Why These 3 Tech Stocks Might Outshine Cryptocurrencies in 2024

The Rise of Tech Stocks Over Cryptocurrencies

While the cryptocurrency market has seen significant price increases, tech stocks like Nvidia, AppLovin, and Taiwan Semiconductor are emerging as potentially more lucrative and stable investments.

Nvidia: A Leader in AI Processors

Nvidia (NASDAQ: NVDA) has established itself as a dominant player in the artificial intelligence (AI) sector. Its graphics processing units (GPUs) are found in 70% to 95% of AI data centers, making them essential for companies needing high-performance computing. In the third quarter, Nvidia reported:

• Sales growth of 94%, totaling $35.1 billion.
• Non-GAAP earnings per share soared 119% to $0.81.

The demand for Nvidia's technology is projected to grow, with CEO Jensen Huang estimating that companies may invest up to $2 trillion in upgrading AI data centers over the next five years. However, investors should be aware of Nvidia's forward price-to-earnings (P/E) ratio of 32.6, higher than the S&P 500's average of 24.

AppLovin: The Adtech Powerhouse

AppLovin (NASDAQ: APP) is revolutionizing advertising through AI, enabling companies to effectively place ads on connected TVs and mobile applications. The stock has surged 715% over the past year, with third-quarter results showing:

• Sales increased by 39% to $1.2 billion.
• Earnings per share skyrocketed by 317% to $1.25.

With the advertising market projected to reach $1 trillion in 2024 and 81% of digital ads expected to come from programmatic platforms like AppLovin's by 2028, the company is well-positioned for future growth.

Taiwan Semiconductor: The Backbone of Tech

Taiwan Semiconductor (NYSE: TSM) also stands out as a critical player in the tech industry, enabling advancements across various sectors, including AI and mobile technology. Its role in the semiconductor supply chain makes it an essential stock to watch as tech continues to evolve.

In summary, while cryptocurrencies may offer high-risk, high-reward opportunities, these tech stocks present a compelling case for more stable and potentially lucrative investments in the coming years.