Virtual reality (VR), augmented reality (AR), the metaverse, and all the sorts have been intriguing technological trends that excited many investors last year. Though most of the hype has died down and valuations have contracted, such themes are not going anywhere. In fact, it may be wise to reconsider many of the fallen VR/AR stocks before they have a chance to heat up again.
Understandably, investors have soured on technology stocks, with rates poised to rise quickly. Inflation continues to linger, and a recession could easily curb demand for discretionary goods like mixed-reality headsets and all hardware needed to get into the metaverse.
Further, nobody is really sure when the metaverse will be ready for prime time. Mark Zuckerberg thinks the metaverse represents a multi-billion-dollar opportunity. He may very well be right. However, the timeline is less certain.
In an era of COVID-19 and Monkeypox, which was recently declared a global health emergency, the metaverse as Zuckerberg sees it may be closer than we think, as consumers look to stay in during periods when outbreaks are at a high point. Remote work isn't going anywhere, and the surge in at-home entertainment may very well be just beginning.
In this piece, we used TipRanks' Comparison Tool to evaluate three stock giants that could become dominant forces in a metaverse market that could hit $475 billion in 2028.
Nvidia (NVDA)
Nvidia is a hardware innovator that could lay down the foundation for the metaverse. The chipmaker has an incredibly expensive stock due to its front-row seat to many of the hottest tech trends, from AI to the metaverse.
The company's Omniverse real-time graphics platform is nothing short of exciting. The Omniverse Enterprise platform can help drive a revolution in automation. However, its applications could also help power the metaverses of tomorrow.
Further, the firm's cutting-edge graphical-processing units (GPUs) will experience a surge in demand once the metaverse is ready for prime time. Nvidia is already a video-gaming powerhouse, with many of today's popular gaming PCs sporting Nvidia hardware.
On the GPU front, Nvidia is a standout player that could continue to flex its muscles. Though shares are expensive, the magnitude of growth on the horizon could have the potential to be unfathomably high.
Despite the lofty price tag on shares, Nvidia still has the Street’s support; The stock has no fewer than 30 analyst reviews on record, and they break down 25 to 5 (or 5 to 1, if you prefer) in favor of the Buys over Holds, for a Strong Buy analyst consensus view. NVDA is currently priced at $181.63 and its $245.55 average price target indicates room for ~35% share appreciation from that level. (See NVDA stock forecast on TipRanks)
Apple (AAPL)
Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. Though only a select few apps make the most of the latest iPhone's AR capabilities, we could see a surge in developers leveraging Apple's powerful AR toolkit once Apple launches a headset.
All eyes are open to Apple's coming headset, rumored to include the powerful M2 chip and incredibly high-resolution screens. Simply put, the device will be expensive, perhaps pricier than an upscale iPhone.
Accompanying the headset will likely be a cutting-edge operating system (rumored to be called realityOS or rOS). It seems like Apple is using the same playbook (or launchpad) it used when launching the first iPhone. I think Apple's headset could be a game-changer that gradually erodes the smartphone market.
It's not just the visual aspect that Apple may have down. Apple's spatial audio could make the Apple mixed-reality experience that much more immersive. Undeniably, Apple's a force to be reckoned with in the audio department, with its hot-selling AirPods and Apple Music.
Apple is no stranger to cannibalizing its own products, and it could be ready to do it again in 2023.
Tech stocks tend to attract a lot of attention, especially Apple – the stock has 27 analyst reviews on record, and they include 20 Buys against 6 Holds and a single Sell, to give the company its Moderate Buy consensus rating. The shares have an average price target of $179.89, indicating room for 11% growth from the current price of $162.51. (See AAPL stock forecast on TipRanks)
Microsoft (MSFT)
Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Though Microsoft is best-known for enterprise software, the firm has steadily grown its share in the video-gaming market with its impressive Xbox console, Xbox Game Pass subscription service, and Xbox Cloud Gaming.
Microsoft's expertise in gaming and the cloud could help smoothen the firm's transition into the metaverse. Indeed, the metaverse may not be just for play but for work.
On that front, Microsoft's Teams Mesh product is an intriguing environment that could be the next step up from the conference calls that we're all too familiar with. A digital office environment would be more engaging and could bring back a lot of the presence lost with the transition to remote work.
Microsoft is a fine pick to play software within the metaverse. Gaming and workplace collaboration will be two of the biggest draws to the metaverse, and it's hard to find a company that's excelled in both fields as well as Microsoft.
