In the stock markets, where major tech players typically capture investors’ attention, hidden-gem VR stocks lie in wait for discovery. The investment landscape has been evolving, and the growing interest in VR has caught the attention of savvy investors. In 2023, both the VR market and AI reached peak popularity, leading to multiple success stories across both domains.

Moreover, according to Grand View Research, the global VR market reached a valuation of $59.96 billion in 2022, and projections indicate substantial growth ahead. The market is expected to achieve a staggering $435.6 billion in sales by 2030, with a 27.5% CAGR from 2023 to the end of the forecast period. This represents a massive total addressable market for hidden-gem virtual reality stocks in 2024.

Now, let’s delve into three hidden gems within the virtual reality stocks landscape, unraveling the factors propelling their ascent.

Matterport (MTTR)

Matterport (NASDAQ:MTTR) stands out as the premier spatial data company, allowing users to digitize buildings and create immersive 3D tours. In terms of its financials, the company has been killing it, reporting robust financials in the third quarter of 2023, with a 7% year-over-year revenue increase to $40.6 million. Notably, its subscription model hit a record high at $22.9 million, reflecting a remarkable 20% annual growth.

During the same quarter, Matterport launched an AI-powered real estate program in beta, automating room measurements and layouts through millions of 3D data points. This move remarkably reduces manual efforts and positions MTTR as an innovator in the VR stocks landscape.

Highlighting recent developments, The Ivy Collection, a leading U.K. restaurant brand, has chosen Matterport’s 3D Property Marketing solution. This strategic move enables The Ivy Collection to showcase private dining spaces virtually, streamlining event planning and improving customer satisfaction, adding to Matterport’s growing list of partnerships.

Unity Software (U)

Unity Software (NYSE:U) takes center stage as a leading provider in the 3D content creation domain, offering interactive and real-time solutions. Despite recent market fluctuations, the company’s strategic decision to reduce its workforce by approximately 25% signifies a concerted effort toward long-term profitability.

In its third-quarter financial report, Unity Software exhibits a compelling narrative, showcasing an impressive 69% year-over-year surge in sales, reaching a noteworthy $544 million. Notably, the Create Solutions segment reported $189 million in revenue, with subscriptions marking a robust 19% increase. Equally noteworthy is the stellar performance of the Grow Solutions segment, which has experienced a remarkable 166% year-over-year growth and achieved a revenue milestone of $355 million.

What distinguishes Unity is its versatile Virtual Reality (VR) software, empowering developers to craft immersive experiences compatible with various platforms such as SteamVR, Meta Quest, and Playstation VR. This adaptability streamlines the development process, solidifying Unity Software’s position as a lucrative choice for creators.

Roblox (RBLX)

Roblox (NYSE:RBLX), initially an online game platform, has seamlessly transitioned into the realm of virtual reality experiences, marking a commendable 22.92% year-over-year growth in its stock price.

Moreover, Roblox recently unveiled robust fourth-quarter results. Despite reporting GAAP earnings per share of negative 52 cents, the company outperformed estimates by three cents. Notably, bookings experienced a significant 25.6% year-over-year increase, reaching $1.13 billion and surpassing forecasts by $50 million. Moreover, revenue soared to $749.9 million, reflecting a substantial 30% growth last year. Looking ahead, management’s optimistic first-quarter 2024 revenue guidance of $755 million to $780 million indicates sustained growth momentum.

Beyond financial prowess, the recent launch of an AI-powered “unified translation model” stands out, enabling real-time conversations and overcoming language barriers for players. Additionally, Roblox’s expansion to the Meta Quest VR headset and Sony Playstation underscores its commitment to capitalize on the Metaverse trend. This diversification enhances Roblox’s accessibility and aligns with the company’s forward-thinking approach to digital community development. This makes it one of those hidden-gem VR stocks.

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