Web3 stocks are part of the future of finance and investing. These companies are uniquely positioned at the intersection of many trends in cryptocurrency, blockchain and digital identity investing. Whether you are skeptical about the value of these companies in the short term, what’s undeniable is that many consider them to potentially be worth far more in the future.
The Web3 stocks discussed in this article all have unique competitive advantages and economic moats, which make them worthy of consideration by many investors who seek growth. Not only that but given their exposure to the broader cryptocurrency markets, they may be effective diversifiers too.
So here are the best Web3 stocks to consider for the next generation internet.
Coinbase (COIN)
Coinbase (NASDAQ:COIN) is a leading cryptocurrency exchange platform that has positioned itself as a major player in the crypto trading space. It has a significant first-mover advantage of being the first commercially successful cryptocurrency exchange in the U.S., heralding the popularity of Bitcoin (BTC-USD) to investors in the region.
Coinbase is actively investing in new companies and technologies to solidify its position in the Web3 ecosystem, with a strategy focused on acquisitions and building new Web3 businesses.
Recently, Coinbase introduced a Web3 wallet through its Prime division, targeting professionals and institutions. The wallet allows secure access to cryptocurrencies, NFTs, decentralized apps (dapps) and broader DeFi services, facilitating direct interaction with on-chain applications, dapps and smart contracts. That makes it one of the Web3 stocks to consider.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) is a giant in the semiconductor industry, known for its powerful CPUs and GPUs.
Despite market fluctuations, AMD’s innovative product offerings, like the Ryzen 9 7950X3D and strategic acquisitions position it as a strong contender in the Web3 technology space. On top of that, AMD’s stock price soared this year, gaining over 64% year-to-date, thus also making it a potential momentum play.
AMD’s foray into the hardware side of Web3 has largely been made possible through acquisitions. For instance, the company’s acquisition of Xilinx, a leader in specialized embedded chips, strengthens its position in the evolving Web3 landscape, enabling it to capitalize on opportunities in areas like the Internet of Things and artificial intelligence.
Unity Software (U)
Unity Software (NYSE:U) is known for its game engine and development tools, enabling the creation of interactive, real-time 2D and 3D content.
Like with AMD, Unity isn’t a pure-play Web3 stock (which is hard to come by) but instead provides the picks and shovels to enable the Web3 ecosystem to thrive. For instance, its technology is widely used across various industries, including gaming and architecture, showcasing its versatility and potential for broader adoption in the Web3 space.
Unity’s biggest move into Web3 came at the beginning of the year. It added the “decentralization” category to its online storefront. That new feature facilitates the integration of technology NFTs and the metaverse into gaming experiences. Unity’s move aims to connect game developers with the rising Web3 gaming sector, marking a significant advancement in the gaming industry’s adoption of blockchain technologies.
The efforts definitely make U stock one of those Web3 companies to pay attention to moving forward.
On the date of publication, Matthew Farley did not hold (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.