration serving as a key catalyst. And a Canalys report predicts that 60% of all PCs shipped in 2027 will likely be AI-enabled.
AMD has massive potential within the approaching years; earnings per share (EPS) estimates support this.
AMD’s earnings could hit just above $7 per share over the following two fiscal years. Multiplying this figure by the company’s forward price-to-earnings ratio (P/E) of 48 yields a stock price of $336. If projections are correct, AMD’s stock price could nearly double by fiscal 2026, rising 96%.
And with that, AMD has significantly more potential than the crypto market.
2. Intel
Like AMD, Intel (NASDAQ: INTC) made significant changes to its business model over the past 12 months.
The company hit greater than simply just a few roadblocks currently. Its stock is down about 43% over the past three years after seeing decreased market share in central processing units (CPUs) and ending a greater than decade-long partnership with Apple.
Nonetheless, the autumn from grace has seemingly lit a hearth under Intel again, and it has been making moves to return back strong within the approaching years. Last June, Intel announced a “fundamental shift” to its business, adopting an internal foundry model that it believes will help it save $10 billion by 2025.
Moreover, Intel is moving into AI. In December 2023, the company debuted an expansion of AI chips, including Gaudi3, a GPU designed to challenge similar offerings from Nvidia. Intel also showed off recent Core Ultra processors and Xeon server chips, which include neural processing units for running AI programs more efficiently.
Intel’s earnings could reach nearly $3 per share over the following two fiscal years. When multiplying that figure by the company’s forward P/E of 28, you get a stock price of $85.
its current position, these projections could see Intel’s stock soar 118% by fiscal 2026. In consequence, Intel is a screaming buy immediately and one with more potential than any cryptocurrency.
3. Amazon
Amazon‘s (NASDAQ: AMZN) business exploded over the past decade since it has grow to be a pacesetter in e-commerce and the cloud market, with its annual revenue and operating income up 546% and 20,000%, respectively, since 2014. The tech giant has grow to be a household name worldwide and may likely proceed to flourish over the long term.
Furthermore, since the operator of the world’s biggest cloud service, Amazon Web Services (AWS), the company has the potential to leverage its massive cloud data centers and steer the generative AI market. In 2023, AWS responded to increased demand for AI services by introducing quite numerous recent tools, which can result in a considerable boost to earnings within the approaching years.
Amazon’s earnings are expected to realize nearly $7 per share over the following two fiscal years. Whilst you multiply that figure by the retail giant’s forward P/E of 44, you get a stock price of $308, which could see its shares increase by 66% by fiscal 2026.
Amazon has a vivid future, and you may not want to miss out on its potential.
Must you invest $1,000 in Advanced Micro Devices immediately?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Idiot’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Advanced Micro Devices, Amazon, Apple, Bitcoin, Ethereum, Meta Platforms, Microsoft, and Nvidia. The Motley Idiot recommends Intel and recommends the subsequent options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Idiot has a disclosure policy.
3 Tech Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Idiot