For speculators, that might be enough for consideration as one of the enticing virtual reality stocks. Their average price target stands at $11, implying 64% upside potential. If virtual reality and augmented reality take off, it will also likely create increased demand for related cloud-infrastructure services — which could be a significant positive catalyst for Microsoft’s Azure business. Azure is one of the leading cloud services platforms, and server-side computing could help reduce the hardware requirements needed to create VR and AR experiences and process data generated from devices and software applications. Investors seeking exposure to the rapidly expanding virtual reality (VR) market often turn to shares of companies specializing in VR technology.
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- Like other platform providers, Tencent’s offering could help pave the way for cloud-powered VR experiences and help process related data.
- In order to create an immersive experience, most non-phone VR applications render the image you’re seeing twice — once for each eye.
- Investors seeking to tap into the growing potential of VR technology often turn to publicly traded companies that develop or distribute VR hardware, software platforms, and immersive content.
- Google disabled support for the Daydream View headset with the introduction of its Pixel 4 phones, and many virtual-reality experts now believe that the days of the phone-powered VR experience is over.
For investors, diversified holdings across companies specializing in hardware manufacturing, software development platforms, retail distribution, and software engineering services may balance different risk-reward profiles. Hardware players like Meta are pushing innovation with integrated devices, while software providers like Unity empower content creators globally. Retailers such as Best Buy and GameStop facilitate consumer access, and service firms like EPAM support enterprise VR deployments.
- But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
- From social interaction platforms like Meta to development engines like Unity, and from retailers like Best Buy to adaptable services offered by EPAM, diverse opportunities exist within the VR stock landscape.
- Owning the biggest social media network in the world, Meta Platforms META would like to be known for more than its Facebook platform.
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In addition to designing VR-ready processors, Intel has also dabbled in VR device hardware. The company initially planned to release its own virtual-reality headset, dubbed “Project Alloy,” but the product never hit the market. Like other social networks, WeChat is primarily monetized through digital advertising, and the immersive potential of AR and VR suggests big potential in the ad space.
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Operationally, the company posts a three-year revenue growth rate of 22.9%, above 75.29% of its peers. Also, its free cash flow growth rate during the same period is 27.2%, above 64.34% of the competition. With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
Services
Virtual reality (VR) was once thought to be something of a technological holy grail — the type of tech that science-fiction plots revolved around and a subject that futurists and gadget enthusiasts opined about to great end. High-profile, exclusive video games are heading to VR, people are using panoramic cameras to create videos and photos for the format, and movie companies and platforms are providing ways to watch their content with headsets. And it’s not just video games and other forms of entertainment where the new display medium has big potential. VR could eventually bring about world-changing applications in fields like healthcare, manufacturing, and education. Meta Platforms, zSpace, The Glimpse Group, DIH Holding US, and DIH Holding US are the seven Virtual Reality stocks to watch today, according to MarketBeat’s stock screener tool.
Investors use the term to describe firms whose value is tied to the adoption and commercial success of immersive technology, often viewing them as growth or speculative plays sensitive to VR market trends and innovation cycles. These companies had the highest dollar trading volume of any Virtual Reality stocks within the last several days. Still, the VR market has huge potential, and virtual-reality headsets continue to offer better price-to-performance dynamics and an expanding range of compatible apps and content. The expanded reach of virtual reality technology is transforming industries including gaming, education, healthcare, entertainment, and enterprise solutions. Companies involved in creating VR hardware, software, or enabling services hold a strategic position in this growth trajectory. Investing in VR stocks offers a way to capitalize on the rise of immersive experiences, which are expected to become integrated into everyday consumer and professional applications.
This is a strong data point that showcases the company’s positioning in the VR space. As VR adoption grows, more developers will likely look to Unity’s image-creation tools when building quality VR content. Some of the companies on this list build and sell finished VR hardware products. However, companies that supply essential technology to hardware manufacturers are just as important. For this reason, Nvidia is a top choice when it comes to VR stocks because it’s the leading designer of graphics processing units (GPUs) for PCs and game consoles.
Unity Software
The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. If you’re looking to invest in virtual reality stocks, it’s important that you make your investment choices based on the overall company and not just the VR components of its business. That’s especially true when dealing with the mega-cap and large-cap stocks profiled on this list.
The company has developed games exclusively for VR platforms and built headset functionality into some of its titles, but its exposure to virtual reality in the gaming space extends beyond its own efforts. In addition to making its own video games, Tencent also owns substantial stakes in other large gaming companies — including Activision Blizzard, Glu Mobile, Ubisoft, and Epic Games — among many others. It also owns large stakes in gameplay streaming platforms Huya and Douyu, so it could benefit if VR sees increased adoption in that corner of the industry in addition to having plenty of potential with its own social media platforms. On the positive side, Unity features a three-year revenue growth rate of 23.6%.
Further, experts project that the industry will expand at a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030. By the culmination of the forecasted period, the segment should print revenue of $87 billion. Plus, with the tech fallout of 2022, several VR enterprises sit on a relative discount. If you’re the intrepid type, these are the immersive technology stocks to consider.
Promising Metaverse Stocks To Keep An Eye On
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he the 9 biggest virtual reality stocks has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. First, its Altman Z-Score hits double digits, indicating extremely low bankruptcy risk.
This trend is making the technology more accessible to a broader consumer base. The VR industry has metamorphosed the entertainment and gaming sector by allowing users to engage in a simulated environment. In addition, VR is also used in industries like healthcare and automotive due to its significant operational benefits. The following table breaks down the nine biggest publicly traded companies with stocks that can be purchased on U.S. exchanges or through over-the-counter trading by market capitalization that have significant exposure to the VR space.
Therefore, it could be one of the virtual reality stocks to buy for speculators. Their average price target stands at $41.90, implying over 54% upside potential. Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. Specifically, its cash-to-debt ratio pings at 308.1, ranked better than 85% of companies in the software industry.
In the trailing one-year period, it’s down 3%, offering a relative discount. On the financial side, Autodesk’s greatest strength stems from its profitability. Specifically, its net margin pings at 16.44%, above 88% of other companies listed in the software industry. There’s still excitement surrounding the immersive worlds made possible by head-mounted displays, but that “holy grail” status has lessened to a degree as the dream has moved closer to reality.