The metaverse is undoubtedly one of the most important technological innovations of our generation. Certainly, this emerging technology is far from being widely adopted. Yet investors are already looking for investment opportunities in this interconnected and totally new digital landscape, says Rebecca Barnatt-Smith.
The sheer amount of computing power required to run the metaverse, and its reliance on virtual and augmented reality, has created opportunities for many companies, as well as 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 needed for the metaverse to function. By having sufficient computing power, users can communicate with each other in a vast virtual environment.
Another important point is that Nvidia has already put its graphics cards in the service of Research SuperCluster (RSC), the Meta supercomputer. Indeed, the company wants to absorb much of the demand for computing power from metaverse platforms.
After a sharp rise in 2021, NVDA stock plummeted in the second quarter of 2022. Recently, the stock has risen, 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. Indeed, Nvidia draws its strength from its ability to meet the needs of users in the emerging web3 ecosystem. According to Intel’s estimates, the metaverse would require 1000x greater 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.
Unity had a 61% share of the gaming market at the end of 2021. Hence the incredible performance of its share over the past year. That said, Unity has not 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 more than 60% of the 3D content available worldwide. The solutions offered by the company help not only game designers but also metaverse development studios such as BORN.
To create new metaverses, Unity works across platforms, such as Insomniac Events. In addition, some prominent tech figures, such as Microsoft CEO Satya Nadella, believe that the “metaverse is basically making games”. Everything points to the fact that Unity software will 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 its IPO in 2021, Roblox’s stock hit a capitalization of $41.9 billion, meaning the company is already attractive 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. At the time of writing, Roblox has over 24 million 3D experiences for users to participate in.
Given the financial results, it goes without saying that the company is evolving at a rapid pace. As of the fourth quarter of 2021, Roblox had approximately 49 million daily active users, up 33% from 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 in recent years, the company has made great strides in augmented reality.
Indeed, the company’s investments in augmented reality have significantly boosted growth. Since augmented reality will be an integral part of the metaverse, Snap could play a key role in its development.
While SNAP stock is not immune to the current crisis, the company’s 250 million users were using its AR tools in the first quarter of 2022. In addition to its famous Lenses tool, the company will soon be launching unique AR glasses that will cover a wide range of users. number of people it could attract. from metaverse users.
5- Microsoft (NASDAQ: MSFT)
While its counterparts struggle to recover, Microsoft’s MSFT stock continues to deliver a very satisfying performance. While the MSFT stock price remains relatively high, Microsoft has proven time and again that it has no trouble keeping up with new innovations.
In early 2022, Microsoft announced the acquisition 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 its 390 million monthly users.
Indeed, Microsoft considers gaming an integral part of the development of the metaverse. With the acquisition of Activision Blizzard, the company could become a leader in metaverse games.
In addition, Microsoft wants 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 like this will be central to the metaverse development.
metaverse stocks: tips for investors
To pick the right metaverse stocks, investors need to conduct ongoing research and analysis. The industry is still in its infancy, so things can change very quickly.
So it must be borne in mind that nothing guarantees the long-term success of a metaverse action. However, 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 particular interest in the metaverse and its investment opportunities. She also covers topics related to technology, the future of crypto trading and NFT trends.
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