It wasn't too long ago that cryptocurrencies were one of the hottest investments, with the media filled with stories of people getting rich seemingly overnight. However, excitement in the industry has cooled considerably. Investors have become wary of its volatility, with prices too often reactive to the whims of what certain tech moguls post on social media and other difficult-to-track factors.
The price of the most popular cryptocurrency, Bitcoin, reflects this apprehension. Bitcoin hit an all-time high in November 2021, exceeding a value of $65,000 per coin. However, its price has since lost more than half that value and sits at about $26,500. The cryptocurrency has fallen about 10% in value in just the last five days alone, with the decline not out of the norm based on its 2023 performance.
Conversely, the tech industry has proven itself as one of the most reliable places to invest. The sector is in a near-constant state of innovation, which keeps companies growing over the long term and offers investors consistent gains.
Here are three tech stocks with more potential than any cryptocurrency.
1. Amazon
Amazon (AMZN 0.41%) had a challenging 2022, with macroeconomic headwinds causing steep declines in its e-commerce earnings. However, this year has been one of recovery and growth. The company's North America segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, up from a negative $627 million in the year-ago period.
The improvement has rallied investors, with Amazon shares up 7% since the start of August. A recovering e-commerce business is a massive win for the tech company as retail sales make up about 80% of its revenue.
NASDAQ: AMZN
Key Data Points
Moreover, Amazon has made a significant push into artificial intelligence (AI) this year by adding new services to its cloud platform Amazon Web Services, and expanding into chip development. The company's potential in the high-growth market is promising for its long-term prospects, making its stock a more reliable investment than any cryptocurrency.
Demand for crypto appears to be on the decline. Meanwhile, Amazon is dominating two lucrative sectors, which could allow it to profit substantially over the long term. It's possible some cryptocurrencies may see unexpected spikes as they have done in the past. However, Amazon's solid position in tech makes it a more dependable and safer buy.
2. Advanced Micro Devices
Technological advances have made chip stocks an attractive investment option this year, with Advanced Micro Devices (AMD +3.36%) one of the biggest names in the industry. The company has solid positions in different areas of tech, including AI, cloud computing, data centers, gaming, personal computers, and more. Its diverse business allows investors to profit from the growth of multiple industries over the long term.
Like Amazon, AMD has pivoted a large part of its business to AI this year. In June, the company unveiled a new chip that is meant to compete directly with industry leader Nvidia. Meanwhile, AMD plans to invest about $400 million in India by 2028 to build its largest design center and stake its claim in one of the fastest-growing cloud markets.
Data by YCharts.
Additionally, the chart above illustrates how AMD's stock has granted investors significantly more growth than Bitcoin over the last five years. With the power of AI and other high-growth markets, the company will likely continue outperforming the cryptocurrency over the long term.
3. Apple
As the most valuable company in the world, with a market cap that surpassed $3 trillion earlier this year, Apple (AAPL +0.11%) is one of the most reliable investments available. The company offers a consistency that is nearly impossible to find in the crypto market.
As a result, it's not surprising that famous investors like Warren Buffett have become massive proponents of Apple's stock. Buffett's holdings company Berkshire Hathaway has dedicated over 45% of its portfolio to the iPhone company, with its second-largest investment being Bank of America, with about 9%. Meanwhile, Apple shares have risen 582% since Berkshire Hathaway first invested in 2016.
NASDAQ: AAPL
Key Data Points
Apple is one of the most recognizable brands in the world, with the popularity of its products achieving leading market shares in multiple areas of tech. The company has stumbled this year, with macroeconomic challenges causing declines in its product sales. However, its dominance in the industry continues to strengthen its long-term prospects.
Alongside growing businesses in AI and virtual/augmented reality, Apple's stock has far more growth potential than any cryptocurrency.
