Stocks to buy

Investors are always searching for opportunities to yield handsome returns. As virtual reality technology evolves, it’s perhaps the best time to park your capital in some of the most promising virtual reality stocks. With the release of cheaper headsets and accessories, VR looks set to become part of our everyday lives within the next few years. In fact, according to Grand View Research, the VR market is expected to grow by 15% from 2022 to 2030. At the end of the current decade, the sector will bring in a whopping $87 billion. Hence, those looking to get in early have a window of opportunity that cannot be ignored.

MSFT Microsoft $258.06
AAPL Apple $152.55
MTTR Matterport $3.60
U Unity Software $39.67
META Meta Platforms $172.88
QCOM Qualcomm $127.72
TCEHY Tencent Holdings $47.20

Virtual Reality Stocks: Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) has become a staple within the global business ecosystem and boasts a significant stake in the VR race. Its efforts in the VR realm can be traced back to the days of Kinect, a motion-sensing device released in 2010 for its flagship video game console, the Xbox. Kinect set the stage for releasing the company’s mixed-reality headset, the HoloLens. Company sources revealed last year that it had sold 300,000 HoloLens units since its launch.

Moreover, Microsoft is also looking to marry its software suite with VR. It recently partnered with Meta to bring Teams, Windows, and Office to Meta’s Quest VR headsets. The partnership will allow both companies to benefit from each other’s strengths and advance their goals in VR and the metaverse.

Virtual Reality Stocks: Apple (AAPL)

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Apple (NASDAQ:AAPL) is one of the most iconic tech companies that has effectively shaped our world over the past decade or so. Not surprisingly, it’s been dabbling with augmented reality for a while now and will finally release its much-talked-about VR headset later this year. Though many would feel that it’s a bit late to the party, Apple’s stellar track record should be enough to hush up the naysayers. It’s repeatedly proven to be a money-minting machine, with products customers go crazy for.

Its VR headset has gone through multiple delays but will finally be released in June. Sales estimates are far-ranging, from 100,000 to over 1 million. Apple is bullish on the prospects of its headsets, expecting to sell 1 million in its first year. With estimates suggesting a price tag of $3,000, it could potentially translate into $3 billion in new sales.

Matterport (MTTR)

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Matterport (NASDAQ:MTTR) is a company changing how we interact with our environment and use data. Its technology captures and processes spatial data, creating realistic 3D models of real-world environments. This can be used in VR experiences, architecture design, construction planning, and more.

Matterport added a VR mode to its platform back in 2020, which allows access to higher visual quality, mobility, and the ability to view 360º Views of spaces included in a particular tour. Moreover, its VR technology is being leveraged by its partners, such as event planning company Allseated, to grow sales at an accelerated pace. Furthermore, the company’s operating results have been incredible of late, posting record revenue growth in its most recent quarter. Also, its subscription revenue improved by 21% in the third quarter, from record subscribers at 657,000.

Unity Software (U)

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Unity Software (NYSE:U)  is a pioneer in developing interactive 3D experiences, and its Unity Engine has become a staple in the gaming industry. Its capabilities are now extending into the world of VR, providing developers with the tools necessary for immersive projects and games. With Unity, VR developers can leverage strong technical capabilities and user-generated content features, which help form robust communities around projects. It is no wonder that Unity remains one of the most popular options for VR developers.

Unity’s Asset Store has taken an unprecedented approach to VR development for experienced VR professionals and newcomers. By providing a marketplace to obtain ready-made assets and offering up its community of developers and support from Unite events, Unity boasts a strong presence in the world of VR. Its ever-growing library of user-friendly tools makes things significantly more accessible for individuals with little or no prior experience.

Meta (META)

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Despite recent struggles, Meta (NASDAQ:META) will always be given in any virtual reality stocks to buy list. Last year’s market volatility caused over a 50% drop in its price, but it remains committed to becoming a leader in the metaverse and emerging connectivity. It boasts several products, including headsets, and accessories, positioning it as a leader in the VR space. Nevertheless, these investments come at a price. The company lost a whopping $13.7 billion on its Reality Labs segment, which is home to its VR and AR investments. The plan is to continue spending a boatload of money in realizing its metaverse dream.

Having said that, Meta has had success in its VR efforts, evidenced by strong sales from its Quest device and software sales. It has reportedly sold over 15 million Quest 2 headsets since its release in 2020. Moreover, Meta announced at the Connect conference late last year that $1.5 billion in content sales from its Meta’s Quest store were recorded since its launch in 2019.

Qualcomm (QCOM)

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Qualcomm (NASDAQ:QCOM) is an innovative powerhouse situated in sunny San Diego, California. Its impressive suite of products and services is revolutionizing how the world interacts with wireless technology, from essential 5G capabilities to prior-generation mobile communication standards.

The firm has been developing chipsets and platforms for mixed reality for over a decade. It developed Vuforia in 2012, one of the earliest AR platforms. Moreover, it played a major role in enabling smartphone VR solutions and popular VR headsets such as the Oculus Quest.

Likewise, the company developed its first mixed reality platform Snapdragon XR1 back in 2018. The platform aimed to reduce the costs of VR headsets and build a robust environment for immersive experiences. The following year, the XR2 platform was introduced with improved functionality and features. Most recently, it introduced a 5 G-enabled version of the XR2 to offer a platform supporting 5G, VR, AR, and AI. In advancing its efforts further in mixed reality, it built a massive $100 million Snapdragon Metaverse Fund last year.

Tencent (TCEHY)

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Despite recent market turbulence, Tencent (OTCMKTS:TCEHY) continues to hold its own against all odds. The Chinese-based tech and entertainment giant is one of the highest-grossing multimedia businesses worldwide, showing no signs of slowing down. With investments in online gaming, advertising, eCommerce, VR, and more, Tencent has diversified its presence across multiple industries. As a result of its extensive portfolio, Tencent stands as a behemoth in its sector, and it’s only a matter of time before the company reaches new heights.

Based on a Reuters report last year, Tencent plans to go in all-in to capitalize on the multi-billion dollar metaverse opportunity. In doing so, the firm has built an “extended reality” (XR) unit, which will focus on advancing its efforts in VR, AR, and the metaverse. The unit will be working on software and hardware, eventually having over 300 staff members.

Though the division has undergone a restructuring of late, I expect things to ramp up once the broader market conditions improve.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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