The esports industry is witnessing significant growth and is expected to continue growing. The COVID-19 pandemic fueled the trend of gaming and esports as people turned to online gaming for entertainment and this led to a surge in participation and viewership. In more recent times, the rising demand for video games combined with the rise of live-streaming platforms has continued to support this trend and further boost the growth of the esports industry.
According to a report by The Business Research Company, the global esports market was valued at $2.73 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 21.2% during 2025-2029 to reach a value of $7.03 billion by the end of the forecast period. In 2024, North America was the largest region in the global esports market.
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Other factors that are fueling the industry’s growth include the professionalization of esports and the rise in video gaming competitions around the world. The first-ever Esports World Cup was held in Riyadh, Saudi Arabia in July and August 2024. The event saw more than 1,500 players and included 23 competitions across 22 different video games like Call of Duty and Fortnite. The Esports World Cup in 2024 offered a massive prize pool of $60 million. The event attracted significant attention from sponsors and media and this contributed to the growth of esports globally. According to the Esports World Cup Foundation, the competition will take place annually in Saudi Arabia in Riyadh Boulevard City.
On February 11, the Esports World Cup Foundation announced that the first edition of the Olympic Esports Games will be held in 2027 in Riyadh, Saudi Arabia. The Esports World Cup Foundation has been named a founding partner and will work alongside the International Olympic Committee (IOC) to organize the event. This initiative aims to bridge the gap between esports and traditional sports through nation-based tournaments. The Road to the Games will start in 2025. It seems that esports is on track to become even more popular in the near future.
With that background in mind, let’s take a look at the 10 best esports stocks to buy now.
A crowded esports arena with a team competing in an online network.
Methodology
To compile our list of the 10 best esports stocks to buy now, we looked for the largest video game and esports companies. We also sifted through our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best esports stocks. From an initial list of over 25 stocks, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 10 best esports stocks to buy now were then ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2024.
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10 Best Esports Stocks to Buy Now
10. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 21
Sony Group Corporation (NYSE:SONY) is a Japanese multinational consumer electronics and technology company. Through its Sony Interactive Entertainment subsidiary, the company is a major player in the gaming and esports industry. Sony Group Corporation (NYSE:SONY) is perhaps best known for its iconic PlayStation brand. The company is focused on esports through initiatives like PlayStation Tournaments and the annual EVO fighting game series. SONY is one of the best esports stocks to buy now. In March 2024, Sony Group Corporation (NYSE:SONY) partnered with the Esports World Cup to further its reach in the growing esports market.
The company is strategically focused on expanding its presence in the gaming market, particularly through its PlayStation brand. In December 2024, Sony Group Corporation (NYSE:SONY) reported that the number of monthly active users across PlayStation platforms rose by 5% year-over-year to reach a record 129 million accounts. In the third quarter of fiscal year 2024, which ended on December 31, 2024, total playtime increased by 2% and marked the 7th consecutive quarter of growth. Sony Group Corporation (NYSE:SONY) reported that over 40% of PS5 purchasers during the quarter were new users.
Interestingly, in November 2024, the company launched a beta version of a cloud streaming feature on the PlayStation Portal remote player. This feature allows PS Plus Premium subscribers to stream directly from the cloud servers and play more than 120 PS5 games on the PS Portal without needing a console. Sony Group Corporation (NYSE:SONY) is actively working to enhance the streaming game user experience and strengthen its competitive edge.
9. NetEase Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 32
NetEase Inc. (NASDAQ:NTES) is a Chinese internet technology company that is primarily focused on gaming, music, education, and e-commerce. The company develops and operates a wide variety of popular PC and mobile games for the Chinese market and international markets. NetEase Inc. (NASDAQ:NTES) ranks among the best esports stocks to buy now.
The company is focused on diversifying its gaming portfolio across genres while also expanding globally. In the third quarter of 2024, NetEase Inc. (NASDAQ:NTES) launched various new games to attract more players around the world. These strategic initiatives strengthen the company’s competitive edge across more markets. In July 2024, NetEase Inc. (NASDAQ:NTES) launched Naraka: Bladepoint mobile game which gained significant popularity and reached No. 4 on the iOS grossing chart after its September 2024 seasonal update. This game addresses the growing player demand for action-based player-versus-player (PVP) games. Additionally, in August 2024, NetEase Inc. (NASDAQ:NTES) launched Racing Master in Japan, which topped the App Store and Google Play free-to-play charts in the country.
