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3 Metaverse Stocks That Could Set You Up for Life

3 Metaverse Stocks That Could Set You Up for Life

Posted On November 19, 2021 2:21 pm
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Talk regarding the coming metaverse has reached a fever pitch in recent months. In the latest development, Meta Platforms (NASDAQ:FB) — the company formerly known as Facebook — changed its name to highlight its focus. But what exactly is the metaverse and how can investors profit?

Simply put, the metaverse is a virtual world that will harness the power of a collection of nascent technologies, including augmented reality (AR), virtual reality (VR), and video, and allow users to interact in a digital world. While this might seem like so much science fiction, many of the elements are already in place and companies are racing to stake their claim in this brave new world.

Investors are always looking for the opportunity to get in on the ground floor of the next big trend, and the metaverse could provide one such opportunity. Let’s look at three companies well-positioned to benefit from this evolving trend, which could make investors a fortune in the process.

Nvidia: Underpinning the metaverse

There’s little question that Nvidia (NASDAQ:NVDA) has already been a boon to shareholders in recent years. The designer of graphics processing units (GPUs) is the undisputed leader in the space, with a dominant 83% share in the discrete desktop GPU market.

Parallel processing — the ability to run a multitude of complex mathematical calculations at lightning-fast speeds — not only helps render lifelike images in video games, but has also made GPUs a staple for building artificial intelligence (AI) systems and moving data in cloud computing systems and data centers. It also enables groundbreaking technology in self-driving cars.

This has helped the stock climb more than 130% over the preceding 12 months and deliver a staggering 8,800% gain in the past decade. Investors might be surprised to learn this could be just the beginning.

Nvidia GPUs underpin many of the technological advancements necessary to bring the metaverse to life. Using the same technology the creates life-like images in video games, these semiconductors perform a similar function in the digital realm.

The company continues to produce stunning growth even as the metaverse moves from the drawing board to reality. In the third quarter, Nvidia delivered revenue that grew 50% year over year, which doesn’t even include the massive opportunity the metaverse has to offer.

Nvidia generated revenue of $6.7 million last year, but that pales in comparison to the company’s total addressable market (TAM), which management estimates at $250 billion by 2023.

Powering the metaverse will only expand Nvidia’s already massive opportunity, adding another $10 billion target market over the coming five years.

Roblox: A budding metaverse

If the metaverse is a virtual world where users build homes, work, and play, then Roblox (NYSE:RBLX) already has a head start. The online entertainment platform allows users to build, explore, and create video games and 3D digital worlds.

Well-known musicians host listening parties and perform virtual concerts for their users and Roblox was named to Time‘s inaugural list of the Time100 Most Influential Companies, which are “making an extraordinary impact around the world.”

One example of how users interact with Roblox’s digital realm is the recently introduced “Vans World.” The shoe and apparel company focused on action sports sponsored a virtual space dedicated to its products. The immersive experience allowed users to…

 

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