3 Tech Stocks With More Potential Than Any Cryptocurrency

As a passionate advocate for the crypto world, I must confess that the allure of digital currencies can be hard to resist, given their impressive returns over the last decade. However, let me emphasize that past success doesn’t automatically translate into future prosperity. The truth is, many cryptocurrencies continue to ride the wave of headlines rather than being valued for their scarcity or the practical applications of their underlying blockchain technology.

Instead of concentrating your investment in volatile cryptocurrencies, it could be wiser to consider high-growth tech companies such as Snap, Lemonade, and Aehr Test Systems. Here’s a brief overview of these stocks to understand why they might be more prudent choices than any cryptocurrency.

Snap

2023 saw a slowdown for Snap Inc., the organization behind Snapchat. This downturn was attributed to several factors: Apple’s privacy updates on iOS, fierce competition from TikTok owned by ByteDance and Instagram belonging to Meta, as well as challenging economic conditions globally, collectively impacting their ad revenue. Additionally, the company faced difficulties in increasing its daily active users (DAUs) within its primary North American market.

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But in 2024, Snap’s revenue rose 16%. That acceleration was driven by:

  • Robust overseas growth
  • Fresh first-party ad tools that addressed Apple’s iOS changes
  • Snapchat+ subscriptions
  • Artificial intelligence (AI)-powered AR lenses
  • Spotlight’s video recommendations

By the beginning of 2025, I noticed that the daily active users (DAUs) of the company had reached an all-time peak, surging by 9% compared to the same period in the previous year, and settling at an astounding 460 million.

Snap doesn’t plan to offer further advice as it anticipates tariffs and economic challenges affecting its advertising sales to Chinese e-commerce firms. However, for the entire year, analysts predict revenue to increase by 9% to $5.84 billion, with the company’s adjusted EBITDA expanding by 6%. From 2024 through 2027, analysts foresee a compound annual growth rate (CAGR) of 10% for revenue and 32% for adjusted EBITDA.

This stock exhibits robust growth, considering it is priced at only three times its annual revenue and twenty-nine times its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). If Snap Inc. continues to expand, it could potentially outperform other cryptocurrencies and win over optimistic investors once more.

Lemonade

In the bustling realm of insurance, I’ve noticed an intriguing player carving out a rapid growth niche – Lemonade. Their unique selling point? An AI-empowered platform that simplifies both the application and claims process, leveraging chatbots and algorithms. This digital-age approach has made it a go-to choice for the younger demographic and first-time buyers, who appreciate its modern, user-friendly approach.

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Five years after making my public debut, I’ve broadened my horizons beyond homeowners’ and renters’ insurance! Now, you can find me offering more term life, pet health, and auto plans. To mitigate potential large-scale losses, I’ve partnered with some big reinsurers who help shoulder a portion of the risks in these new areas. Exciting times ahead as I continue to grow and serve you better!

2023 saw a deceleration in the company’s customer growth and increase in active insurance policies, due to complications in obtaining timely rate approvals for their home and auto insurance policies across multiple states. This predicament led to a reduction in approved policies and held back its immediate growth expansion.

2024 marked a significant leap forward for Lemonade as I witnessed the swift approval of additional rate agreements. Moreover, their AI-centric pricing strategy was greenlighted across more states. In response, they increased investments aimed at customer acquisition, leading us to the first quarter of 2025 where the customer base swelled by an impressive 21% year-on-year, reaching a record-breaking 2.55 million strong.

Between 2024 and 2027, analysts predict Lemonade’s revenue will increase by an average of 41% annually. By the end of this period, they also forecast that its adjusted EBITDA will be in positive territory. This is a very high growth rate for a company whose stock currently sells for only 4 times its sales for this year. If Lemonade continues to gain new customers at the current pace, it could potentially yield returns greater than many cryptocurrencies.

Aehr Test Systems

Aehr manufactures testing and conditioning equipment specifically for semiconductor manufacturers. Initially not drawing much attention, it was only in 2021 that it started to garner significant interest from investors. This shift occurred when they perceived Aehr as a promising investment opportunity related to silicon carbide (SiC) chips. These chips are capable of withstanding higher voltages, functioning at higher temperatures, and running on faster frequencies compared to conventional silicon chips.

The robustness of Silicon Carbide (SiC) chips makes them ideal for applications such as lasers, 5G base stations, radar systems, and electric vehicles (EVs). Among the handful of companies producing testing and burn-in equipment for SiC chips, Aehr is one notable example.

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In the fiscal year ending May 2025, Aehr’s revenue dipped due to challenges posed by a sluggish electric vehicle market, import tariff hold-ups, and an increased focus on less expensive items. However, analysts predict that from fiscal 2025 through 2027, the company’s revenue will expand at a compound annual growth rate (CAGR) of 22%. Furthermore, they anticipate Aehr’s adjusted EBITDA to become profitable in fiscal 2025 and increase by 58% in fiscal 2026.

Aehr’s immediate drivers include the increasing need for its testing and burn-in tools in the rapidly growing AI market, the progressive revival of the electric vehicle (EV) market, the addition of new gallium nitride (GaN) chips and silicon photonics products to their portfolio, as well as their international expansion. Their stock appears reasonably priced at 7 times this year’s sales and could see significant growth momentum as the EV market strengthens and the AI market continues to grow.

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2025-07-20 03:51