What does the Street think? With 29 Buy ratings and no Holds or Sells, the message is clear: MSFT is a Strong Buy. The $331 average price target puts the upside potential at ~18%. (See MSFT stock forecast on TipRanks)
Bottom line
The metaverse will be a game-changing technology, but the transition will not happen overnight. It's a trend that could accompany sizeable rewards over the next 10-15 years. The three stocks mentioned, I believe, are among the best ways to play the technological shift. Of the three metaverse plays in this piece, Wall Street expects the most from Nvidia over the next year, with around 35% expected returns.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. At the time of publication the writer did not have a position in any of the securities mentioned in this article.
In this piece, we used TipRanks' Comparison Tool to evaluate three stocks that could become dominant forces in a metaverse market that could hit $475 billion in 2028.
Virtual reality (VR), augmented reality (AR), the metaverse, and all the sorts have been intriguing technological trends that excited many investors last year. Though most of the hype has died down and valuations have contracted, such themes are not going anywhere. In fact, it may be wise to reconsider many of the fallen VR/AR stocks before they have a chance to heat up again.
Understandably, investors have soured on technology stocks, with rates poised to rise quickly. Inflation continues to linger, and a recession could easily curb demand for discretionary goods like mixed-reality headsets and all hardware needed to get into the metaverse.
Further, nobody is really sure when the metaverse will be ready for prime time. Mark Zuckerberg thinks the metaverse represents a multi-billion-dollar opportunity. He may very well be right. However, the timeline is less certain.
In an era of COVID-19 and Monkeypox, which was recently declared a global health emergency, the metaverse as Zuckerberg sees it may be closer than we think, as consumers look to stay in during periods when outbreaks are at a high point. Remote work isn't going anywhere, and the surge in at-home entertainment may very well be just beginning.
Apple (AAPL)First up, we have iPhone maker Apple, which has made significant strides in AR in recent years. Though only a select few apps make the most of the latest iPhone's AR capabilities, we could see a surge in developers leveraging Apple's powerful AR toolkit once Apple launches a headset.
All eyes are open to Apple's coming headset, rumored to include the powerful M2 chip and incredibly high-resolution screens. Simply put, the device will be expensive, perhaps pricier than an upscale iPhone.
Accompanying the headset will likely be a cutting-edge operating system (rumored to be called realityOS or rOS). It seems like Apple is using the same playbook (or launchpad) it used when launching the first iPhone. I think Apple's headset could be a game-changer that gradually erodes the smartphone market.
It's not just the visual aspect that Apple may have down. Apple's spatial audio could make the Apple mixed-reality experience that much more immersive. Undeniably, Apple's a force to be reckoned with in the audio department, with its hot-selling AirPods and Apple Music.
Apple is no stranger to cannibalizing its own products, and it could be ready to do it again in 2023. For now, Apple stock is down around 13% from its high.
Wall Street is bullish, with the average Apple stock price target of $179.53, implying 14.1% upside.
Nvidia (NVDA)Nvidia is another hardware innovator that could lay down the foundation for the metaverse. The chipmaker has an incredibly expensive stock due to its front-row seat to many of the hottest tech trends, from AI to the metaverse.
The company's Omniverse real-time graphics platform is nothing short of exciting. The Omniverse Enterprise platform can help drive a revolution in automation. However, its applications could also help power the metaverses of tomorrow.
Further, the firm's cutting-edge graphical-processing units (GPUs) will experience a surge in demand once the metaverse is ready for prime time. Nvidia is already a video-gaming powerhouse, with many of today's popular gaming PCs sporting Nvidia hardware.
On the GPU front, Nvidia is a standout player that could continue to flex its muscles. Though shares are expensive, the magnitude of growth on the horizon could have the potential to be unfathomably high.
Despite the lofty price tag on shares, Wall Street is incredibly bullish, with the average Nvidia stock price target of $245.55, implying 36.5% upside.
Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Though Microsoft is best-known for enterprise software, the firm has steadily grown its share in the video-gaming market with its impressive Xbox console, Xbox Game Pass subscription service, and Xbox Cloud Gaming.
Microsoft's expertise in gaming and the cloud could help smoothen the firm's transition into the metaverse. Indeed, the metaverse may not be just for play but for work.
On that front, Microsoft's Teams Mesh product is an intriguing environment that could be the next step up from the conference calls that we're all too familiar with. A digital office environment would be more engaging and could bring back a lot of the presence lost with the transition to remote work.
Microsoft is a fine pick to play software within the metaverse. Gaming and workplace collaboration will be two of the biggest draws to the metaverse, and it's hard to find a company that's excelled (pardon to pun!) in both fields as well as Microsoft.
Wall Street is bullish, with the average Microsoft stock price target of $333.15, implying 20.5% upside.
Conclusion: Analysts are Most Bullish on NVDAThe metaverse will be a game-changing technology, but the transition will not happen overnight. It's a trend that could accompany sizeable rewards over the next 10-15 years. The three stocks mentioned, I believe, are among the best ways to play the technological shift. Of the three metaverse plays in this piece, Wall Street expects the most from Nvidia over the next year, with around 36.5% expected returns.
