2 Tech Stocks With More Potential Than Any Cryptocurrency

Chris Neiger, The Motley Fool

Thu, Apr 3, 2025, 8:03 AM 5 min read

The cryptocurrency market temporarily got a boost following President Donald Trump's electoral win, as some investors hoped his lighter approach to crypto regulation and outright promotion of certain coins would lift many digital tokens higher.

But the threat of tariffs, fears of a potential recession, and increasing pessimism from some investors have caused many cryptos to fall over the past few months. While tech stocks have suffered the same fate, I think the long-term potential in tech stocks is higher and based on more concrete use cases.

Here are two tech stocks that could end up ahead of crypto's gains in the coming years.

Taiwan Semiconductor Manufacturing (NYSE: TSM) is the largest semiconductor manufacturing company in the world and has already benefited immensely from the surge of chip demand from artificial intelligence. In addition to its general chip manufacturing dominance, it also makes an estimated 90% of the world's AI processors.

The financial results from Taiwan Semiconductor's chip-manufacturing lead have been phenomenal. The company's sales spiked 37% in the fourth quarter (ended Dec. 31) to $26.9 billion and diluted earnings per share surged 57% to $2.24 per American depositary receipt.

There's been a lot of talk about AI stocks falling lately, but it's far too premature to call the artificial intelligence boom over. Tech companies large and small are investing heavily in AI software and services and that will spur sales of advanced semiconductors for years to come.

Taiwan Semiconductor certainly thinks so, with CEO C.C. Wei saying on the recent earnings call that, "Even after more than tripling in 2024, we forecast our revenue from AI accelerators to double in 2025 as the strong surge in AI-related demand continues."

With Taiwan Semiconductor's stock down 15% after the recent tech sell-off, the company's shares are trading at a relative discount with a price-to-earnings ratio of 24.1, down from a P/E of 30 just six months ago.

Nvidia's (NASDAQ: NVDA) long-term potential is in the same vein as Taiwan Semiconductor's. While Nvidia doesn't manufacture semiconductors, its chip designs account for some of the most advanced AI processors on the market.

Tech companies have clamored to get their hands on Nvidia processors over the past few years, resulting in the company's accelerators accounting for up to 95% of all AI chips worldwide. The demand has boosted Nvidia's sales and earnings, including a 78% jump in sales in the fourth quarter to $39.3 billion and diluted EPS growth of 82% to $0.89.