2 Tech Stocks With More Potential Than Any Cryptocurrency

1 week ago 4

Chris Neiger, The Motley Fool

Thu, Apr 3, 2025, 8:03 AM 5 min read

But the menace of tariffs, fears of a imaginable recession, and expanding pessimism from immoderate investors person caused galore cryptos to autumn implicit the past fewer months. While tech stocks person suffered the aforesaid fate, I deliberation the semipermanent imaginable successful tech stocks is higher and based connected much factual usage cases.

Here are 2 tech stocks that could extremity up up of crypto's gains successful the coming years.

A idiosyncratic looking astatine graphs connected screens.

Taiwan Semiconductor Manufacturing (NYSE: TSM) is the largest semiconductor manufacturing institution successful the satellite and has already benefited immensely from the surge of spot request from artificial intelligence. In summation to its wide spot manufacturing dominance, it besides makes an estimated 90% of the world's AI processors.

The fiscal results from Taiwan Semiconductor's chip-manufacturing pb person been phenomenal. The company's income spiked 37% successful the 4th fourth (ended Dec. 31) to $26.9 cardinal and diluted net per stock surged 57% to $2.24 per American depositary receipt.

There's been a batch of speech astir AI stocks falling lately, but it's acold excessively premature to telephone the artificial quality roar over. Tech companies ample and tiny are investing heavy successful AI bundle and services and that volition spur income of precocious semiconductors for years to come.

Taiwan Semiconductor surely thinks so, with CEO C.C. Wei saying connected the caller net telephone that, "Even aft much than tripling successful 2024, we forecast our gross from AI accelerators to treble successful 2025 arsenic the beardown surge successful AI-related request continues."

With Taiwan Semiconductor's banal down 15% aft the caller tech sell-off, the company's shares are trading astatine a comparative discount with a price-to-earnings ratio of 24.1, down from a P/E of 30 conscionable six months ago.

Nvidia's (NASDAQ: NVDA) semipermanent imaginable is successful the aforesaid vein arsenic Taiwan Semiconductor's. While Nvidia doesn't manufacture semiconductors, its spot designs relationship for immoderate of the astir precocious AI processors connected the market.

Tech companies person clamored to get their hands connected Nvidia processors implicit the past fewer years, resulting successful the company's accelerators accounting for up to 95% of each AI chips worldwide. The request has boosted Nvidia's income and earnings, including a 78% leap successful income successful the 4th fourth to $39.3 cardinal and diluted EPS maturation of 82% to $0.89.