A Democrat of California, Nancy Pelosi’s unparalleled expertise in the politics has made her a global figure. In addition to this, the U.S. politician is known for her investments in the U.S. stock market. Interestingly, the Speaker of the House of Representatives traded (bought and sold) the stocks of four mega-companies in the past year, which are as follows: NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: APPL), and Visa Inc. (NYSE: V).
It is worth mentioning here that shares of NVIDIA have declined 8.8% in the past year, while Visa is down 14.8%. Meanwhile, Tesla stock has advanced 27.4% and Apple is up 8.2%.
NVDA and AAPL are behemoths in the technology sector. While TSLA falls in the category of the consumer goods sector, Visa belongs to the services sector. In addition to the above-mentioned companies, the Congresswoman traded the stocks of six other companies (from the credit services, media, telecommunications, and asset management industries) in the past year.
A consolidated chart of the four mega-companies traded by Nancy Pelosi has been designed using TipRanks’ Stock Screener tool.
NVIDIA Corporation (NASDAQ: NVDA)Nancy Pelosi is in full support of the CHIPS-plus bill, which aims at offering $52 billion worth of aid to chip manufacturing companies in the United States, and $24 billion of tax credits for investments in semiconductor manufacturing. Approved by the Senate on Wednesday, the bill now awaits a go-ahead from the House and the signature of President Joe Biden. Semiconductor manufacturing company NVIDIA would be one of the beneficiaries if the bill is passed.
Shares of the $413.3-billion company grew 7.6% on Wednesday. In June 2022, Pelosi purchased 20,000 shares of NVDA (valuing within the $1 million to $5 million range). She sold 25,000 NVDA shares for $1 million to $5 million before the Senate passed the bill on Wednesday. The Sell trade was primarily to avoid any debate over her exposure to NVDA stock, especially when she is backing the CHIPS-plus bill.
The company’s prospects are solid and it has a Strong Buy consensus rating based on 25 Buys and five Holds. NVDA’s average price target of $245.55 mirrors upside potential of 38.03%.
Tesla, Inc. (NASDAQ: TSLA)The 82-years old politician purchased 2,500 shares of Tesla for $1 million to $5 million in March 2022. Shares of the electric vehicle manufacturing company have surged 27.4% in the past year, while advancing 6.2% on Wednesday. Recently, the company impressed investors with its upbeat Q2 earnings, ramped-up production levels, and efforts to improve its liquidity profile.
The U.S. government’s efforts to boost the manufacturing of electric vehicles (EV) domestically would be a boon for Tesla. Also, the CHIPS-plus bill, once cleared, could help this $804.8-billion company purchase U.S.-manufactured chips at affordable prices for its electric vehicles.
On TipRanks, the company has a Moderate Buy consensus rating based on 18 Buys, six Holds, and seven Sells. TSLA’s average price forecast of $872.28 suggests 5.8% upside potential.
Apple Inc. (NASDAQ: APPL)In January this year, the Democrat increased her stake in Apple by purchasing 10,000 shares for $1 million. The fundamentals of this high-end smartphone marker are solid, and so is its presence in the global market. However, the company is suffering from supply-chain issues and loss of business in Ukraine & Russia.
Interestingly, Apple would be able to reduce its dependence on international companies for the supply of semiconductor chips once the bill receives the green light. Shares of this $2.45-trillion company grew 3.4% on Wednesday.
Overall, the Street is cautiously optimistic about Apple and has a Moderate Buy consensus rating based on 22 Buys, six Holds, and one Sell. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level.
Visa Inc. (NYSE: V)Nancy Pelosi decreased her holdings in Visa by 10,000 shares in June 2022. The Sell trade was valued within the $1 million to $5 million range. Recently, the credit services provider posted upbeat results for the third quarter of fiscal 2022 (ended June 2022). The year-over-year comparisons for the top line (driven by high volumes) and bottom line were impressive.
Uncertainties in the global economy and fears of a recession in the United States are troubling Visa. Shares of this $442.7-billion company were down 1% on Wednesday. Despite exposure to these headwinds, analysts have faith in the company, which commands a Strong Buy consensus rating based on 17 Buys and two Holds. V’s average price target of $255.89 reflects an upside potential of 21.58% from the current level.
Why Is It A Good Idea to Track Nancy Pelosi’s Trading Activities?Nancy Pelosi’s portfolio, which includes investments by her family, has yielded a return of 1.11% in the last seven days. The type of companies in her portfolio (all long-term winners in their respective fields) and the timings of increasing and decreasing stakes in them tell us about her expertise in the field. Tracking the veteran politician’s stock market moves could be beneficial for investors.
