In the investment world, the interest in virtual reality (VR) and augmented reality (AR) has been growing, with the metaverse’s emergence during the pandemic further fueling interest. As the technology evolves, the prospects have sharpened. The evolving tech makes these strong buy AR stocks a focal point for forward-thinking investors.
The AR & VR market, already vibrant, is poised for remarkable growth, projected to reach a revenue of $38.6 billion in 2024. It is also expected to surge at an annual rate of 10.8% (CAGR 2024-2028), culminating in a market volume of $58.1 billion by 2028.
This year is shaping up to be pivotal for the AR and VR sector, with major firms set to release innovative AR/VR headsets. This surge in product launches coincides with a promising macroeconomic landscape. The anticipated three Federal Reserve rate cuts are predicted to stimulate lending, injecting vitality into the economic engine and, by extension, propelling the growth of augmented reality stocks.
Meta Platforms (META)
Meta Platforms (NASDAQ: META) is charting a bullish course, marked by a 147% surge in its share price over the past year, buoyed by the burgeoning augmented reality market. The tech giant’s strides in AR are evident, with 20 million headsets sold. There is also a groundbreaking AR glasses prototype poised to make waves in 2024.
Moreover, CEO Mark Zuckerberg is steering Meta into AI’s frontier, securing a massive arsenal of Nvidia’s (NASDAQ:NVDA) H100 graphics cards. This strategic investment signals Meta’s ambition to contend in the Artificial General Intelligence race. This aligns with industry pioneers like OpenAI and Google’s Deep Mind.
Furthermore, Meta’s financial prowess mirrors its technological ambitions, with revenues reaching $40.11 billion. This resulted in a 24.7% year-over-year increase, and full-year revenue reaching $134.9 billion, up by 16%. This financial vigor, coupled with a net income surge of 201%, positions Meta favorably among TipRanks analysts. These analysts bestow a “Strong Buy” rating and foresee a 12.75% growth potential in its market trajectory.
Alphabet (GOOG,GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has masterfully transformed into a digital titan, steering global communication with a 39.6% stock surge over the past year. This dedication shines through in Google’s AR platform, adeptly blending digital realms with our physical world, enhancing everyday tasks and exploratory ventures alike.
Meanwhile, the tech world buzzes with anticipation for Google’s cohesive AR blueprint, especially advancements in AR hardware and integrated services. Despite high expectations, the industry awaits a definitive stride in 2024, a move poised to redefine interactive technology.
This strategic suspense, coupled with Alphabet’s robust financial performance, including a 13% revenue hike to $86 billion and standout Google Cloud growth at 26% to $9.2 billion, underscores its market prowess. It is further bolstered by Alphabet’s command in search, YouTube, and Android ecosystems, propelling its reputation as a growth powerhouse. Analysts from TipRanks echo this sentiment, bestowing a “Strong Buy” rating with a promising 12.23% upside potential.
Microsoft (MSFT)
Microsoft’s (NASDAQ:MSFT) trajectory in the tech cosmos mirrors its stature, with its stock ascending 57% over the past year. At Ignite 2023, the tech behemoth unveiled Azure Cobalt and Azure Maia, pioneering strides in cloud-centric CPUs and AI accelerator chips. These innovations, coupled with refinements in Dynamics 365 and Power Platform, underscore its integration of AI into business operations.
Simultaneously, the introduction of Copilot within Microsoft 365 marks a significant leap. This advancement comes at a fortuitous juncture, resonating with the anticipated resurgence of the PC market. The strategic alignment with emerging market trends underscores Microsoft’s acumen in seizing growth opportunities.
Moreover, Microsoft’s financial prowess shines brightly, with an 18% year-over-year revenue surge to $62 billion. Azure’s revenue, in particular, soared by 30%, reflecting the company’s robust strides in AI integration. This performance, crowned by a ‘strong buy’ rating from TipRanks analysts and a projected 16% upside, solidifies Microsoft’s unyielding ascent in the tech domain.
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
