The Metaverse is arguably one of the most important technological innovations of our generation. This new technology is certainly still far from being adopted on a large scale. Yet investors are already looking for investment opportunities in this interconnected and entirely new digital landscape, says Rebecca Barnatt-Smith.
The enormous amount of computing power required to run the metaverse, and its reliance on virtual and augmented reality, has created opportunities for many companies, but also for investors.
Without further ado, let’s take a look at the five most promising metaverse stocks and see why they could rise in the coming years.
1- Nvidia (NASDAQ: NVDA)
Let’s start with this company that could play a key role in the development of the metaverse. With its graphics cards and its data centers, Nvidia could provide all the computing power necessary for the functioning of the metaverse. By having enough computing power, users will be able to interact with each other in a vast virtual environment.
Another important point, Nvidia has already put its graphics cards at the service of the Research SuperCluster (RSC), the Meta supercomputer. In fact, the company aims to absorb much of the demand for computing power from metaverse platforms.
After a strong rally in 2021, NVDA stock tumbled in the second quarter of 2022. Recently, the stock has rallied, showing that investor confidence remains strong.
The company also has a close relationship with Meta, which is considered one of the pioneers of the metaverse. In fact, Nvidia derives its strength from its ability to meet the needs of users in the new web3 ecosystem. According to Intel’s estimates, the metaverse would require a 1,000x increase in the computing power used today.
The development of the metaverse thus represents a golden opportunity for Nvidia, which is one of the largest providers of computing power in the world.
2- Unity Software (NYSE: U)
Like Nvidia, Unity Software should be a major player in the metaverse. The company helps game developers create high-quality graphical content that is compatible with multiple platforms. Likewise, its services can be used on computers, smartphones, game consoles or VR hardware.
By the end of 2021, Unity had a 61% share of the gaming market. Hence the incredible performance of the stock over the past year. That said, Unity hasn’t been immune to the current tech stock crisis. But his foray into the gaming sector is likely to make him one of the pioneers of web3.
Unity Software software is estimated to have contributed to the development of over 60% of the 3D content available worldwide. In fact, the solutions offered by the company help not only game designers, but also metaverse development studios like BORN.
To create new metaverses, Unity works on several platforms, such as Insomniac Events. In addition, some prominent tech figures, such as Microsoft CEO Satya Nadella, believe that “the metaverse is fundamentally about creating games.” Everything therefore indicates that Unity software is going to play a central role in the development of the new virtual world.
3- Roblox (NYSE: RBLX)
Roblox is one of the very first companies to set foot in the metaverse. As a game studio, social network and content creation platform, the company encompasses several elements of today’s metaverse. At the 2021 IPO, Roblox stock reached a capitalization of $41.9 billion, meaning the company is already appealing to Wall Street traders.
Over the years, Roblox has become a top entertainment center. The company has even collaborated with some of the biggest artists in the world, including Lil Nas X, David Guetta and many more. As of this writing, Roblox has over 24 million 3D experiences for users to engage with.
Considering its financial results, it goes without saying that the company is developing at high speed. As of Q4 2021, Roblox had approximately 49 million daily active users, a 33% increase over the same period last year. If the platform manages to maintain its growth rate, it could become one of the largest metaverses in the world.
4- Snap (NYSE: SNAP)
Formerly known as Snapchat, Snap is considered one of the largest social networks in the world. But over the past few years, the company has made great strides in augmented reality.
In fact, the company’s investments in augmented reality have boosted growth significantly. Since augmented reality will be an integral part of the metaverse, Snap can play a key role in its development.
Although SNAP stock is not immune to the current crisis, 250 million of the company’s users used its AR tools in the first quarter of 2022. In addition to its famous lens tool, the company will soon launch unique AR glasses that can attract a large number of metaverse users.
5- Microsoft (NASDAQ: MSFT)
While its counterparts are struggling to recover, Microsoft’s MSFT stock is maintaining a very satisfactory performance. Although the MSFT share price remains relatively high, Microsoft has proven time and time again that it has no problem keeping up with new innovations.
In early 2022, Microsoft announced the purchase of Activision Blizzard, a major gaming company, for a whopping $70 billion. As a result, Microsoft now owns Activision’s most popular games, including “Call of Duty.” In addition, the company will be able to promote its services to the 390 million monthly users.
In fact, Microsoft considers games to be an integral part of the evolution of the metaverse. With the acquisition of Activision Blizzard, the company can become a leader in metaverse games.
In addition, Microsoft is also looking to use its HoloLens as a way to create mixed reality spaces for teams. The company has a rich history of innovation, and it looks set to become central to the evolution of the metaverse.
metaverse stocks: tips for investors
To choose the right metaverse stocks, investors must conduct ongoing research and analysis. The industry is still in its infancy, which means things can change very quickly.
It should therefore be kept in mind that nothing guarantees the success of a metaverse action in the long term. But with a little research and learning, investors can better pick the most promising metaverse stocks.
About the author
freelance journalist, Rebecca Barnatt-Smith is also a specialist in multimedia marketing. She has a special interest in the metaverse and its investment opportunities. She also covers topics related to technology, the future of crypto trading and NFT trends.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at the reader’s own risk.