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3 Blockchain Stocks Poised for Big Returns in 2022
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Blockchain technology has come to the forefront in 2021, thanks to the growing acceptance of cryptocurrencies. However, this is not the only factor driving demand for this dynamic technology.
Blockchain has helped enterprises and government agencies tackle prominent issues, including data tracing, security, visibility and management, and supply-chain supervision.
Blockchain is an electronic distributed ledger. It is relatively faster in closing a transaction as the need for manual processing and authentication by intermediaries is eliminated as it deploys a distributed consensus.
Moreover, as blockchain uses distributed consensus, it isn't easy to alter data on the system without alerting the entire network. This makes the system enormously secure.
The technology is being utilized to enhance smart payment systems, secure financial transactions, advance shipping and transportation, modernize government agencies and institutions, and even detect critical illnesses. It provides protection against identity theft as well as piracy.
NVIDIA (NVDA - Free Report) , through its graphics processing units (GPUs), provides the computational power required for developing blockchain.
NVIDIA is benefiting from strong demand for mining cryptocurrencies. NVIDIA has launched Cryptocurrency Mining Processor (CMP), a product line for professional mining. CMPs enable improved airflow while mining and also have a lower peak core voltage and frequency, which improve mining power efficiency. NVIDIA has generated revenues worth $526 million from the product line since its availability.
The Zacks Consensus Estimate for its fiscal 2022 earnings stands at $4.33 per share, having moved 4.6% north over the past 60 days. The same for revenues is pegged at $26.69 billion, indicating 60% growth from the figure reported in fiscal 2021.
NVIDIA’s shares are up 132.3% year to date.
Microsoft’s (MSFT - Free Report) endeavors with blockchain technology are noteworthy. In March 2021, Microsoft’s Decentralized Identity team launched the ION Decentralized Identifier (DID) network on the Bitcoin mainnet. The network uses bitcoin’s blockchain to create digital IDs for authenticating identity online.
Microsoft is expanding its blockchain team, according to Director of Strategy and Transformation, Blockchain, and Cloud Hardware Supply Chain Yorke Rhodes. Microsoft has shown keen interest in digital assets like decentralized finances and non-fungible tokens.
Microsoft’s blockchain endeavors are also expected to help it gain a footprint in the metaverse.
The Zacks Consensus Estimate for its fiscal 2022 earnings has been revised upward by a penny to $9.13 per share in the past 60 days. The consensus estimate for revenues is pegged at $194.98 billion, indicating 16% growth from the figure reported in fiscal 2021.
Microsoft’s shares are up 53.4% year to date.
Accenture (ACN - Free Report) has been a dominating name in the blockchain space, thanks to its domain expertise in financial services.
Accenture is using blockchain to create smart digital contracts. Accenture Blockchain for Contracts takes existing paper contracts and puts them on a shared blockchain database that every designated party can use to securely view contracts, revise and accept changes, all captured on the blockchain ledger.
Accenture believes that a combination of artificial intelligence and blockchain can bring the fourth industrial revolution by reinventing economics and information exchange.
The Zacks Consensus Estimate for its fiscal 2022 earnings has been revised 4.2% upward to $10.54 per share in the past 60 days. The consensus estimate for revenues is pegged at $59.85 billion, indicating 18.4% growth from the figure reported in fiscal 2021.
Accenture’s shares are up 59% year to date.
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3 Blockchain Stocks Poised for Big Returns in 2022
Blockchain technology has come to the forefront in 2021, thanks to the growing acceptance of cryptocurrencies. However, this is not the only factor driving demand for this dynamic technology.
Blockchain has helped enterprises and government agencies tackle prominent issues, including data tracing, security, visibility and management, and supply-chain supervision.
Blockchain is an electronic distributed ledger. It is relatively faster in closing a transaction as the need for manual processing and authentication by intermediaries is eliminated as it deploys a distributed consensus.
Moreover, as blockchain uses distributed consensus, it isn't easy to alter data on the system without alerting the entire network. This makes the system enormously secure.
The technology is being utilized to enhance smart payment systems, secure financial transactions, advance shipping and transportation, modernize government agencies and institutions, and even detect critical illnesses. It provides protection against identity theft as well as piracy.
Per Forbes, spending on blockchain solutions by businesses is expected to hit $11.7 billion during 2022. According to PwC, blockchain has the “potential to add $1.76 trillion to the global economy by 2030.”
Here we discuss three stocks that are well-poised to gain from the growth opportunities presented by blockchain’s growing prominence. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Top Picks
NVIDIA (NVDA - Free Report) , through its graphics processing units (GPUs), provides the computational power required for developing blockchain.
NVIDIA is benefiting from strong demand for mining cryptocurrencies. NVIDIA has launched Cryptocurrency Mining Processor (CMP), a product line for professional mining. CMPs enable improved airflow while mining and also have a lower peak core voltage and frequency, which improve mining power efficiency. NVIDIA has generated revenues worth $526 million from the product line since its availability.
The Zacks Consensus Estimate for its fiscal 2022 earnings stands at $4.33 per share, having moved 4.6% north over the past 60 days. The same for revenues is pegged at $26.69 billion, indicating 60% growth from the figure reported in fiscal 2021.
NVIDIA’s shares are up 132.3% year to date.
Microsoft’s (MSFT - Free Report) endeavors with blockchain technology are noteworthy. In March 2021, Microsoft’s Decentralized Identity team launched the ION Decentralized Identifier (DID) network on the Bitcoin mainnet. The network uses bitcoin’s blockchain to create digital IDs for authenticating identity online.
Microsoft is expanding its blockchain team, according to Director of Strategy and Transformation, Blockchain, and Cloud Hardware Supply Chain Yorke Rhodes. Microsoft has shown keen interest in digital assets like decentralized finances and non-fungible tokens.
Microsoft’s blockchain endeavors are also expected to help it gain a footprint in the metaverse.
The Zacks Consensus Estimate for its fiscal 2022 earnings has been revised upward by a penny to $9.13 per share in the past 60 days. The consensus estimate for revenues is pegged at $194.98 billion, indicating 16% growth from the figure reported in fiscal 2021.
Microsoft’s shares are up 53.4% year to date.
Accenture (ACN - Free Report) has been a dominating name in the blockchain space, thanks to its domain expertise in financial services.
Accenture is using blockchain to create smart digital contracts. Accenture Blockchain for Contracts takes existing paper contracts and puts them on a shared blockchain database that every designated party can use to securely view contracts, revise and accept changes, all captured on the blockchain ledger.
Accenture believes that a combination of artificial intelligence and blockchain can bring the fourth industrial revolution by reinventing economics and information exchange.
The Zacks Consensus Estimate for its fiscal 2022 earnings has been revised 4.2% upward to $10.54 per share in the past 60 days. The consensus estimate for revenues is pegged at $59.85 billion, indicating 18.4% growth from the figure reported in fiscal 2021.
Accenture’s shares are up 59% year to date.