Investing in artificial intelligence (AI) and cryptocurrency could yield impressive returns in the upcoming years. Here are two stocks that may prove particularly lucrative.
1. Advanced Micro Devices
According to PwC, AI is projected to boost the global economy by $15.7 trillion by 2030, presenting a significant opportunity for Advanced Micro Devices (AMD).
Although AMD’s stock faced a notable decline at the beginning of the year, it has begun to recover. The company is poised to supply a major AI firm with its new chips, which bodes well for its stock performance.
In recent years, a substantial amount of investment in chips has been directed toward AI training, where extensive datasets are used to enhance AI models. While Nvidia has capitalized on this market with its graphics processing units (GPUs), AMD has recently launched its first data center GPU, the MI300, which generated $5 billion in revenue last year.
Aiming for a $500 billion market opportunity, AMD is introducing new GPUs designed for AI inferencing. This is when AI models learn to make independent decisions based on new data. Given the market’s projected growth, AMD is well-positioned to leverage this promising opportunity.
2. Coinbase Global
The cryptocurrency sector surpassed a $3 trillion valuation as of June 12, but only 7% of the global population is currently utilizing cryptocurrencies, as reported by the crypto exchange Kraken. As the interest in digital currencies increases, Coinbase Global (COIN) stands to benefit significantly.
As a leading cryptocurrency exchange, Coinbase manages over $300 billion in assets on its platform. The company experienced a significant surge in revenue last year, driven by increased trading volumes, resulting in a nearly 600% rise in its stock since 2022.
Despite recent volatility reflecting market downturns, Coinbase has substantial opportunities to attract more users. It is expanding its range of trading products and services, especially targeting institutional investors, who constitute a chunk of its trading volume. New offerings in crypto options and stablecoins are enhancing its appeal to a broader customer base.
With rising demand for digital assets, Coinbase is likely to see a continual uptick in trading volumes and revenues. Recent indicators, such as a report revealing that 60% of Fortune 500 executives are pursuing blockchain initiatives and President Trump’s executive order to establish a Strategic Bitcoin Reserve for the U.S. government, support the long-term potential of cryptocurrencies.
John Ballard holds positions in Advanced Micro Devices and Nvidia. The Motley Fool recommends Advanced Micro Devices, Bitcoin, and Nvidia, as well as Coinbase Global. For further details, see their disclosure policy.
