Despite being overshadowed by AI in recent years, blockchain is still a disruptive technology. It has the potential to further revolutionize the payments industry, and provide outsized returns to shareholders. When discovering the best blockchain stock to buy in this arena, people have many options. In this article, we’ll uncover the companies that hold the most potential, and outline their competitive position against their peers.
The best blockchain stock for you might be different from someone else. For this reason, I’ve covered stocks that each take a unique approach to this disruptive technology.
So let’s dive in with the first recommendation.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) is a bitcoin mining company that provides special cryptocurrency mining computers. Riot Blockchain is a direct play on the growth of blockchain technology and cryptocurrencies, specifically Bitcoin (BTC-USD). The company’s focus on Bitcoin mining positions it to benefit from the increasing adoption and acceptance of Bitcoin.
RIOT stock benefitted from a key tailwind this week. Vanguard Group, managing more than $8 trillion in assets, significantly increased its stake in Bitcoin miners, including Riot Platforms where it now holds about a 10% stake valued at $300 million.
Riot Platforms went on a huge rally since the start of this year. It’s up 444.25% year to date and 177.44% throughout the past year. Its EPS grew 73.70% in 2023 and it trades above its analyst price target of $16.19.
Mastercard (MA)
Mastercard (NYSE:MA) is a technology company that operates in the payments industry. It provides payment solutions for the development and implementation of credit, debit, prepaid, commercial and payment programs. MA stock also has a notable and growing footprint in the world of blockchain.
One such initiative is the launch of the Multi-Token Network (MTN), which aims to make transactions within the digital asset and blockchain ecosystems more streamlined and efficient. Mastercard also launched its Mastercard Crypto Credential in April, which ensures that financial institutions, governments, brands and crypto organizations meet industry-defined standards.
There are more reasons for investors to hop on board MA stock. It trades below its $442.14 analyst price target and it’s very close to making a new 52-week high. The brand’s stock is up 15.72% year to date.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) is a key player in the semiconductor industry. This is a critical component of blockchain technology. I chose AMD stock instead of its competitor Nvidia (NASDAQ:NVDA) since the latter’s valuation is too rich for my taste. AMD stock may also have plenty of fuel left in its tank before it becomes overvalued.
A good reason to pick up AMD shares now is that Robot Cache, a unique digital game distributor that allows gamers to sell used digital games, is exiting its beta phase after three years. The platform, which operates on blockchain technology, enables gamers to buy games and sell them once they’re done playing. It splits the revenue from the games sold between developers and sellers. This is a great step in the right direction, and is an excellent example of how blockchain can serve real-world utility for everyday users.
On the technical side, things also look good. AMD has a price target of $133.38, and its EPS is forecasted to surge 48.93% next year. This makes it the best blockchain stock for investors to monitor or add to their portfolios.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
