Virtual reality stocks are poised to grow with a booming market that is expected to grow to $245 billion by 2032. This statistic is fueled more by VR devices’ affordability and diverse industry applications.
These are the top 3 virtual reality stocks:
- Microsoft (MSFT): Anticipated release of Microsoft HoloLens 3 with modular design could revolutionize VR’s use in healthcare, industry, and entertainment sectors.
- Meta Platforms (META): The affordable range of Quest 2 makes it more accessible, driving broader adoption.
- Sony Group (SONY): The new PSVR2 adaptor, which works natively on PCs, expands its usability and market reach significantly.
With all the growth in ideas like the metaverse, virtual reality stocks are some of the most looked-after investment choices nowadays.
Considering a yearly growth of about 42%, the VR market size is expected to reach about $22.81 billion in 2024. It may also soar to $131.93 billion by 2029. Meanwhile, with a CAGR of 28.6% from 2024 to 2032, the market may reach $244.84 billion by 2032, according to Fortune Business Insights.
North America dominates VR stock markets with all the tech expenditures and advances by giants. Furthermore, government policies, 5G network improvements, and China’s immersive technology drive is also as important.
Given all the business opportunities, several big tech giants are also starting VR projects. For instance, Apple has improved its Vision Pro VR headset. Although the specifics and the release date are uncertain, Samsung and Alphabet’s Google may also bring their new XR/VR headgear later this year.
Now, let’s have a detailed look at three established virtual reality stocks.
Microsoft (MSFT)
Microsoft (NASDAQ: MSFT) may set to release a new HoloLens 3 with fresh patents revealing modular VR helmet designs. This type of design lets several pieces attach to the core helmet, which helps cut production costs. Hence, suggesting an eco-friendly VR device.
On the other hand, Microsoft Flight Simulator 2024 is set to debut in November. This new version is supposed to enhance threading for optimal performance.
Although updates and advancements are reducing, Microsoft will continue to support Windows Mixed Reality devices. Overall, Microsoft’s sales are going a healthy way, delivering a respectable earnings.
The company’s stock, MSFT, is trading at a great entry point which offers a potential upside of 22%.
Meta Platforms (META)
Meta Platforms (NASQAD: META) is taking a great measure to boost its profile among other virtual reality stocks by lowering Quest 2 prices. The 128GB Quest 2 starts at only $199 while the 256GB version costs $289. Thus, making VR more accessible to general public.
Starting from August, the Meta Quest VR headsets available in the USA and Canada will start getting upgrades with Meta’s AI helper. This will give users access to improved capabilities and more realism in virtual reality.
Meta keeps adding functionality to their Meta Quest headset to enhance their VR devices. A huge deployment has been scheduled in September.
The UploadVR Summer Showcase 2024 added many new VR games such as “Underworld Overseer,” “Smash Drums,” and “Ember Souls”. These games will be released in the year-end.
Meta has also introduced the “Segment Anything Model 2,” which helps locate items in photographs and videos. Another new addition is the “AI Studio” that lets non-programmers develop, share, and explore AI.
Meta already has an impressive portfolio full of products. However, new initiatives add more to it which help Meta beat earnings and revenue estimates in the Q2 2024. Still, the tech giant has a 10% upside to shares.
Sony Group (SONY)
Sony Group (NYSE: SONY) released a new adaptor to let PlayStationVR2 run on PCs, offering a major upgrade. Starting from August 7, this feature will allow PSVR2 users to play VR games on Steam. The company has also improved its tool’s versatility to compete with standalone headsets such as Meta Quest 3 and Apple Vision Pro.
During the “Beyond The Screen” promotion, Sony Pictures introduced Torchlight. It’s a powerful visualizing tool. Additionally, a new 4K OLED microdisplay were introduced for AR and VR headsets.
On another note, Sony Group and Apollo Global Management reportedly offered $26 billion to buy Paramount. In this deal, Sony will have control over the majority. However, this isn’t new to Sony.
This year, the shares are down by 9%. Still, it’s a gem in virtual reality stocks with a potential upside of 27%.