Virtual reality (VR) stocks are equity stakes in businesses that could make substantial contributions to the VR space. The concept of VR began decades ago. But real-world adoption has picked up steam in recent years.
VR is primarily used for gaming and entertainment right now, but there's great potential for the technology in several industries and professions, including engineering and design, healthcare, defense, and education.
Moreover, the VR trend could deliver substantial growth opportunities for investors over the next decade. Various research groups forecast a double-digit compound annual growth rate (CAGR) between 2026 and 2030 or beyond. For those looking to start investing in VR, here are seven of the best stocks to consider.
The best virtual reality stocks for 2026
| Company | Ticker | Market cap | Sector |
|---|---|---|---|
| Apple | NASDAQ:AAPL | $3.7 trillion | Information Technology |
| Sony Group | NYSE:SONY | $123.1 billion | Consumer Discretionary |
| Axon Enterprise | NASDAQ:AXON | $40.4 billion | Industrials |
| Qualcomm | NASDAQ:QCOM | $140.1 billion | Information Technology |
| Nvidia | NASDAQ:NVDA | $4.3 trillion | Information Technology |
| Unity Software | NYSE:U | $8.3 billion | Information Technology |
| Roblox | NYSE:RBLX | $40.8 billion | Communication Services |
1. Apple
NASDAQ: AAPL
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NYSE: SONY
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3. Axon Enterprise
NASDAQ: AXON
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NASDAQ: QCOM
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5. Nvidia
NASDAQ: NVDA
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NYSE: U
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NYSE: RBLX
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What to consider before investing in virtual reality stocks
Investors need to look not only at prevailing trends in VR, but they must also have an investment thesis for each VR stock they invest in. A thesis will examine the overall revenue growth of the business, not just the VR portion. It will also consider other factors such as profit margins and management.
Investors will also need to be realistic with their expectations regarding the adoption timeline of VR. Technologists have worked on VR for decades already, but there still isn't widespread adoption. In short, this space could take time to develop.
Benefits and risks of investing in virtual reality stocks
All investing trends have potential benefits as well as potential risks. That's why it's important to consider both sides. For example, a couple of benefits of VR stocks include:
- The technological step forward: Throughout history, technology has always moved forward. And VR holds great promise when it comes to social interaction, education, engineering, and more. Investing in technological progress is often a good idea.
- The growth: Along the same lines, revenue growth is one of the most important factors for investors to consider when buying stocks. As VR technology improves, it will almost certainly lead to growth opportunities for certain businesses, which could be good for those shareholders.
However, VR stocks could have a couple of risks as well, including:
- Overly optimistic expectations: While VR would appear to be the next wave of innovation, it's taken longer to develop than many pundits expected. And some incredibly promising VR hardware devices have ultimately failed to resonate with consumers. It's possible this space never develops as hoped, leading to poor stock performance as expectations meet reality.
- Questionable profits: Some companies are spending substantially on VR without making profits. VR ultimately needs to have an attractive return on investment if it's going to be rewarding for shareholders.
Emerging trends in the virtual reality industry
VR headsets have always been cumbersome. Many companies are working on smaller form factors. For example, the adoption of Meta's Ray-Ban Meta Glasses has been very promising.
Generative AI is another positive trend in the VR sector. Creating immersive experiences is labor-intensive -- there are a lot of things to make. However, generative AI applications have improved and can now quickly create content that can be consumed with VR devices. Having more experiences available is one trend that could boost long-term adoption.
Virtual reality versus augmented reality
Many of the aforementioned efforts in virtual reality are, in fact, augmented reality (AR). The key difference between VR and AR lies in the user's physical space. If the physical space is completely blocked out, it's VR. If the physical space is digitally enhanced, it's AR.
AR will likely be the more prevalent trend for the foreseeable future. Pure VR will likely struggle to gain traction until there is a broader range of haptic feedback devices that engage the user's senses. Only then will the experience be immersive enough to be widely adopted.
Adding virtual reality to your portfolio
There are several ways to invest in the future of virtual reality. From consumer hardware to enterprise computing and software companies to chipmakers, all present various opportunities to invest in this fast-growing industry.
The seven companies above represent just a handful at the top of the field. Many others are working to develop and further the adoption of VR, which should fuel growth across this fast-changing space.
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FAQ
Virtual reality stocks: FAQ
About the Author
Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise, Meta Platforms, Nvidia, Qualcomm, Roblox, and Unity Software. The Motley Fool has a disclosure policy.
