Virtual reality (VR) had its peak in 2023 alongside artificial intelligence (AI). They are already part of the technology of this new era. We have experienced the great utility of VR through the metaverse, video games and work meetings — among many other things. If you want to invest in this technology sector, here are three top VR stocks you can consider adding to your portfolio.

NetEase (NTES)

NetEase (NASDAQ:NTES) is a major Chinese technology company making waves in a variety of sectors. In the third quarter of 2023, it reported stellar financial results, with an overall revenue of $3.7 billion, up an impressive 11.6% year-over-year (YoY).

Games, a major revenue driver, saw a substantial 16.5% YoY increase to $3 billion. Despite a slight decline in Cloud Music revenue, innovative businesses saw a rebound, contributing to an overall increase in gross profit to $2.3 billion.

In a bold move, NetEase Games expanded with the launch of T-Minus Zero Entertainment in Austin, Texas, led by industry veteran Rich Vogel. The studio will create an ambitious and original multiplayer sci-fi game, a reflection of NetEase’s commitment to innovation in global gaming.

In addition, NetEase Games established PinCool, Inc. in Tokyo, led by Ryutaro Ichimura, an experienced figure in the video game industry known for his work on the Dragon Quest franchise.

PinCool’s goal is to provide world-class entertainment experiences worldwide, focusing on game console development and venturing into various forms of entertainment.

NetEase’s strong financials, coupled with strategic expansions and innovative studios such as T-Minus Zero Entertainment and PinCool, position it as a compelling option for inclusion in a virtual reality-focused investment portfolio in 2024.

Universal Display (OLED)

Universal Display (NASDAQ:OLED) is a technology company dedicated to creating modern, energy-efficient displays and lighting systems with its special UniversalPHOLED technology.

You know those amazing OLED displays in smartphones and TVs? Well, Universal Display is a major contributor to making them vibrant and energy-saving.

The company recently partnered with BOE Technology Group, a big player in IoT innovation. While it hasn’t disclosed the financial details, partnerships like this make Universal Display a major player in the technology sector, and that’s good news for investors.

Let’s talk numbers for a moment. In the third quarter of 2023, its total revenue was $141.1 million, down slightly from last year. However, material sales were up, thanks to people loving its next-generation emitter products.

On the other hand, royalty and licensing revenues were down a bit. Money talks, but it is not the only important thing.

Financial ups and downs aside, Universal Display continues to release technology tools. At SID Display Week 2023, it showed off its PHOLED and OVJP power.

The company’s goal is to make OLED displays not only beautiful but also energy efficient. Imagine displays on a whole new level, and that’s what OLED is aiming for.

Lumentum Holdings (LITE)

Lumentum Holdings (NASDAQ:LITE) is a company focused on cutting-edge technology, specializing in optical and laser products. The company recently acquired Cloud Light Technology Limited, and its CEO, Alan Lowe, is quite excited about it.

The move, valued at around $750 million, is significant for the company, as it is expected to boost earnings and double revenue in cloud data center infrastructure within a year.

From a financial perspective, LITE reported a net income of $317.6 million, with a gross margin of 24.1% (on the GAAP side) and a healthy 34.9% on the non-GAAP side. Despite reporting an operating loss in GAAP terms, the non-GAAP operating margin remains solid at 3.3%.

Diluted net loss per share is $1.02 on the GAAP side, but there is a positive turn with a diluted non-GAAP net gain per share of $0.35.

Lumentum is showcasing its advancements at the European Conference on Optical Communication (ECOC) 2023, exhibiting interesting products such as the 130+ GBaud Smart Transceiver Receiver Optical Sub-Assembly and compact transceivers like the 800G ZR+ and 0dBm 400G ZR+.

Those devices are the response to the growing demand for high-performance optical solutions in cloud data centers, especially with all the excitement surrounding artificial intelligence and machine learning.

As of this writing, Gabriel Osorio-Mazzilli did not hold (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.