You're probably busy sifting through the number of artificial intelligence (AI) stocks that seem to dominate every "Top Stocks to Buy" list this year. The introduction of ChatGPT started a trend that can't be ignored. From your investing club to the water cooler at work, everyone is thinking and talking about AI these days.
But what if you could hit two birds with one stone? Let's not forget about the metaverse, yesteryear's hot game-changer, now sliding below the radar in the AI-obsessed world of 2023. As it turns out, the worlds of AI and the metaverse often collide, offering investment opportunities that pack a one-two punch. For a few standout companies, the metaverse isn't just a side gig -- it's a core part of their long-term business plans, dovetailing nicely with their headline-stealing AI ventures.
While I don't condone attacking any number of actual birds with stones, I can help you find some great stocks whose metaverse ambitions are flying under the AI-focused radar today. And the top name on that list is a tech juggernaut with deep hooks into the AI industry -- and a surprisingly deep engagement with virtual worlds and metaverse concepts.
Windows to the digital world
I'm talking about Microsoft (MSFT 1.82%), of course -- the creators of Clippy, the once-annoying but now nostalgic paperclip that "helped" you format your Word documents, whether you wanted it to or not. Today, the same company is shaping up to be a key player in both artificial intelligence and the metaverse. They grow up so fast, don't they?
Microsoft has been quietly seeding the clouds of the metaverse with its HoloLens virtual reality technology. Think of HoloLens as a pair of goggles that lets you blend the real world with holograms. We're not talking about catching Pokémon in your living room; we're talking about engineers virtually walking through a 3D model of a jet engine to find design flaws. This is serious metaversal business, my friends.
You might be thinking: "That's all well and good, but what's the point?" Well, let's talk about Microsoft's recent $69 billion acquisition of Activision Blizzard. This isn't just about getting your hands on the Call of Duty or World of Warcraft game franchises. This buyout also sets the stage for Microsoft to leverage Activision's gaming community and creative firepower to build out an expansive metaverse. Suddenly, Microsoft isn't just in the game; it's designing the whole playground, populated by the digital casts of Crash Bandicoot and Skylanders -- not to mention Microsoft's own Minecraft, Halo, and Gears of War titles.
Imagine a World of Warcraft-style adventure you can step into via HoloLens, or a virtual business meeting in a Call of Duty setting. Microsoft will most certainly go there, expanding the HoloLens beyond its current business-service focus to address consumers in a big way. This, in my opinion, may have been the main reason why Microsoft fought so hard to close the big-ticket Activision deal.
Microsoft: A great metaverse investment that also does some AI stuff
So when you consider Microsoft as a potential investment, you're not just buying into a tech giant with a solid foundation. You're investing in a company that's serious about building and owning substantial parts of the metaverse. You will find plenty of AI-powered features and experiences in Microsoft's virtual worlds, of course. But in the long run, AI may very well turn out to be a side dish to Microsoft's metaverse entree.
Microsoft is laying down the virtual bricks for a pretty impressive digital kingdom. So even if you're not overly impressed by Microsoft's collaboration-based AI efforts, you might want to own the stock for its future metaverse prospects. It isn't cheap, but it could be worth every penny as the combined benefits of AI and the metaverse play out.
