These blockchain stocks to buy make it feel like blockchain technology has been around forever
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A good strategy for investors of all types is to regularly shift their investments into emerging sectors. Blockchain technology has been one of these sectors for several years. To use a baseball analogy, blockchain technology is not yet in its early stages, but it is not yet time for the final attacks. That means it’s still a good time to think about the best blockchain stocks to buy.
Blockchain is often cited as a reason to own Bitcoin or other cryptocurrencies. Blockchain technology enables distributed ledger technology that keeps records in a decentralized manner.
According to Grand View Research, the global blockchain market was worth $17 billion in 2023. However, many forecasts suggest it could grow to $1.4 trillion by 2030, a compound annual growth rate (CAGR) of nearly 88%.
However, there is still time until Bitcoin is widely adopted. That’s why now is a good time to look for blockchain stocks to buy. Here are three you might want to consider.
Advanced Micro Devices (AMD)
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Semiconductor stocks play a crucial role in companies’ implementation of blockchain technology. While Nvidia (NASDAQ:NVDA) remains a solid choice, this might be a good time to consider it modern micro devices (NASDAQ:AMD) as one of the blockchain stocks to buy.
Advanced Micro Devices’ blockchain solution is the solution Vitis Blockchain Library acceleration solution. This “provides the flexibility to mine multiple coins and optimize multiple protocols.” Digital mining is commonly used to mine Bitcoin. However, ether (ETH-USD) is an interesting place to look. It is the second largest cryptocurrency with many applications such as: B. Smart contracts that make the token desirable.
Some experts believe Ethereum can do this reach a price of $40,000 by 2030. Enabling this kind of scalability will likely require AMD’s blockchain solution play a crucial role.
AMD’s last earnings announcement was on April 30, after which the stock immediately fell 7% on concerns about slowing growth. But while analysts are reducing their price targets, almost all are above the consensus price target, suggesting that this decline is a pause that represents an opportunity for long-term investors.
Amazon (AMZN)
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Amazon (NASDAQ:AMZN) is a small player in blockchain technology. However, if you’re looking for growth opportunities, Amazon is a good place to start. Today, Amazon offers Amazon Managed Blockchain through its AWS platform. This enables the creation and management of their blockchain networks.
However, growth will occur in this area if and more likely when the company leverages its blockchain solution to integrate blockchain into the e-commerce side of the business.
Buying AMZN stock could be an example of staying in the fast lane. The stock is up 78% for the year. However, following the strong earnings report, analysts still agree that the stock is a Strong Buy, with a price target suggesting a 21% upside from its May 1, 2024 closing price.
Global X Blockchain ETF (BKCH)
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However, blockchain technology, like artificial intelligence, has many facets. This includes pickaxe and shovel companies that provide the hardware for the software developers need to integrate with a custom or existing blockchain. And of course to the cryptocurrency market.
One way to get exposure to the sector without picking a single stock is to Global X Blockchain ETF (NASDAQ:BKCH). The fund has approximately $122 million in assets under management (AUM). The fund holds a diverse group of 26 stocks including Coinbase (NASDAQ:COIN) And block (NYSE:square), with more than 81% of the fund’s geographic exposure be within the United States.
The fund has a modest expense ratio of 0.50% and will even pay a dividend with a yield of 2.75% starting May 1, 2024.
At the time of publication, Chris Markoch did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.