These businesses have the technological clout to establish themselves as market leaders over the long haul in the virtual reality space.
Over the years, numerous businesses have dabbled in virtual reality (VR), introducing various headsets and employing various tactics in an effort to persuade users to adopt the technology. Even these digital behemoths haven’t had much success in the market, though, as customers don’t seem to understand the value of VR.
However, the emergence of new businesses and technology advancements have rekindled interest in virtual reality. As a result, the sector presents an intriguing and perhaps profitable investment opportunity.
Here are two virtual reality stocks to consider buying in August.
- Apple
Apple’s (AAPL 0.79%) intentions to enter the virtual reality space have been all but confirmed by filed patents and a number of acquisitions over the years.
With capabilities never before seen in rival headsets, the new gadget seemed to innovate significantly. The Vision Pro will have both VR and augmented reality (AR) features when it debuts in 2024.
The gadget makes use of the same chip that powers the MacBook Air, providing it complete computer capabilities. As a result, the headgear will function on a MacOS-like operating system, offering users access to a variety of computing tasks and well-known Apple programs.
The Vision Pro stands out from other headsets thanks to common features like video calling, editing, word processing, web browsing, and various entertainment possibilities.
The numerous capabilities, however, demonstrate that Apple is using a product strategy that it has utilized successfully in the past. When the Apple Watch originally came out, detractors said that it didn’t have a clear purpose. As a result, Apple loaded the smartwatch with numerous capabilities and let users choose which one best suited their needs.
Apple appears to have handled the Vision Pro similarly. Investors may not yet understand how it will enhance the lives of customers, but in the future years it might change everything. Starting at $3,499, the Vision Pro will be too expensive for many buyers. However, it’s conceivable that the business may lower the price for upcoming generations.
The success and dominance of Apple in consumer technology throughout history augur well for the headset’s long-term performance.
Apple and its investors stand to gain significantly from the development of VR if it can repeat its history of breaking into new product categories and rising to the top.
- Advanced Micro Devices
Advanced Micro Devices (AMD -2.37%), a significant chipmaker, will probably play a significant role in the development of VR. With AMD providing its technology to innumerable products around the industry, the tech titan has established itself as a go-to for businesses looking for powerful chips.
The business only provides chips to the PlayStation 5 from Sony and the Series X|S from Microsoft. Gaming is now AMD’s highest-earning division, with $1.7 billion in sales reported in the third quarter of 2023 because to the agreements. While this is going on, AMD’s partnership with Sony has demonstrated that its processors can handle VR workloads because the PlayStation VR 2 headgear runs straight off the PlayStation 5.
More businesses will probably look to AMD as the VR market matures to upgrade their headsets. Currently, Qualcomm’s Snapdragon XR2, which is based on a 2020 smartphone chip, powers Meta’s Oculus Quest 2 headset. Since Apple is upping the ante by including a whole computer’s worth of power in its upcoming headset, Meta and other businesses will want to equal that capacity in subsequent headsets. AMD has the chips necessary to do so.
AMD has established itself as a leader in many technological fields and has partnered with other businesses in the industry. Because of its potent chips, it has a promising future in VR, making its stock a great method to invest in the developing sector.
