[Editor’s note: “3 Augmented/Virtual Reality Stocks to Buy for a 5G Boost” was previously published in December 2018. It has since been updated to include the most relevant information available.]
The world is beginning a new chapter in wireless technology. I’m talking about 5G.
Nearly all of the major wireless carriers are rolling out 5G, the latest generation of technology. There will be many beneficiaries of this shift. Everything from autonomous vehicles to the Internet of Things (IoT).
But one area that has been overlooked is the augmented reality (AR) and virtual reality (VR) industry. Faster internet speeds combined with less latency (lag time) will result in a much smoother AR/VR experience.
I have used VR headsets a few times, and I have to say I was quite impressed. That said, I am certainly not a hardcore gamer nor did I push the headset to its limits. Once 5G is rolled out, the future of the AR/VR industry will look very different.
Endless Possibilities to Profit From AR/VR
Contrary to popular belief, AR/VR is not only about gaming. The technology can be used in everything from retail to industrial training to professional and amateur sports.
That means there will be a whole lot of winners in this space. Today I want to talk about three stocks to buy that stand out as having some of the greatest long-term potential.
AR/VR Stocks to Buy: Defiance Future Tech ETF (AUGR)
The first name on this list of stocks to buy isn’t exactly a stock, but rather an exchange-traded fund, which means it’s a batch of stocks that are tied to a similar theme/concept.
The Defiance Future Tech ETF (NYSEARCA:AUGR), which was launched in 2018, tracks the BlueStar Augmented and Virtual Reality Index, and it is comprised of companies that have ties to the future of the AR/VR industry.
As they profit from the growing trend, so will AUGR.
Lenovo Group (LNVGY)
Lenovo Group (OTCMKTS:LNVGY) is the largest holding in AUGR, and it has held up pretty well in the recent market pullback, considering it’s based in Hong Kong. Lenovo has a plethora of hardware products and is quickly becoming a major player in VR headsets and accessories.
Advanced Micro Devices (AMD)
Finally, we have Advanced Micro Devices (NASDAQ:AMD). This is one of the leading chipmakers for AR/VR devices.
Chipmakers are very diverse, as their technology is relevant in many of the fast-growing trends in the market. The AR/VR industry is just another that will count on companies like AMD. As a result, AMD stock has a lot of potential to capitalize in the years ahead.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.