The recent comments by Federal Reserve chair Jerome Powell have investors dreaming of potential rate cuts. If you’re looking to deploy some capital in the market, meme stocks could be a promising option. There are several meme stocks worth considering that are poised for significant growth.

While some stocks are cheap for a reason, many meme stocks offer unique opportunities. When combined with potential revenue and earnings growth, and positive analyst sentiment, these meme stocks can become attractive investments for retail traders and investors.

There are a lot of poor meme stocks. However, I feel that several standout performers have the potential to deliver substantial returns. These stocks have demonstrated resilience and growth potential, making them worthy of consideration for any investor.

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So here are three of the best meme stocks worth owning and buying in May this year. Grab them before they set off to new heights.

Advanced Micro Devices (AMD)

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Advanced Micro Devices (NYSE:AMD) reported robust financial results for Q1 2024, with revenue reaching $5.5 billion, representing a 2% year-over-year growth. The company achieved a non-GAAP gross margin of 52%, up from 50% the previous year.

Furthermore, AMD has increased its addressable market forecast significantly. The company now expects the AI accelerator market to grow to $400 billion by 2027, nearly 300% growth from current levels.

For Q2 2024, AMD anticipates revenue to be approximately $5.7 billion, reflecting a year-over-year growth of around 6%.

I think that semiconductor stocks like AMD will become some of the most valuable on the planet, and this is reflecting its valuation. The company has a forward PE ratio of 39.84, a PEG ratio of 0.66, and an EV/EBITDA ratio of 63.34. These ratios indicate that AMD is trading at a premium but is considered undervalued relative to its growth prospects.

Coinbase (COIN)

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Coinbase (NASDAQ:COIN) is a cryptocurrency exchange platform that has seen significant growth due to the increasing adoption of digital currencies. It continues to be a focal point for crypto enthusiasts, especially as Bitcoin (BTC-USD) continues to go on a bender this year following the halving event in April.

The company’s net income for the previous quarter was $210 million, compared to a net loss of $557 million in the same period last year. The adjusted EBITDA for Q1 2024 was $402 million.

Furthermore, the company’s user base has expanded to 110 million verified users on its platform, and the rising short-term volatility in Bitcoin’s price can only be a good thing for COIN.

A more volatile market means more potential trades for investors, and more trading fees for COIN. Furthermore, Coinbase has diversified its revenue streams beyond trading fees, including subscription services, staking rewards, and custodial fees. This diversification helps stabilize revenue and reduce dependency on trading volumes.

I expect COIN to have a record year in 2024.

Microstrategy (MSTR)

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Microstrategy (NASDAQ:MSTR) has positioned itself uniquely as both a business intelligence company and a major holder of Bitcoin. As of Q1 2024, the company holds 214,400 bitcoins, acquired at an aggregate cost of $7.54 billion, or approximately $35,180 per bitcoin. This large holding positions MicroStrategy to benefit significantly from any appreciation in Bitcoin prices.

For Q1 2024, MicroStrategy reported total revenues of $115.2 million, with subscription services revenues up by 22% year-over-year. While overall revenue saw a slight decline of 5.5% from the previous year, the company’s focus on subscription and product support services has helped stabilize its financial performance.

The company issued $800 million of 0.625% Convertible Senior Notes due 2030 and $603.8 million of 0.875% Convertible Senior Notes due 2031. These notes provide low-cost capital that can be converted into equity.

I expect that MSTR’s book value will skyrocket this year and continue for the foreseeable future due to the huge amount of Bitcoin on its balance sheet. Not only would this signal that it’s potentially undervalued based on this metric, but it could sell some of its holdings to further its efforts in expanding subscription revenue.

On the date of publication, Matthew Farley did not have (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.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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