Metaverse is an industry that blends several parts of the technology industry. The term metaverse simply means the general interaction of humans in a virtual world. The industry is an intersection of gaming, virtual reality, machine learning, blockchain, and artificial intelligence.
In all, analysts expect that the metaverse industry will keep growing in the next decade. For example, a recent report showed that the industry will be worth more than $828 billion by 2028. This growth will be driven by the software and hardware aspects of it.
Today, cryptocurrency projects like Decentraland, Axie Infinity, and The Sandbox are implementing the metaverse using blockchain technology. For example, in Decentraland, you can buy and create your virtual land and then sell it in the marketplace using blockchain.
Therefore, there are many publicly-traded companies that will benefit from the industry. In this article, we will look at some of these companies.
Roblox
Roblox is a major technology company that is valued at more than $60 billion. It went public in March 2021, and its stock more than doubled in November. The firm generates about $1 billion in revenue every year.
Roblox is a gaming platform that enables people to play games on their computers and smartphones. It also allows developers to build games inside the platform. At the same time, people can buy and sell virtual products. In all, the firm’s core products are the Roblox Client, Studio, and Cloud.
Roblox has grown at a quick rate in the past few years. The number of daily active users has grown to more than 36 million, while the number of hours engaged in the platform has grown to more than 10 billion per year.
There are several reasons why Roblox is a good metaverse stock to invest in. First, while the company is facing strong competition in the industry, it is also at a pole position. This means that it has more advantages than other firms that are coming up.
Second, the company has a strong user base who are actively engaged in the platform. This means that the firm has more room to monetize them in the long term.
Third, the firm has more areas for growth. For example, it has inked deals with some of the biggest companies in the United States like Disney, Sony, and Gucci. This means that the business will keep rallying in the long term.
Nvidia
Nvidia is the biggest semiconductor company in the United States. The company has a total market capitalization of more than $759 billion. This makes it substantially bigger than other rivals like Taiwan Semiconductor, Intel, and AMD.
Nvidia manufactures several products, but the best-known of them is its graphical processing units (GPUs). A GPU is a semiconductor that helps in computer rendering. Today, its GPUs are used in computers, automobiles, and data centers. It is also widely used by power gamers, Bitcoin miners, and other power users.
The metaverse industry uses significant computing power. For example, decentralized platforms like Decentraland and The Sandbox use more computing power than average applications. Therefore, the company’s products will be in high demand.
Indeed, Nvidia has already launched a series of products focused on the industry. In a recent developers conference, the company said that it was bringing more capabilities into its platform. For example, people will be able to build digital twins of products. Nvidia’s metaverse capabilities are known as Omniverse.
Unity Software
Unity Software is another company that went public in 2021. Since going public, the company’s stock has jumped by more than 93%, while its market capitalization has risen to more than $51 billion.
Unity Software offers a number of products like Unity Pro, Unity Enterprise, Unity Ads, VisualLive, Art Engine, and Reflect, among others.
To be fair, Unity Software is not a household name. However, most people have heard about the company’s products. For example, if you play games regularly on your smartphone or console, there is a high likelihood that it was built using Unity’s software.
Indeed, most game studios like Atari, Riot Games, and Phoenix Labs use its software. Some of the games built using the software are League of Legends, Teamfight Tactics, Convergence, and Ruined Kings.
Therefore, the company is already playing an important role in the metaverse ecosystem. And its revenue growth is accelerating. For example, in the third quarter of 2021, the company’s revenue rose by 48% to $273 million. Analysts expect that this trend will continue.
Corsair Gaming
Corsair Gaming is a technology company that went public in 2021. It has a market cap of over $2 billion. The company is different from the ones mentioned because it is a manufacturer of hardware.
Corsair manufactures some of the most popular gaming gear in the world. For example, it sells items like keyboards, monitors, headsets, and mousepads. In addition, it sells products that are essential in streaming. The company also sells gaming PCs.
The company has been getting more popular in the past few years. As a result, its total revenue and profitability have also been rising. For example, the firm’s revenue jumped by 24% in the second quarter of 2022, while its profits rose by 22% to $27.7 million.
Therefore, the company will get more popular as the metaverse industry goes on. At the same time, because of its strong reputation, the firm has more room for growth by launching new products.
Final thoughts
The metaverse is a fast-growing industry that is in its early days. In this article, we have explained what the industry is, how it works, and its estimated total addressable market. We have also looked at some of the best metaverse stocks you can invest in.
Still, there are more of these companies. For example, Facebook has changed its holding company name to Meta Platforms as it expands into the industry. At the same time, Microsoft has unveiled its metaverse products. Other firms that will benefit from the industry are Take 2 Interactive and Electronic Arts(EA).