Read full Disclosure
A Democrat of California, Nancy Pelosi’s unparalleled expertise in the politics has made her a global figure. In addition to this, the U.S. politician is known for her investments in the U.S. stock market. Interestingly, the Speaker of the House of Representatives traded (bought and sold) the stocks of four mega-companies in the past year, which are as follows: NVIDIA Corporation (NASDAQ: NVDA), Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: APPL), and Visa Inc. (NYSE: V).
It is worth mentioning here that shares of NVIDIA have declined 8.8% in the past year, while Visa is down 14.8%. Meanwhile, Tesla stock has advanced 27.4% and Apple is up 8.2%.
NVDA and AAPL are behemoths in the technology sector. While TSLA falls in the category of the consumer goods sector, Visa belongs to the services sector. In addition to the above-mentioned companies, the Congresswoman traded the stocks of six other companies (from the credit services, media, telecommunications, and asset management industries) in the past year.
A consolidated chart of the four mega-companies traded by Nancy Pelosi has been designed using TipRanks’ Stock Screener tool.
NVIDIA Corporation (NASDAQ: NVDA)Nancy Pelosi is in full support of the CHIPS-plus bill, which aims at offering $52 billion worth of aid to chip manufacturing companies in the United States, and $24 billion of tax credits for investments in semiconductor manufacturing. Approved by the Senate on Wednesday, the bill now awaits a go-ahead from the House and the signature of President Joe Biden. Semiconductor manufacturing company NVIDIA would be one of the beneficiaries if the bill is passed.
Shares of the $413.3-billion company grew 7.6% on Wednesday. In June 2022, Pelosi purchased 20,000 shares of NVDA (valuing within the $1 million to $5 million range). She sold 25,000 NVDA shares for $1 million to $5 million before the Senate passed the bill on Wednesday. The Sell trade was primarily to avoid any debate over her exposure to NVDA stock, especially when she is backing the CHIPS-plus bill.
The company’s prospects are solid and it has a Strong Buy consensus rating based on 25 Buys and five Holds. NVDA’s average price target of $245.55 mirrors upside potential of 38.03%.
Tesla, Inc. (NASDAQ: TSLA)The 82-years old politician purchased 2,500 shares of Tesla for $1 million to $5 million in March 2022. Shares of the electric vehicle manufacturing company have surged 27.4% in the past year, while advancing 6.2% on Wednesday. Recently, the company impressed investors with its upbeat Q2 earnings, ramped-up production levels, and efforts to improve its liquidity profile.
The U.S. government’s efforts to boost the manufacturing of electric vehicles (EV) domestically would be a boon for Tesla. Also, the CHIPS-plus bill, once cleared, could help this $804.8-billion company purchase U.S.-manufactured chips at affordable prices for its electric vehicles.
On TipRanks, the company has a Moderate Buy consensus rating based on 18 Buys, six Holds, and seven Sells. TSLA’s average price forecast of $872.28 suggests 5.8% upside potential.
Apple Inc. (NASDAQ: APPL)In January this year, the Democrat increased her stake in Apple by purchasing 10,000 shares for $1 million. The fundamentals of this high-end smartphone marker are solid, and so is its presence in the global market. However, the company is suffering from supply-chain issues and loss of business in Ukraine & Russia.
Interestingly, Apple would be able to reduce its dependence on international companies for the supply of semiconductor chips once the bill receives the green light. Shares of this $2.45-trillion company grew 3.4% on Wednesday.
Overall, the Street is cautiously optimistic about Apple and has a Moderate Buy consensus rating based on 22 Buys, six Holds, and one Sell. AAPL’s average price target is $179.53, suggesting 14.5% upside potential from the current level.
Visa Inc. (NYSE: V)Nancy Pelosi decreased her holdings in Visa by 10,000 shares in June 2022. The Sell trade was valued within the $1 million to $5 million range. Recently, the credit services provider posted upbeat results for the third quarter of fiscal 2022 (ended June 2022). The year-over-year comparisons for the top line (driven by high volumes) and bottom line were impressive.
Uncertainties in the global economy and fears of a recession in the United States are troubling Visa. Shares of this $442.7-billion company were down 1% on Wednesday. Despite exposure to these headwinds, analysts have faith in the company, which commands a Strong Buy consensus rating based on 17 Buys and two Holds. V’s average price target of $255.89 reflects an upside potential of 21.58% from the current level.
Why Is It A Good Idea to Track Nancy Pelosi’s Trading Activities?Nancy Pelosi’s portfolio, which includes investments by her family, has yielded a return of 1.11% in the last seven days. The type of companies in her portfolio (all long-term winners in their respective fields) and the timings of increasing and decreasing stakes in them tell us about her expertise in the field. Tracking the veteran politician’s stock market moves could be beneficial for investors.
Read full Disclosure