- Nvidia (NVDA): Core segments are poised to benefit immensely from the proliferation of the metaverse
- Meta Platforms (FB): A key needle-mover of the metaverse, which stands to rake in millions from the space
- Roblox (RBLX): Metaverse pioneer with a colossal non-paying user base
There’s a ton of excitement surrounding the massive potential of the metaverse stocks. Though the concept is still evolving, the consensus is that it will become a growth juggernaut down the line. It is essentially a fusion of physical and virtual worlds in simpler terms. Hence, for investors, the metaverse and metaverse stocks offer incredible upside potential.
The metaverse is the next big thing in technology, attracting game developers, brands, social networks, and other entities in capturing a slice of what could be a multi-billion dollar industry. It’s an emerging concept likely to explode in the coming years, based on its utility in several fields. According to a Bloomberg could be worth a whopping $800 billion in 2024, a $300 billion jump from 2020.
Having said that, let’s look at three of the top needle-movers in the metaverse space.
| NVDA | Nvidia | $213.73 |
| FB | Meta Platforms | $193.33 |
| RBLX | Roblox | $35.66 |
Metaverse Stocks: Nvidia (NVDA)
Chip giant Nvidia (NASDAQ:NVDA) is likely to benefit immensely from the proliferation of the metaverse. Its core video gaming and data center businesses have been growing rapidly and will continue performing well on the back of multiple catalysts, including the metaverse.
According to Grayscale Investments, the market for virtual video gaming can grow from $180 billion in 2020 to $400 billion by 2025. Therefore, the market for gaming hardware is likely to grow rapidly, unlocking an incredible long-term opportunity for Nvidia’s gaming business.
Moreover, the metaverse is already playing a part in Nvidia’s massive data center business. Meta Platforms announced it would be using Nvidia’s GPUs in its artificial intelligence (AI) Research SuperCluster (RSC) supercomputer. RSC is likely to be the fastest AI supercomputer and will aid Meta in building the metaverse. As we advance, it won’t be surprising if more supercomputers are used in advancing the metaverse concept, with Nvidia being a key player.
Furthermore, there’s also the growing adoption of its Omniverse platform, which led to triple-digit growth in its professional visualization segment. The platform allows users to create 3D designs and digital twins, which can be used in the metaverse. Back in November, the company said that over 700 companies are using the platform, which will continue rising in the future.
Meta Platforms (FB)
Meta Platforms (NASDAQ:FB) name change from Facebook broke the internet last October. Its strategic direction shifted towards what its CEO deems “the successor of the mobile internet.” He believes that it represents the next frontier of the internet, impacting virtually every aspect of our lives.
The tech giant invested a colossal $10 billion in developing the metaverse in 2021, a figure which will continue growing for the foreseeable future. Moreover, as discussed earlier, it plans to accelerate metaverse workloads by developing the world’s fastest AI supercomputer.
Meta announced it would leverage its Horizon Worlds virtual reality platform to monetize the metaverse. The platform will enable users to sell virtual experiences and items in the 3D world. The company will take a 47.5% cut of the amount spent on the Horizon platform.
According to Verge, the platform attracted an impressive 300,000 monthly VR users in February this year. Hence, the combined effect of Meta’s addicting social products and its new hardware exploits could result in tremendous revenue growth in the future.
Metaverse Stocks: Roblox (RBLX)
Metaverse pioneer Roblox (NYSE:RBLX) gained millions of users during the pandemic, resulting in an explosion in sales. Consequently, RBLX stock was on fire for the bulk of the pandemic but has dipped considerably of late. Investors are fearful of the company’s potential in the post-pandemic world. However, as of February, the company boasted 55.1 million daily users on its platform, a 28% increase from last year.
Moreover, it generated an incredible $659 million in cash flows from operations during the fiscal year ending last year. That number was up significantly from the $524 million it earned during the same period last year. Additionally, its revenues came in at a remarkable $1.9 billion, a $922.1 million bump from the prior-year period.
It earns virtually all its revenues from players depositing money to buy Roblox, its in-game currency. However, roughly 1.49% of its 45.5 million active users are paying customers at the end of December. Therefore, Roblox has a tremendous untapped opportunity to generate more sales.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
