Tech
3 tech stocks with more potential than any cryptocurrency
Earnings per share estimates show that these companies could generate stock growth of between 65% and 120% over the next two years.
Cryptocurrencies have risen over the past decade, with prices of Bitcoin AND Ethereum, the two most successful digital currencies, with an increase of 25,000% and 116,000% respectively. However, investors have cooled on cryptocurrencies in recent years, put off by their tendency to rise or fall in the blink of an eye.
The biggest advantage of cryptocurrency is its decentralized nature, which makes it much easier to exchange and trade between countries than traditional currencies. However, this is also why it has become one of the most volatile investments.
Without a government authority, it can be difficult to pinpoint the reason for the price fluctuation, making it too similar 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%.
As a result, it might be a good idea to look for more reliable investments, such as technology stocks. Wall Street has a long history of rewarding innovative companies with significant and consistent gains over the long term. With high-growth sectors such as 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 microdevices
Chip stocks like Advanced microdevices (AMD 2.28%) has been in the spotlight over the past year as growing interest in artificial intelligence has led to peak demand for graphics processing units (GPUs). In fact, data from Grand View Research predicts that the AI market will expand at a compound annual growth rate of 37% through at least 2030, which would see it reach nearly $2 trillion.
Meanwhile, AMD has been restructuring its business to prioritize GPU manufacturing. Last December, the company introduced its MI300X AI GPU. This new chip is designed to compete directly with the market leader Nvidiaand it has already attracted the attention of some of the biggest players in tech, who have signed on Microsoft AND Meta platforms as customers.
Additionally, AMD wants to occupy its space in AI by expanding into AI-powered PCs. According to research firm IDC, PC shipments are expected to see a notable increase this year, with the integration of artificial intelligence serving as a key catalyst. And a report from Canalys 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 support this.
Data from YCharts
AMD earnings could reach just over $7 per share over the next two fiscal years. Multiplying this figure by that of the company forward price/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 cryptocurrency market.
2. Intel
Like AMD, Intel (INTC 0.41%) has made significant changes to its business model over the past year.
The company has encountered more than a few obstacles in recent years. Its shares have fallen about 43% over the past three years after seeing a decline in market share in central processing units (CPUs) and ending a more than decade-long partnership with Apple.
However, the fall from grace has seemingly reignited the fire under Intel, and it is making moves to come back strong in the coming years. Last June, Intel announced a “fundamental change” to its business, adopting an in-house foundry model that it says will help it save $10 billion by 2025.
Additionally, Intel is moving towards artificial intelligence. In December 2023, the company launched a range of AI chips, including Gaudi3, a GPU designed to challenge similar offerings from Nvidia. Intel also unveiled new Core Ultra processors and Xeon server chips, which include neural processing units to run artificial intelligence programs more efficiently.
Data from YCharts
Intel’s earnings could reach nearly $3 per share over the next two fiscal years. Multiplying this figure by the company’s forward P/E of 28 gives a stock price of $85.
Considering its current position, these projections could see Intel shares rise 118% by fiscal 2026. As a result, Intel is a smash buy right now and with more potential than any cryptocurrency.
3. Amazon
Amazon‘S (AMZN 0.68%) has exploded over the last decade to become a leader in the e-commerce and cloud markets, with annual revenue and operating profit growing 546% and 20,000% respectively since 2014. The technology giant has become a household name in around the world and will likely continue to prosper 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 lead the market for generative artificial intelligence. In 2023, AWS responded to the growing demand for AI services by introducing a number of new tools, which could lead to significant earnings growth in the coming years.
Data from YCharts
Amazon’s earnings are expected to reach nearly $7 per share over the next two fiscal years. Multiplying this figure by the retail giant’s forward P/E of 44 gives a share price of $308, which would see its shares rise 66% by fiscal 2026.
Amazon has a bright future, and you don’t want to miss out on its potential.
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 spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the securities mentioned. The Motley Fool has 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 January 2026 $405 Calls on Microsoft and Calls short May 2024 $47 on Intel. The Motley Fool has a disclosure policy.