The cryptocurrency market has been heating up, with stable interest rates attracting many investors back to speculative investments. However, cryptocurrencies remain highly volatile and risky. If you want growth without the gamble, consider investing in solid tech stocks. Here are three promising tech companies: Nvidia, Axcelis Technologies, and Pinterest.
1. Nvidia (NASDAQ: NVDA)
Nvidia is the leading producer of graphics processing units (GPUs). The company dominates the market, with a massive 88% share of discrete desktop GPUs and 97% of the AI accelerator market.
Nvidia used to make most of its money from gaming GPUs. Now, its biggest growth comes from data center GPUs used by top AI companies like Microsoft, OpenAI, and Google. These data center chips made up 87% of Nvidia’s revenue in the latest quarter.
Nvidia’s stock has soared 3,220% over the past five years, and it’s still growing fast. In fiscal 2024, its revenue and adjusted earnings per share (EPS) increased by 126% and 288%, respectively. Analysts predict further growth in fiscal 2025, expecting revenue and adjusted EPS to rise by 98% and 109%. Nvidia’s stock is reasonably valued at 47 times forward earnings, making it a potentially better investment than many cryptocurrencies.
2. Axcelis Technologies (NASDAQ: ACLS)
Axcelis Technologies makes ion implantation systems, used to insert ions into materials. These systems are crucial in making silicon carbide (SiC) chips, which are more robust than traditional silicon chips. SiC chips are used in LEDs, lasers, 5G base stations, military radars, and electric vehicles (EVs).
The EV market initially boosted Axcelis’ growth, but the stock fell nearly 40% after reaching its peak last July due to market slowdowns and macroeconomic challenges. Despite this, Axcelis’ stock is still a good investment, valued at 20 times forward earnings. Analysts expect a dip in revenue and adjusted EPS in 2024, but forecast a 16% and 28% growth in 2025. The SiC industry is projected to grow at a compound annual growth rate (CAGR) of 32.6% from 2024 to 2029, promising future growth for Axcelis.
3. Pinterest (NYSE: PINS)
Pinterest offers a unique social media platform with virtual pinboards for sharing hobbies and interests. It’s also popular with retailers who use shoppable pins to showcase their products.
Pinterest saw a surge during the pandemic but slowed down afterward, with revenue growth of only 9% in both 2022 and 2023. However, its growth has picked up again, with monthly active users (MAUs) increasing by 12% year over year to 518 million in Q1 2024. This growth is driven by overseas expansion, new video content, AI-driven recommendations, and an influx of Gen Z users.
Analysts expect Pinterest’s revenue and adjusted EPS to rise by 20% and 33% in 2024. With a valuation of 30 times forward earnings, Pinterest has significant growth potential.
Should You Invest $1,000 in Nvidia Right Now?
Before buying Nvidia stock, consider this: The Motley Fool Stock Advisor team identified 10 top stocks for investors, and Nvidia wasn’t one of them. The stocks that made the list could deliver impressive returns in the coming years.
When Nvidia was recommended on April 15, 2005, a $1,000 investment would now be worth $746,217!
Summary
If you’re looking for safer growth investments, consider tech stocks like Nvidia, Axcelis Technologies, and Pinterest. These companies have strong fundamentals and promising futures, making them better options than volatile cryptocurrencies.