Nvidia, Axcelis, and Pinterest might all generate greater features than the highest tokens.
The cryptocurrency market warmed up over the previous yr as stabilizing rates of interest drove many buyers towards speculative investments once more. However cryptocurrencies nonetheless aren’t for everybody; a lot of the market’s prime tokens are nonetheless notoriously risky, and their costs are largely pushed by provide, demand, and market hype.
So in case you’re on the lookout for development however do not need to roll the cube on cryptocurrencies but, it is a good suggestion to purchase just a few promising tech shares with firmer underlying companies as a substitute. I consider these three shares match the invoice: Nvidia (NVDA -0.71%), Axcelis Applied sciences (ACLS 0.85%), and Pinterest (PINS -0.57%).
Picture supply: Getty Photographs.
1. Nvidia
Nvidia is the world’s largest producer of discrete graphics processing items (GPUs). The chipmaker managed 88% of the discrete desktop GPU market within the first quarter of 2024, in keeping with Jon Peddle Analysis, and 97% of the AI accelerator market in 2023, in keeping with TechInsights.
Nvidia as soon as generated most of its income from gaming GPUs, however the speedy development of the artificial intelligence (AI) market turned its knowledge heart enterprise into its core development engine. Main AI firms like Microsoft, OpenAI, and Alphabet‘s Google all use its knowledge heart GPUs to course of complicated AI duties. It generated 87% of its income from these chips in its newest quarter.
Nvidia’s inventory has already soared 3,220% over the previous 5 years, nevertheless it might head even increased for 2 simple reasons. First, it is nonetheless rising like a weed. Its income and adjusted EPS surged 126% and 288%, respectively, in fiscal 2024 (which resulted in January 2024).
Analysts count on its income and adjusted EPS to rise one other 98% and 109%, respectively, in fiscal 2025 because the market’s demand for its knowledge heart chips continues to outstrip its out there provide. Second, Nvidia’s inventory seems moderately valued at 47 instances ahead earnings, so it might nonetheless generate greater features than most cryptocurrencies.
2. Axcelis Applied sciences
Axcelis’ ion implantation techniques are used to implant the ions of 1 aspect into one other materials. Within the semiconductor market, its techniques are used to insert carbon ions into silicon to supply silicon carbide (SiC), a strong materials that may function at increased voltages, temperatures, and frequencies than conventional silicon chips.
The resilience of SiC chips makes them superb for short-length LEDs, lasers, 5G base stations, army radars, and electrical automobiles (EVs). Brisk gross sales of EVs initially lit a fireplace underneath Axcelis and different SiC shares, however the bulls finally retreated because the EV market cooled off over the previous two years. It was additionally affected by the reminiscence market’s cyclical slowdown, as a result of its techniques are used to supply DRAM and NAND chips, in addition to macro headwinds in China.
That is why Axcelis’ inventory has tumbled nearly 40% after it hit its all-time excessive final July. However after that decline, its shares look moderately valued at 20 instances ahead earnings. Analysts count on its income and adjusted EPS to dip 7% and 15%, respectively, in 2024. However in 2025, they forecast its income and adjusted EPS to develop 16% and 28%, respectively, because it overcomes cyclical and macroeconomic challenges.
From 2024 to 2029, the SiC business might develop at a compound annual development fee (CAGR) of 32.6%, in keeping with Markets and Markets. That secular development might drive Axcelis’ inventory to recent highs by the tip of the last decade.
3. Pinterest
Pinterest carved out its personal area of interest within the crowded social media market with its digital pinboards, which inspired customers to curate and share their hobbies and pursuits with one another. Its pinboards had been additionally a pure match for retailers, permitting them to add their catalogs to its platform as shoppable pins with built-in funds.
Pinterest’s development accelerated considerably through the pandemic as extra folks looked for on-line buying concepts, recipes, DIY tasks, and household actions throughout its pinboards. However its enlargement cooled off after the pandemic waned, and its income solely rose 9% in each 2022 and 2023. That slowdown brought on many buyers to dismiss it as pandemic-era fad inventory, however its income development really accelerated over the previous 5 quarters.
Its month-to-month lively customers (MAUs) rose 12% yr over yr to 518 million in Q1 2024, marking its second consecutive quarter of double-digit MAU development, as its common income per consumer (ARPU) elevated once more over the previous three quarters. That restoration was fueled by its abroad enlargement, recent video content material, AI-driven suggestions based mostly on its curated content material, new e-commerce instruments, and a wholesome inflow of Gen Z customers, who now account for over 40% of its MAUs.
Analysts count on Pinterest’s income and adjusted EPS to leap 20% and 33%, respectively, in 2024. That acceleration suggests it has loads of room to develop — and its inventory nonetheless seems moderately valued at 30 instances ahead earnings.
Suzanne Frey, an govt at Alphabet, is a member of The Motley Idiot’s board of administrators. Leo Sun has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Alphabet, Microsoft, Nvidia, and Pinterest. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure policy.
