The eSports gaming stocks have captured the attention of investors, positioning themselves as a significant investment arena. Once considered a niche pastime, eSports has evolved into a global phenomenon with remarkable staying power.

Notably, as per Statista’s projections, the global eSports market is set to reach a revenue of $4.3 billion in 2024. Further, the expected compound annual growth rate (CAGR) of 7.10% from 2024 to 2028. Additionally, Statista anticipates a substantial increase in user penetration, rising from 11.7% in 2024 to 13.7% by 2028. Clearly, this reflects the growing global interest in eSports.

Moreover, eSports has gained such popularity that Saudi Arabia recently launched the annual eSports World Cup, featuring top games and substantial prize money. As traditional sports grapple with the challenges posed by a global pandemic, online eSports tournaments and streaming services have seized this opportunity. They thrive amidst shifting consumer behavior.

Consequently, these three stocks represent an enticing prospect to capitalize on the rise of competitive gaming.

Take-Two Interactive (TTWO)

Take-Two Interactive (NASDAQ:TTWO) stands out as a stellar performer in the gaming and eSports arena this year. The company excels in the gaming and esports space, leveraging its NBA 2K franchise as a pivotal element of its successful esports strategy. Notably, the successful launch of the 2018 NBA 2K League marked its inaugural venture into this realm. It demonstrated Take-Two Interactive’s continued commitment to the growing eSports sector.

Moreover, TTWO’s recent financial results left the market astonished. Earnings per share skyrocketed to $1.42, surpassing forecasts by 38%. Additionally, the company achieved record-breaking revenue of $1.44 billion, surpassing preliminary estimates and underscoring its robust growth trajectory.

Take-Two Interactive’s historic inclusion in the Nasdaq 100 Index signifies a groundbreaking milestone. It reflects high investor optimism and heightened anticipation for future releases, especially the hotly anticipated Grand Theft Auto VI. Concurrently, the release of the Grand Theft Auto VI trailer underscores the company’s market prowess.

Tencent Holdings (TCEHY)

Tencent Holdings (OTCMKTS:TCEHY) has boldly invested a whopping $15 billion in the eSports industry, sending shockwaves through the regional market. TCEHY actively fosters talent, promotes league formation, and creates esports-themed parks within its mainstream gaming strategy, firmly anchoring its commitment.

To globalize eSports and align it with the stature of the Olympics, Tencent Holdings has forged a strategic partnership with the Global eSports Federation. This collaborative effort not only extends Tencent Holding’s reach on a global scale but also underscores its dedication to elevating eSports to an international level. The company’s participation in events like the League of Legends championship further reinforces its significance in eSports, captivating a vast global audience.

The company’s eSports strides make headlines, but its expansion into e-commerce, cloud services, and digital content complements its dominant gaming division. This strategic diversification, fueled by robust tech and a massive user base, cements Tencent Holding’s competitive advantage in the technology landscape.

Electronic Arts (EA)

Electronic Arts (NASDAQ:EA) has admirably outperformed in the esports stocks arena, boasting a remarkable year-over-year (YOY) return of around 17%. The fiscal 2024 third quarter report significantly exceeded expectations, with earnings per share of $1.07. That surpassed consensus estimates by a notable 17 cents and marking a remarkable 47% surge from the previous year’s 73 cents.

Moreover, EA’s triumph stems from its active engagement with the eSports community. Investments in events such as the EA Sports WRC Knockout Trophy ’23 and the Apex Legends Global Series Year 2 Championship have expanded their reach and visibility among eSports enthusiasts worldwide.

Furthermore, the integration of UEFA Euro 2024 into EA sports FC 24 and related digital platforms reinforces EA’s preeminent position. Hence, Electronic Arts emerges as a key player in the gaming sector, offering a unique opportunity in eSports 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