The crypto market has undergone many changes since Bitcoin first landed on the scene in 2009. The digital currency originally sold investors on the idea of a decentralized network that could make transferring money easier and quicker without the involvement of banks or governing bodies. However, interest and trust in crypto have waned in recent years.
Investors have noted the volatility of many cryptocurrencies. Meanwhile, changes in how some crypto is mined and certain companies dropping it as an optional payment method have further dampened the market's reputation.
Alternatively, the stock market can be a haven for those seeking reliable, long-term investments. Companies active in high-growth industries like artificial intelligence (AI) can almost guarantee solid returns and safeguard your holdings over the long term. According to Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030, presenting an attractive investment opportunity.
So, here are three artificial intelligence stocks with more potential than any cryptocurrency.
1. Advanced Micro Devices
Advanced Micro Devices (AMD +3.55%) stock has risen 87% since Jan. 1, almost entirely on the back of a boom in AI. The company's hardware can run and develop AI models, giving it massive growth potential with its ability to supply chips to the entire market.
AMD started slightly on the back foot this year, with Nvidia taking the lead in AI chips. However, the semiconductor company has since put all of its efforts toward developing its position in the industry, revealing its most advanced graphics processing unit (GPU) this month meant to compete against Nvidia's offerings. The new chip has reportedly caught the eye of the world's largest cloud platform, Amazon (AMZN +2.02%) Web Services, with Reuters reporting the company is considering using AMD's hardware.
NASDAQ: AMD
Key Data Points
Moreover, AMD's prospects in AI have grown stronger after news broke that Microsoft (MSFT 0.60%) is supporting its AI chip expansion by providing financial and engineering resources. Alongside stock growth of 614% over the last five years, Advanced Micro Devices is an AI stock with vastly more potential than any cryptocurrency.
2. Microsoft
Microsoft has become one of the biggest names in AI after investing $1 billion in OpenAI in 2019, the start-up behind ChatGPT. The partnership has granted Microsoft exclusive licenses on multiple OpenAI models, which have allowed the company to gain a massive advantage against competitors like Alphabet and Amazon.
The Windows company has integrated OpenAI's technologies across its product lineup, with Word, Excel, Bing, and Azure all receiving AI updates so far. The dominance of these platforms gives Microsoft a solid outlook in AI. Its substantial market share in productivity software, cloud computing, and operating systems are valuable tools to attract anyone seeking AI services, which could see the company trounce the competition.
Data by YCharts.
The chart above illustrates how Microsoft's five-year stock growth is relatively close to the two largest cryptocurrencies, Bitcoin and Ethereum. However, while the digital currencies have experienced drastic peaks and valleys, Microsoft shares have gradually trended upward. The data indicates Microsoft's stock is the more reliable investment option and a screaming buy alongside its AI potential.
3. Amazon
Amazon's biggest advantage in AI comes from its dominating role in the cloud market with Amazon Web Services (AWS). The cloud industry has become closely aligned with AI growth this year as more and more companies strive to attract customers with AI services. Meanwhile, AWS' leading 32% market share makes it well-positioned to profit significantly from the AI's development.
Moreover, the e-commerce company has long used AI to make its business more efficient and better serve customers. Its online retail website utilizes AI to provide product recommendations, determine when specific products will be in demand, and optimize its fulfillment centers.
NASDAQ: AMZN
Key Data Points
Amazon's AI assistant Alexa has also expanded into several product categories, from speakers to watches, headphones, and more. While AI could bolster AWS' earnings over the long term, Amazon stock is also an excellent way to benefit from the technology's growth in other aspects of the tech industry.
Amazon is home to a potent business dominating two high-growth markets: e-commerce and cloud computing. Its endless potential makes its stock a better option than any cryptocurrency.
