The metaverse is a term that currently describes a single, shared, immersive, and constant 3D virtual space where we can experience life in ways we cannot in the real world. That explains the metaverse, according to techtarget.com anyway. I’m one who thinks the metaverse has clear ramifications for gaming stocks and tech in general.
Gaming stocks that best harness metaverse technology to create immersive playable worlds have clear advantages. There are opportunities in such universes that we cannot fully fathom yet. However, business minds will find ways to derive revenue from these worlds, creating shareholder value.
Therefore, one avenue investors have to profit on this space is to invest in companies building out the metaverse. Here are there metaverse gaming stocks I think investors should be focused on right now.
| NVDA | Nvidia | $277.49 |
| RBLX | Roblox | $35.60 |
| U | Unity Software | $26.97 |
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) stock is a clear opportunity for those looking to bet on the rise of the metaverse over the long-term. The company is currently leveraging its position in AI across its corporate branding. Nvidia essentially created the graphics processing unit, which has been integral in accelerating graphical rendering. Consequently, Nvidia has become one of the most important firms in this sector, and is intimately connected to AI.
At the same time, Nvidia retains relevance across vast fields related to computing, including the metaverse. The company’s Omniverse platform enables Universal Scene Description-based 3D application development.
In other words, Nvidia’s graphics tools are at the heart of 3D graphics, and the things that will populate metaverse worlds, like avatars.
One example of Nvidia’s applicability to the metaverse is building digital twins. Nvidia’s Omniverse enterprise solutions allow developers to create 3D replicas of natural world objects. So, Nvidia is already a part of constructing the metaverse from individual objects to entire worlds, real and imagined.
Roblox (RBLX)
Roblox (NYSE:RBLX) is the truest gaming stock for investors looking to gain exposure to the Metaverse. Roblox is a universe of many metaverses, built by creators.
Developers have created over 40 million games on the Roblox platform since late 2022. There’s a lot of activity occurring through the platform, which offers a free space for creating user-generated content. However, it’s very tough to stand out. This means creators then have to be able to create a world that is monetizable for Roblox to care about.
Despite the apparent difficulty facing creators, Roblox’s platform is promising. It’s free to create games, as mentioned. But Roblox is also available across multiple platforms. From PC to mobile, tablet, and gaming console versions, Roblox ensures that just about anyone who wants to play can play in the Roblox metaverse. That makes RBLX stock a leader in the metaverse era.
Unity Software (U)
Unity Software (NYSE:U) is integral to creating real-time 3D content, or RT3D. In terms of potential returns, investors will be keen to know that U stock has more than a 25% upside right now. The firm’s 3D content has broad utility across the industry. To that end, the company recently released Unity Industry for transferring 3D data into digital assets.
The company has organized a series of information sessions designed to apprise creators and executives of best leveraging its metaverse technology. Each series is intended as a monthly session in which experts discuss opportunities and teach skills to those user groups. Clearly, the company has distinguished the distinct user targets it sees as valuable to the metaverse opportunity. Those respective series can be found here. Unity Software is highly-relevant to the metaverse gaming opportunity, but touches upon so many other 3D applications that it cannot be considered a pure-play investment.
On the date of publication, Alex Sirois 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.
