The metaverse may feel far off, but investors may want to pay close attention to what some of the world's leading technology companies are doing in this space. That's because the metaverse will be worth an estimated $679 billion by 2030.
Amazon (AMZN 0.78%), Apple (AAPL -1.02%), and Nvidia (NVDA 3.62%) are poised to benefit from it as it grows. Here's why buying these companies now could give you great exposure to the coming metaverse.
Image source: Getty Images.
1. Amazon
Amazon may seem like an odd choice on this list, but the virtual worlds will require lots of cloud computing power, and Amazon Web Services (AWS) has it in spades.
The company has the largest cloud computing market share, with about 34% right now, giving it a firm lead over its closest rival, Microsoft, which holds 21% of the market.
AWS has become a juggernaut of a business for Amazon, with revenue reaching $80 billion in 2022, up 29% from the previous year. Even better news for Amazon investors is the fact that AWS is highly profitable. The cloud segment had $22.8 billion in operating income for the full year.
As the metaverse grows, Amazon's leading position in the cloud could grow right along with it. And with AWS being a profitable powerhouse for the company, investors will want to keep a close eye on this space.
2. Apple
Apple is best known for its iPhones, but the company is looking beyond smartphones for its next big thing. Rumors have been swirling for a while that Apple is on the cusp of debuting a mixed-reality headset (augmented reality and virtual reality), and Bloomberg said recently that the device would likely debut this year.
This matters because Apple has a long history of entering new markets and creating demand for them, and no other company has arguably had the same success in pairing hardware and software together to create a winning product.
The metaverse could end up being a significant market worth waiting on for Apple investors. Counterpoint Research estimates that AR/VR headset sales could surpass 100 million headsets in 2025, up from 50 million this year.
Additionally, Apple could be a huge winner in the metaverse app space as well. The company has proven that it knows how to grow its services business, which includes sales through its App Store, with revenue in the segment reaching an all-time high of $20.8 billion.
Any new Apple headset will be paired with an online store with metaverse apps, giving the company even more opportunity to grow its services segment.
3. Nvidia
Nvidia's CEO, Jensen Huang, has called the metaverse the "next evolution of the internet," and the company is poised to benefit from it with its popular graphics processing units (GPUs). The company's chips are already a go-to choice in the gaming industry, making them an obvious choice for metaverse hardware as well.
Nvidia has already set up a platform for helping developers to create and operate their metaverse applications, and its GPUs will likely play a big role in metaverse cloud computing as well.
Nvidia's GPUs are used in high-powered data centers for tasks, including artificial intelligence processing, and as the metaverse grows, it is going to need plenty of these high-end data centers to keep it running smoothly.
Nvidia's data center segment sales increased 30% in the most recent quarter to $3.8 billion, and the company believes there's plenty more growth ahead. Huang believes that the metaverse will be a "new economy" that could surpass the size of the current economy. While that seems a bit overly optimistic, it's clear Nvidia's management is very bullish on the future of the metaverse.
Be patient with this space
Like any brand-new technology that's just getting started, it's going to take the metaverse a little while to find its footing. But investors who are looking to benefit from the potential growth of the metaverse over the next few years should give Amazon, Apple, and Nvidia strong consideration.
These companies are already making significant moves into this space and could prove to have an early start among their competitors.
