Big tech stocks are all investing heavily in VR technology.
Virtual reality technology may not have progressed as quickly as VR enthusiasts had hoped. But VR tech is still one of the largest potential long-term growth opportunities in the market today. The global VR market is expected to grow 19% annually, reaching $26.8 billion by 2027 from $7.7 billion in 2020, according to market research firm Valuates Reports. The gaming industry and the metaverse — integrated virtual online environments in which people live, work and play — are two popular trends driving that impressive VR growth. While there aren’t any VR pure-play stocks, nearly all the major tech leaders are investing in VR technology. Here are seven of the best VR stocks to buy today.
Meta Platforms Inc. (ticker: FB)
Meta Platforms is the parent company of social media platforms Facebook and Instagram, but it is also the owner of leading VR platform Oculus. Meta devices now reportedly account for about two-thirds of all VR hardware used on the popular Steam gaming platform, demonstrating Oculus’ dominance in the space. The Oculus Quest 2 is currently the most popular VR gaming headset. Facebook recently changed its corporate name to Meta as it pushes to pioneer the metaverse. FB stock is down about 50% in the past six months, potentially providing an excellent buying opportunity in the leading VR stock.
Sony Group Corp. (SONY)
Sony released its original PlayStation VR headset back in 2016, and the headset went on to become one of the bestselling products in the category. In January, Sony unveiled its next-generation virtual reality headset, the PSVR2. Sony said the new headset and VR2 Sense controllers will have increased visual fidelity, head and eye tracking and built-in vibration feedback. Horizon Call of the Mountain will be one of the first VR games to demonstrate the updated capabilities of the PSVR2. The game was developed by Sony subsidiary Guerrilla Games. In addition to gaming, Sony is also developing VR technology that will have a wide range of applications, including collaborative work, medical imaging and industrial manufacturing.
Microsoft Corp. (MSFT)
While Meta and Sony focus on VR fun and games, Microsoft is taking a different approach with its VR technology, focusing on enterprise and military applications. In March 2021, Microsoft announced a five-year deal worth up to $21.9 billion with the U.S. Army to supply Microsoft’s HoloLens headsets to the military. In 2022, Microsoft plans to roll out a VR-enhanced feature for its remote enterprise collaboration platform Teams, which will bring collaborative 3D experience capabilities to the software. Microsoft has said the product, called Mesh for Teams, is a “gateway” to the professional metaverse, making online meetings more personal and engaging by integrating augmented reality and VR features.
YouTube and Google parent company Alphabet’s first attempt at a wearable augmented-reality, or AR, device was Google Glass, which was originally released back in 2013. Glass was somewhat underwhelming, but the company is reportedly developing a new AR headset with an eye on a potential 2024 launch date. In recent years, Google has also invested heavily in its visual search engine Lens and added AR features to Google Maps. In 2021, Google unveiled its Project Starline, a next-generation 3D video chat booth that reportedly uses a dozen depth sensors and light field technology to make video chat partners appear in 3D.
Apple Inc. (AAPL)
For years, there have been reports that iPhone maker Apple is developing an AR or VR headset. Apple was reportedly hoping to begin shipping that device in 2022, but recent reports suggest that launch date may be pushed back to at least 2023 after reports of problems with overheating, cameras and software. The price point for the device is expected to be more than $2,000, and it will reportedly have two processors. Apple has a long track record of disrupting existing markets with its high-quality devices, and it already has a massive base of more than 1 billion active iPhones.
Unity Software Inc. (U)
Unity Software owns one of the two main 3D video game engines. If the metaverse is in fact the next generation of the internet, Unity may be the main company that helps people and businesses build unique VR presences in the metaverse — the equivalent of websites or social media pages today. Unity’s VR engine allows users to create apps, games and industrial programs for all the major VR headsets. Features such as High Definition Render Pipeline for VR, XR Interaction Toolkit and Particle System allow developers to produce stunning VR graphics, breathe life into VR interactions and add a wide range of shapes, sizes, textures and other effects to their VR creations.
Nvidia Corp. (NVDA)
Nvidia produces the graphics and video processing chips used in high-end servers, supercomputers, and artificial intelligence and VR applications. Realistic VR experiences require a massive amount of processing power, and Nvidia chips play a critical role. Nvidia CloudXR delivers VR and AR features across 5G and Wi-Fi networks. The company’s Nvidia Turing graphics processing units, drivers and software development kits help professionals, gamers and developers meet their VR needs. In November, Nvidia announced new AR and VR features for its Omniverse, the company’s simulation and collaboration platform that it refers to as the “metaverse for engineers.” More than 700 companies and 70,000 individual creators are already using the Omniverse to replicate real-world environments in the virtual world.
7 top virtual reality stocks to watch in 2022:
— Meta Platforms Inc. (FB)
— Sony Group Corp. (SONY)
— Microsoft Corp. (MSFT)
— Alphabet Inc. (GOOG, GOOGL)
— Apple Inc. (AAPL)
— Unity Software Inc. (U)
— Nvidia Corp. (NVDA)
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7 Top Virtual Reality Stocks to Watch in 2022 originally appeared on usnews.com
Update 03/16/22: This story was published at an earlier date and has been updated with new information.
