The global cryptocurrency market has seen significant growth in recent years, with revenue hitting $5 billion in 2022. Despite this growth, the market’s compound annual growth rate (CAGR) is projected to be 12% through 2030, paling in comparison to the artificial intelligence (AI) market’s CAGR of 37% and value of $137 billion for the rest of the decade.
The volatility of cryptocurrencies has led to a pullback from investors, while tech stocks have consistently rewarded investors with substantial gains over the long term. The recent boom in AI has further fueled the growth potential of tech companies, making them more attractive investments compared to cryptocurrencies.
Three AI stocks stand out as having more potential than any cryptocurrency in the market.
1. Nvidia: Nvidia (NASDAQ: NVDA) has become a dominant player in the AI market with its GPUs, securing an estimated 80% to 95% market share in AI chips. The company’s revenue surged in the fourth quarter of 2024, with operating income jumping 983% year over year. Nvidia’s earnings could reach $34 per share over the next two fiscal years, projecting a stock price of $1,094 and potential 39% stock growth by fiscal 2027.
2. Microsoft: Microsoft (NASDAQ: MSFT) has established itself as a tech giant with brands like Windows, Office, Xbox, and LinkedIn. The company’s expanding role in AI, including a partnership with OpenAI, has led to new AI features across its product lineup. Microsoft’s earnings could reach nearly $16 per share over the next two fiscal years, projecting a stock price of $550 and potential 35% stock growth by fiscal 2026.
3. Advanced Micro Devices: Advanced Micro Devices (NASDAQ: AMD) has significant potential in the hardware side of AI, competing with Nvidia in the AI GPU market. AMD recently introduced its MI300X AI GPU, signing on major clients like Microsoft and Meta Platforms. AMD aims to lead the AI-powered PC market, with earnings expected to reach just above $7 per share over the next two fiscal years, projecting a stock price of $352 and potential doubling of stock price by fiscal 2026.
Overall, these three AI stocks have more potential for growth than any cryptocurrency in the market, making them attractive investments for investors looking to capitalize on the AI boom.
