The crypto market reached record heights during the COVID-19 pandemic, with the S&P Cryptocurrency Market index hitting $6,200 in November 2021. The same index has fallen about 68% since then, pulled down by reforms in how certain crypto is mined and businesses pulling back on offering it as a payment method.
As a result, tech stocks have become an increasingly attractive investment alternative thanks to their solid gains as a whole over the long term. For reference, the Nasdaq-100 Technology Sector index has risen 74% in the last five years, while the S&P Cryptocurrency Market index has increased by about 15%.
Here are three tech stocks with more potential today than any cryptocurrency.
1. Advanced Micro Devices
One of the best ways to invest in the stock market is by choosing companies that are active in high-growth markets. Doing so can lead to reliable gains as these companies profit from a sector's development. With that in mind, Advanced Micro Devices (AMD 0.79%) is one of the most compelling stocks right now.
The company is home to a solid chip business that supplies its hardware to some major corporations across the tech market. AMD chips can be found powering many devices and platforms, from game consoles to laptops, cloud services, custom-built PCs, and artificial intelligence (AI) programs. Its varied business allows investors to back multiple areas of tech, strengthening its stock potential.
AMD shares have soared 692% in the last five years, well above even the 252% that Bitcoin has risen in the same period. With markets like AI and cloud computing holding vast potential for the company, now is an excellent time to consider investing in AMD stock.
NASDAQ: AMD
Key Data Points
2. Microsoft
As with AMD, Microsoft (MSFT 2.51%) has solid positions in a variety of industries. Its home-grown brands like Windows, Office, Xbox, and Azure have granted it significant market shares in operating systems, productivity software, gaming, and the cloud market.
Additionally, the company's stature in tech has provided it with the funds to expand and invest in burgeoning industries. For instance, Microsoft invested $1 billion in ChatGPT developers OpenAI in 2019, which has seemingly put it at the forefront of AI.
The launch of ChatGPT last November triggered an AI race among some of the biggest names in tech, with Microsoft potentially at a massive advantage. Its partnership with OpenAI has allowed it to bring AI upgrades across its product lineup, including Azure, its Office productivity suite, and search engine Bing.
According to data from Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030 after hitting $137 billion in 2022. Considering Microsoft is likely to become the go-to for businesses and consumers seeking AI services, the company could enjoy massive gains in the coming years.
Alongside consistent growth in its other business, Microsoft has far more potential over the long term than any cryptocurrency available.
NASDAQ: MSFT
Key Data Points
3. Apple
Unlike many cryptocurrencies, Apple's (AAPL 1.62%) stock has a reputation for stability and reliable growth. The company's shares have climbed 271% in the last five years, primarily thanks to consistent demand for its products. Apple has built up considerable brand loyalty with consumers over the years by prioritizing quality and presenting its products in an interconnected ecosystem.
In 2022, Apple's sales strategy proved its strength. An economic downturn strained many companies, with smartphone shipments for Samsung and Xiaomi declining by 18.9% and 23.5% in the first quarter of this year. However, Apple seemed to fare far better than the competition, with its iPhone revenue increasing by 2% in the same quarter.
The company's dominance in consumer tech bodes well for the long-term potential of its venture into the virtual reality market and its other product categories.
Data by YCharts
The chart above illustrates how Apple has not only delivered investors more growth than the two biggest cryptocurrencies, Bitcoin and Ethereum, in the last five years, but has done so at a steadier and more reliable rate. Bitcoin and Ethereum's growth has seen massive peaks and valleys, illustrating their volatility. Meanwhile, Apple's popular products and potent brand can almost guarantee stock gains over the long term.
