Crypto Volatility Spurs Shift Toward Tech Stocks
The crypto market saw a brief rally following Donald Trump’s election win, buoyed by expectations of favorable regulation. Yet those hopes have faded. With new tariffs looming, recession fears rising, and investor sentiment turning cautious, digital assets have taken a sharp turn downward in recent months.
Despite sharing some losses, tech stocks may have stronger fundamentals. Here are two companies—Taiwan Semiconductor and Nvidia—that could outperform crypto in the long term.
Taiwan Semiconductor’s AI Surge Could Outpace Crypto
Taiwan Semiconductor Manufacturing (NYSE: TSM) is a cornerstone of the global chip industry. As the world’s largest contract chipmaker, it produces nearly 90% of all AI processors. While crypto assets fluctuate on sentiment and speculation, TSM benefits from real-world demand.
In Q4, TSM’s revenue jumped 37% year-over-year to $26.9 billion. EPS rose 57% to $2.24 per ADR. Despite macro uncertainty, AI chip demand remains robust. CEO C.C. Wei projects AI accelerator revenue will double in 2025, reinforcing the company’s confidence in long-term growth.
TSM stock is down 15% after recent tech sector turbulence, now trading at a P/E of 24.1, making it a compelling value compared to historical levels.
Nvidia Still Dominates AI Hardware
Nvidia (NASDAQ: NVDA) designs some of the most advanced chips in the world, powering up to 95% of all AI data centers. Unlike many crypto tokens with uncertain use cases, Nvidia’s hardware is integral to real applications, from generative AI to robotics.
In its Q4 report, Nvidia posted 78% revenue growth, hitting $39.3 billion, while EPS surged 82% to $0.89. Its Blackwell AI processors alone generated $11 billion in one quarter, setting a company record.
Even if macro headwinds slow down data center spending, Nvidia is well-positioned for the long-term AI buildout, with analysts expecting AI to contribute $15.7 trillion to global GDP by 2030, according to PwC.
Tech Offers More Tangible Value Than Crypto
While crypto remains an exciting speculative asset class, tech leaders like TSM and Nvidia provide more concrete value. Their revenues, products, and growth pipelines offer stability that most crypto assets simply cannot match.
That’s not to say crypto lacks all merit—it can be part of a diversified portfolio. But investors looking for more reliable growth may find better opportunities in tech, particularly as the AI revolution accelerates.