Cryptocurrency attracts many users, with its non-reliance on any central authority such as a government or bank. However, that also increases its volatility and leaves many cryptocurrencies open to potential manipulation.
This volatility can be seen in the recent performance of the most widely used crypto, Bitcoin. The currency has seen a high of $41,500 and a low of $15,800 over the last 12 months alone and remains down 25% for the year.
Alternatively, tech stock growth primarily relies on a company’s financial health and ability to expand earnings over several years. As a result, many tech companies offer consistent and reliable gains over the long term, with the industry’s focus on innovation offering more room for growth than the crypto market.
Here are three tech stocks with more potential than any cryptocurrency.
1. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) stock has climbed over 800% in the past five years and more than 3,700% in the past decade. As a leading chipmaker, the company has carved out a lucrative position in multiple areas of tech. AMD chips can be found in a wide variety of industries, from consumer products like Sony‘s PlayStation 5 game console to data centers hosting cloud platforms like Microsoft‘s (NASDAQ: MSFT) Azure.
The tech giant’s broad reach has fortified its results, with its revenue rising 44% in fiscal 2022 despite an economic downturn. The PC market experienced steep declines last year, but AMD’s less consumer-reliant segments kept its business profitable. In fact, its data center segment reported revenue growth of 64% year over year, with operating income increasing 86% last year.
Moreover, the potency of AMD’s chips gives it massive potential in high-growth markets such as artificial intelligence (AI) and virtual/augmented reality. As the tech industry advances, demand for the company’s hardware will only increase and could see AMD profit considerably, making its shares a better buy than any cryptocurrency.
Smart investors know to choose companies active in markets with tremendous growth potential, with this strategy likely to provide particularly big gains in the tech sector. Doing so can safeguard your investment over the long term and offer more growth than crypto.
For instance, the e-commerce market is expected to reach a value of $4 trillion in 2023 and expand at a compound annual growth rate (CAGR) of 11.5% through 2027. Amazon‘s (NASDAQ: AMZN) nearly unrivaled dominance in this industry makes its stock an immensely compelling option.
The company holds a 37.8% market share in online retail sales in the U.S. alone, with Walmart‘s 6.3% share coming in a distant second. Amazon’s dominance in the industry led to substantial losses in 2022 as a rise in the cost of living caused reductions in consumer spending. However, over the long term, the company stands to gain the most from the market’s recovery.
Amazon also holds the leading position in cloud services with Amazon Web Services. The company’s preeminence in two high-growth markets is expected to help the stock soar in the coming years. Analysts give Amazon shares an average 12-month price target of $137 — or a 34% rise from current levels — illustrating Wall Street’s optimism.
With the second-largest market capitalization in the world at $2.1 trillion, it’s not surprising that Microsoft has more growth potential than any cryptocurrency. The company’s home-grown brands like Windows, Office, Azure, and Xbox have granted it substantial market shares in various high-profit industries and given Microsoft the funds to invest in technologies of the future.
The company has featured in countless headlines in recent months after its $1 billion investment in OpenAI, the developer of ChatGPT, in 2019 has appeared to be the foresight of the decade. OpenAI stunned the tech industry last November with the release of ChatGPT and kicked off an AI race where countless companies have shifted focus to developing the technology.
Microsoft is currently winning as its partnership with OpenAI and further investment of $10 billion have allowed it to integrate the company’s technologies across its various services. Microsoft has so far enhanced its Office productivity software, cloud platform Azure, and search engine Bing with the start-up’s software.
If all goes to plan, Microsoft could attract millions of consumers and businesses to its platforms, offering the best in AI services. Considering the AI market is expected to grow at a CAGR of 37.3% through 2030, the company is well-positioned to see its stock soar.
As a result, Microsoft is a stellar stock, offering massive potential compared to any cryptocurrency on the market.
10 stocks we like better than Advanced Micro Devices
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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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Bitcoin, Microsoft, and Walmart. The Motley Fool has a disclosure policy.