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 2025 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 stock contenders
| Company | Ticker | Market cap | Sector |
|---|---|---|---|
| Meta Platforms | NASDAQ:META | $1.7 trillion | Communication Services |
| Sony Group | NYSE:SONY | $169.1 billion | Consumer Discretionary |
| Axon Enterprise | NASDAQ:AXON | $43.4 billion | Industrials |
| Qualcomm | NASDAQ:QCOM | $186.7 billion | Information Technology |
| Nvidia | NASDAQ:NVDA | $4.5 trillion | Information Technology |
| Unity Software | NYSE:U | $18.9 billion | Information Technology |
| Roblox | NYSE:RBLX | $66.8 billion | Communication Services |
1. Meta Platforms
NASDAQ: META
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Meta Platforms (META +1.59%), formerly known as Facebook, acquired Oculus, a leading VR technology company, in 2014. It has since helped the company develop and market its virtual reality headsets and software. In 2017, CEO Mark Zuckerberg said he wanted to get 1 billion people using virtual reality.
The Meta Quest 3 is the latest iteration of its flagship product lineup. And Meta also has a partnership with EssilorLuxottica's (OTCMKTS:ESLOY) Ray-Ban brand of sunglasses. These Ray-Ban Meta glasses have been a surprise runaway hit for consumers who appreciate mixed-reality hardware options that are also stylish.
The company changed its name to Meta Platforms in late 2021 to emphasize its focus on building the infrastructure to support the metaverse. "We're focused on the foundational hardware and software that are required to build an immersive, embodied internet that enables better digital social experiences than anything that exists today," CEO Mark Zuckerberg said.
Given the CEO's excitement surrounding the potential of the metaverse, Meta will undoubtedly continue to invest in its suite of VR products, making it a good choice for investors interested in the trend.
2. Sony
NYSE: SONY
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3. Axon Enterprise
NASDAQ: AXON
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Axon Enterprise (AXON -0.10%) provides law-enforcement agencies with Tasers, body cameras, and cloud-based software. And it's been one of the greatest stock investments of the past decade. However, many investors are still unaware that the company is also an important player in the VR space.
The Axon Training Pod is a complete unit that allows agencies to get up and running quickly with VR training. Handheld VR Tasers coupled with VR headsets allow officers to train without using up pricey, physical cartridges. In addition to VR weapon training, Axon's solutions include a component for learning community engagement skills to de-escalate situations before resorting to the use of a Taser.
4. Qualcomm
NASDAQ: QCOM
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5. Nvidia
NASDAQ: NVDA
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Some of the companies on this list build and sell finished VR hardware products. However, companies that supply essential technology to hardware manufacturers are just as important. For this reason, Nvidia (NVDA -0.56%) is a top choice when it comes to VR stocks because it's the leading designer of graphics processing units (GPUs) for PCs and game consoles.
For more advanced VR applications -- not just video games -- Nvidia's VR-specific GeForce GTX GPUs are doing a lot of work. Developers can also use the company's software developer kit (SDK), called VRWorks. Whether it's for hardware or for applications, developers can use the SDK to make images, sounds, and touch interactions more realistic for the VR world.
Given the graphics-intensive nature of virtual reality, Nvidia is poised to benefit, regardless of which company's hardware winds up becoming the industry standard.
6. Unity Software
NYSE: U
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NYSE: RBLX
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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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How to invest in virtual reality stocks
For those who are excited about VR stocks and want to invest, here's a step-by-step breakdown for how to get started:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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