Zcash and Solana Outshine AI Stocks Amid High Multiples
Artificial intelligence (AI) stocks have been trading at a premium for months, with Arm Holdings reaching 120 times forward earnings by September 18. This high multiple is based on the assumption that AI companies will continue to invest heavily in data centers to train and run their large language models.
However, investors who prefer less expensive assets may want to consider two cryptocurrencies: Zcash (ZEC) and Solana (SOL). Both of these coins have shown significant growth potential.
Zcash is a privacy coin that allows users to keep key details about transactions private. It has recently gained traction with the introduction of a feature that enables selective disclosure of information, which has enabled it to gain acceptance in regulated assets. A spot Zcash exchange-traded fund (ETF) has over $500 million in assets, and Cypherpunk Technologies holds 1.9% of the coin's circulating supply.
Investors do not need to bet on computing power remaining scarce forever for Zcash to succeed, unlike with AI stocks.