A good strategy for investors of all types is to reallocate toward emerging sectors periodically. For several years, blockchain technology has been one of those sectors. Using a baseball analogy, blockchain technology isn’t in the early innings, but it’s not time for the last at-bats. That means it’s still a good time to consider the top blockchain stocks to buy.
Blockchain is often called the reason for owning Bitcoin or other cryptocurrencies. Blockchain technology allows distributed ledger technology that will keep records decentralized.
According to Grand View Research, the global blockchain market had a value of $17 billion in 2023. However, many forecasts suggest it could expand to $1.4 trillion by 2030, a compound annual growth rate (CAGR) of nearly 88%.
That said, there’s still time before widespread bitcoin adoption. That’s why now is a good time to look for blockchain stocks to buy. Here are three that you may want to consider.
Advanced Micro Devices (AMD)
Semiconductor stocks play a vital role in how organizations implement blockchain technology. While Nvidia (NASDAQ:NVDA) remains a solid choice, this may be a good time to look at Advanced Micro Devices (NASDAQ:AMD) as one of the blockchain stocks to buy.
Advanced Micro Devices blockchain solution is its Vitis Blockchain library acceleration solution. This “provides the flexibility to mine multiple coins and optimize multiple protocols.” Digital mining commonly brings Bitcoin to mine. However, Ethereum (ETH-USD) is an interesting place to look. It’s the second largest cryptocurrency with many applications, such as smart contracts, that will make the token desirable.
Some experts believe Ethereum can reach a price of $40,000 by 2030. For that kind of scalability to happen, AMD’s blockchain solution will likely play a critical role.
AMD’s last reported earnings on April 30, and the stock promptly dropped 7% due to concerns over slowing growth. But while analysts are trimming their price targets, almost all are above the consensus price target, which suggests this pullback is a pause that is an opportunity for long-term investors.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is a small player in blockchain technology. But if you’re looking for growth opportunities, Amazon’s a good place to look. Today, Amazon offers Amazon Managed Blockchain through its AWS platform. This allows the creation and management of their 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 may be an example of riding the hot hand. The stock is up 78% for the year. However, after its strong earnings report, analysts still have a consensus Strong Buy rating on the stock with a price target that suggests a 21% upward move from its closing price on May 1, 2024.
Global X Blockchain ETF (BKCH)
However, like artificial intelligence, blockchain technology has many facets. That includes picks and shovels companies that provide the hardware to 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 an individual 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:COIN) and Block (NYSE:SQ), with over 81% of the fund’s geographic exposure being within the United States.
The fund has a modest 0.50% expense ratio and even pays a dividend with a 2.75% yield as of May 1, 2024.
On the date of publication, Chris Markoch did not have (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 the InvestorPlace.com Publishing Guidelines.
