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Metaverse Stocks: How to Invest in the Top 5 Companies That Are Deep in Virtual Worlds

5 mins
Updated by Ryan Glenn
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In Brief

  • The metaverse is not yet in its final form
  • However, investors are looking to get in early
  • Here are the top 5 stocks worth considering
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Metaverse stocks: The metaverse is fast becoming the most anticipated technological development of our generation. The emerging technology is still many years away from being a widespread mainstream success. Yet investors are already seeking opportunities to invest in this brave new interconnected digital landscape, says Rebecca Barnatt-Smith.

The sheer volume of computational power required to fuel the metaverse, and its reliance on virtual and augmented reality, has paved the way for many existing stocks to stand as key beneficiaries in a Web3 environment. But where can wise investments be made on Wall Street?

Top 5 Best Metaverse Stocks: Deep Dive

Let’s take a deeper look into five of the most exciting metaverse stocks available to invest in today, and how each company could grow: 

Metaverse stocks #1: Nvidia (NASDAQ: NVDA)

Firstly, let’s explore a company that could play an essential role in powering the metaverse. While not specifically a metaverse stock company, NVIDIA is an important piece to the web3 at large, and subsequently the metaverse. Nvidia’s graphics cards and data center chips are best positioned to bring the metaverse to life by delivering the computational power required for individuals to interact with one another within a sprawling digital environment. 

Crucially for investors, we’re already seeing Nvidia graphics cards powering Meta Platforms’ AI Research SuperCluster (RSC) supercomputer. The company hopes to create a framework for handling the metaverse’s processing requirements. 

The stock itself has slipped following a blistering 2021. But NVDA’s strong rebound from its Q2 2022 bottom shows that investor confidence in the stock remains strong. 

The company has a strong relationship with Meta, a company hell-bent on building into the metaverse. Nvidia’s strong hand comes from the scale of the task at hand in powering the new Web3 landscape in a way that can cater to all users. According to estimates from Intel, the successful rtttttt of the metaverse would require a 1,000x increase in the computing capacity commonly available today. 

It’s this requirement for the introduction of more processing hardware that’s likely to provide Nvidia with a golden opportunity for strong growth as the development of the metaverse gathers pace. 

Metaverse Stocks: How to Invest in the Top 5 Companies Who Are Deep in Virtual Worlds

Metaverse stocks #2: Unity Software (NYSE: U)

Much like Nvidia, Unity Software is set to be another key player when it comes to powering the metaverse. The company specializes in enabling game developers to create high-quality graphical content that can operate on a cross-platform basis. This can bring together users based on computers, smartphones, games consoles, and VR hardware. As a potential metaverse stock investment, look no further.

Significantly, Unity had a 61% market share of the gaming market by the end of 2021. This makes the company’s stock performance throughout much of the year unsurprising. Unity has been impacted by the tech stock sell-offs of 2022. But the stock’s proximity to the gaming sector is likely to make it a trailblazer as Web3 develops. 

It is thought that the company’s software has been incorporated into the development of more than 60% of the world’s 3D content to date. This can be significant for not only game designers but also metaverse development studios like Born Studios, which can use the technology to render vast 3D creations in the metaverse for its clients. 

Today, Unity is working on a number of platforms like Insomniac Events in order to generate new metaverse worlds. With key industry figures like the Microsoft CEO, Satya Nadella, claiming that the “metaverse is essentially creating games,” it’s likely that Unity will play a central role in the landscape’s development. As a potential investment, Unity Software is one of the best metaverse stocks.

Metaverse Stocks: How to Invest in the Top 5 Companies Who Are Deep in Virtual Worlds

Metaverse stocks #3: Roblox (NYSE: RBLX)

Roblox has built a reputation as an early iteration of the metaverse. As a gaming company, social network, and content creation platform, the stock incorporates many of the foundations of the metaverse as we know it today. Furthermore, Roblox’s market cap of $41.9 billion at the time of its 2021 NYSE listing shows that the company is already a metaverse star in the eyes of Wall Street. 

Significantly, Roblox has become a leading entertainment hub, with 3D concerts for leading artists like Lil Nas X, and David Guetta among many others. At the time of writing, Roblox has hosted more than 24 million 3D experiences for users to involve themselves in. 

We can also see strong evidence of growth for Roblox. In Q4 2021, Roblox counted 49 million active daily users on average, representing a 33% increase from the same time last year. Should the platform build on its growth, it could become the world’s metaverse of choice in the future. 

Metaverse Stocks: How to Invest in the Top 5 Companies Who Are Deep in Virtual Worlds

Metaverse stocks #4: Snap (NYSE: SNAP)

The app formerly known as Snapchat may be acknowledged as a social media giant in its own right. But the company has been making waves in the field of augmented reality throughout recent years. 

In fact, SNAP’s AR investments are generating healthy levels of growth within the platform. They could form an intricate bond with the metaverse as the technology leans further on the development of augmented reality. 

Despite 2022 being a tough time for Snap’s stock market fortunes, 250 million of its users used the platform’s AR tools during Q1 2022. Accompanying Snap’s famous Lenses tool will soon be a fully-fledged pair of AR glasses which may become a precursor to metaverse compatible eyewear. This gives SNAP growth potential as a metaverse stock.

Metaverse Stocks: How to Invest in the Top 5 Companies Who Are Deep in Virtual Worlds

Metaverse stocks #5: Microsoft (NASDAQ: MSFT)

MSFT stock is performing exceptionally well, despite widespread tech sell-offs in comparison to some of its counterparts on this list. Whilst this may mean that there are fewer opportunities to pick up discounted stock, this blue-chip company has proven time and again that it can keep up with new innovations. 

In early 2022, Microsoft announced the acquisition of Activision Blizzard, a leading gaming firm. The $70 billion deal provides access to Activision’s gaming titles like the wildly popular ‘Call of Duty.’ Furthermore, Microsoft will be capable of marketing to Activision’s seismic 390 million monthly users. 

The company has made no secret of the fact that it views gaming as an intrinsic part of the development of the metaverse. In this acquisition, we can see a clear play by Microsoft to emerge as a leader in metaverse-based games. 

Microsoft is also actively working to utilize its HoloLens as a means of creating mixed reality spaces for Teams. Microsoft has a rich history for innovation, and it seems certain that the company will be front and center of metaverse developments, if its recent market movements are anything to go by. As a result, MSFT will be a great metaverse stock to keep an eye out for.

Tips for investors

For investors, it’s essential to continually research the metaverse companies that they are thinking to add to their portfolios. The space is still very much in its formative stages and things can change quickly. 

With this in mind, no metaverse stock is certain for long-term growth. However, with the right level of metaverse exposure, investors are likely to benefit significantly from the space’s winners over time. 

Got something to say about metaverse stocks or anything else? Write to us or join the discussion in our Telegram channel. You can also catch us on Tik Tok, Facebook, or Twitter.

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About the author

Rebecca Barnatt-Smith is a freelance journalist and multi-media marketing executive, interested in the future of the metaverse and what it could mean for investors. She covers tech-based topics, the future of crypto trading and NFT trends.

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