This list of virtual reality stocks includes companies that grew revenues in the last quarter and are trading at steep discounts to their 52-week highs.
Investors are always looking for the next great area to park their capital, and virtual reality stocks are the perfect opportunity. While virtual reality technology is still in its infancy, it has already begun to make waves in the gaming and entertainment industries. And with the release of affordable VR headsets, it is only a matter of time before virtual reality goes mainstream.
Virtual reality presents an early opportunity for investors to get in on the ground floor of potentially transformational technology. The VR market is highly competitive, and companies must invest significantly to stay ahead of the curve. Moreover, it is still unclear how consumers will ultimately use virtual reality. Investing in VR can be a risky business. However, investing in VR can lead to increased returns for those with higher risk tolerance.
As a result, stocks in the virtual reality industry are attracting a lot of attention from investors. The following list is curated with companies with strong growth prospects. It has seen revenues increasing in the last quarter despite a troubling environment and dipping about 10% this year — making them great discount plays too.
Microsoft (NASDAQ:MSFT) is a tech giant with diverse products and a varied business model. The company has several revenue streams, including product sales, subscriptions, advertising and licensing. Microsoft also offers cloud services, which are becoming increasingly popular. The company has a strong presence in the enterprise market, but it also targets consumers with its Microsoft 365 subscription service. Billions of people worldwide use Microsoft’s products, and the company consistently innovates to stay ahead of the competition.
Microsoft announced that it is expanding into a new sector by planting its roots in the metaverse. With a $68.7 billion purchase of Activision Blizzard (NASDAQ:ATVI) expected to be finalized in June 2023, Microsoft seems to be making its intention obvious about wanting to compete in the VR sector. It already has Hololens 2 and its new mixed reality platform, Microsoft Mesh, makes it easier for people to collaborate.
In its latest quarterly results, Microsoft reported revenues of $51.87 billion, a rise of 12% year over year. Net income rose 2% to $16.74 billion. Microsoft expects to earn between $49.2 billion and $50.2 billion in the fiscal first quarter.
Nvidia (NASDAQ:NVDA) is a tech company that is best known for its GPUs. Nvidia has not just been successful with video games; it now has a new division specializing in data centers and artificial intelligence.
The company’s GPU market share is considerably higher than competitor Advanced Micro Devices (NASDAQ:AMD), currently at 78%. Nvidia’s GPUs serve multiple segments, including gaming and professional visualization. In recent years, Nvidia has also become a leading player in artificial intelligence and autonomous vehicles.
Nvidia has also developed the Omniverse, a VR ecosystem that includes the metaverse and other VR platforms. The Omniverse allows users to share and collaborate on virtual worlds. Nvidia’s VR products are some of the most advanced and innovative on the market, and the company is poised to take advantage of the growing popularity of VR technology.
WiMi Hologram Cloud (WIMI)
WiMi Hologram Cloud (NASDAQ: WIMI) is an industry leader in AI vision and has been at the forefront of holographic AR technology research for many years. The company is also a leading provider of integrated holographic solutions. It also has leading technology reserves in the fields of holographic AR, 5G, artificial intelligence, arithmetic algorithms, digital twin, and virtual human.
In the past two years, the company has released a number of metaverse VR/AR/XR products, laying the foundation for the metaverse hardware market. In the meantime, WiMi has also accumulated various metaverse technology core capabilities, including AI computing, digital twin, simulation, AI vision, etc., further expanding its market influence through metaverse.
The stock’s P/S valuation is currently well below that of other metaverse stocks, but this suggests that WiMi’s share price is barely in a bubble. Meanwhile, the average 12-month forward price target is $7.
Unity Software (U)
Unity Software (NYSE:U) is best known for its Unity Engine, a powerful tool used by game developers to create immersive 3D experiences. However, Unity is also becoming increasingly popular in virtual reality, with many developers using it to create innovative new VR games and experiences. In addition to its technical capabilities, Unity has another key advantage for VR developers: its ability to build communities with user-generated content.
Unity’s Asset Store is a marketplace where developers can buy and sell VR assets, and its monthly Unite conferences bring together VR professionals from all over the world. As VR becomes more mainstream, Unity is poised to play a key role in its development. Thanks to its user-friendly tools and strong community support, Unity is helping to make VR accessible to everyone.