Blockchain
3 Blockchain Stocks to Buy Before the Game Gets Late
These blockchain stocks to buy give the feeling that blockchain technology has been here forever
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A good strategy for investors of all types is to periodically reallocate towards emerging sectors. Blockchain technology has been one of these sectors for several years. Using a baseball analogy, blockchain technology isn’t in its early innings, but it’s not time for the final innings. This means it’s still a good time to consider the best blockchain stocks to buy.
Blockchain is often called the reason to own Bitcoin or other cryptocurrencies. Blockchain technology enables a distributed ledger technology that will keep records decentralized.
According to Grand View Research, the global blockchain market was worth $17 billion in 2023. However, many forecasts suggest it could expand to $1.4 trillion by 2030, a compound annual growth rate (CAGR) by almost 88%.
That said, there is still time before widespread adoption of bitcoin. That’s why now is a good time to look for blockchain stocks to buy. Here are three you might consider.
Advanced Microdevices (AMD)
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Semiconductor stocks they play a vital role in how organizations implement blockchain technology. While Nvidia (NASDAQ:NVDA) remains a solid choice, this might be a good time to look into it Advanced microdevices (NASDAQ:AMD) as one of the blockchain stocks to buy.
Advanced Micro Devices’ blockchain solution is its own Vitis Blockchain library acceleration solution. This “provides the flexibility to mine more coins and optimize more protocols.” Digital mining commonly brings Bitcoin to mine. However, Ethereum (ETH-USD) is an interesting place to look. It is the second largest cryptocurrency with many applications, such as smart contracts, which will make the token desirable.
Some experts believe that Ethereum can do this reach a price of $40,000 by 2030. For this type of scalability to be realized, AMD’s blockchain solution is likely to be adopted play a critical role.
AMD’s latest earnings were reported on April 30, and the stock immediately fell 7% on concerns about slowing growth. But while analysts are reducing their price targets, nearly all are above the consensus price target, suggesting this pullback is a pause that presents an opportunity for long-term investors.
Amazon (AMZN)
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Amazon (NASDAQ:AMZN) is a small player in blockchain technology. But if you’re looking for growth opportunities, Amazon is a good place to look. Today, Amazon offers Amazon Managed Blockchain through its AWS platform. This allows you to create and manage your own Blockchain networks.
However, growth in this area will come if, and more likely when, the company leverages its blockchain solution to incorporate blockchain into the e-commerce side of the business.
Buying AMZN stock can be an example of riding the hot hand. The stock is up 78% for the year. However, following the strong earnings report, analysts still have a Strong Buy rating consensus on the stock with a price target suggesting a 21% upside move from the closing price on May 1, 2024.
Global X Blockchain ETF (BKCH)
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However, like artificial intelligence, blockchain technology has many facets. This includes pick and shovel companies that provide the hardware to the software that developers need to integrate with a custom or existing blockchain. And, of course, to the cryptocurrency market.
One way to gain exposure to the sector without picking a single stock is the 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:CURRENCY) AND To block (NYSE:m2), with above 81% of the fund’s geographic exposure be in the United States.
The fund has a modest expense ratio of 0.50% and also pays a dividend with a yield of 2.75% starting May 1, 2024.
As of the date of publication, Chris Markoch did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.