To further strengthen its diversified portfolio of games, NetEase Inc. (NASDAQ:NTES) revealed that it is working on a number of exciting titles, including Destiny: Rising, MARVEL Mystic Mayhem, and Where Winds Meet.
8. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 35
Unity Software Inc. (NYSE:U) is an American video game software development company. The company offers a variety of tools to create, market, and grow video games and other applications across all major platforms from mobile, PC, and console, to augmented and virtual reality devices. With the world’s leading game creation engine, Unity Software Inc. (NYSE:U) plays a key role in the gaming and esports industry.
The company is focused on innovation and providing game developers with tools that allow them to build games quickly and efficiently. In October 2024, Unity Software Inc. (NYSE:U) announced the global launch of Unity 6, the company’s next-gen game development platform that delivers improved performance and stability. This best-performing version of the Unity engine has new features including multiplayer workflows, improved graphics capabilities, and tools for mobile web development. These new features move workloads from the CPU to the GPU to improve performance. Unity Software Inc. (NYSE:U) aims to ensure that Unity 6 will remain central to game development in the near future.
7. Take-Two Interactive Software Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 46
Take-Two Interactive Software Inc. (NASDAQ:TTWO) is an American video game holding corporation that develops and publishes products primarily through its well-known labels Rockstar Games, 2K, and Zynga. Some of the company’s most popular product franchises are Grand Theft Auto, Red Dead Redemption, and NBA 2K. Take-Two Interactive Software Inc. (NASDAQ:TTWO) is one of the best esports stocks to invest in.
On February 7, Bank of America Securities analyst Omar Dessouky reiterated a Buy rating on Take-Two Interactive Software Inc. (NASDAQ:TTWO) with a price target of $210. Dessouky’s positive outlook is based on a combination of factors that highlight TTWO’s current performance and future potential. The company reported net bookings in line with expectations for the fiscal third quarter of 2025, which ended on December 31, 2024. This achievement was driven by the success of NBA 2K, which has seen increased consumer spending and user engagement because of gameplay enhancements. Take-Two Interactive Software Inc. (NASDAQ:TTWO) has reaffirmed the timeline for GTA 6 and this should remove investor concerns about any delays. Dessouky is also confident in the company’s future releases as Take-Two Interactive Software Inc. (NASDAQ:TTWO) affirmed other key titles like Borderlands and Mafia.
6. Electronic Arts Inc. (NASDAQ:EA)
Number of Hedge Fund Holders: 46
Electronic Arts Inc. (NASDAQ:EA) is an American video game company that develops, publishes, and distributes a variety of games, content, and online services for consoles, mobile devices, and personal computers. The company has a portfolio of popular franchises including EA SPORTS FC, Battlefield, Apex Legends, The Sims, EA SPORTS Madden NFL, Need for Speed, Plants vs. Zombies, and EA SPORTS F1. Electronic Arts Inc. (NASDAQ:EA) is one of the best esports stocks to buy according to hedge funds.
In the earnings call for the third quarter of the company’s fiscal year 2025, which ended December 31, 2024, Electronic Arts Inc. (NASDAQ:EA) reported that FC started the quarter strong and saw increased preorders, engagement, and player monetization, which led to double-digit net booking growth in October 2024. However, this momentum failed to last through the quarter due to softer-than-expected engagement later in Q3 2025. As a response to this, Electronic Arts Inc. (NASDAQ:EA) made significant changes to the gameplay and rewards. The update went live on January 16, before the launch of the Team of the Year event. The gameplay update and the Team of the Year event helped Electronic Arts Inc. (NASDAQ:EA) reactivate over 2 million Ultimate Team players. The company has also reported high player retention.
On February 5, JPMorgan analyst Cory Carpenter raised the price target for Electronic Arts Inc. (NASDAQ:EA) to $125 from $115 while maintaining a Neutral rating. The analyst noted that the company “provided much-needed clarity” on recent challenges with FC. The company’s management expressed optimism that FC bookings have returned to growth after the well-received gameplay changes and the annual Team of the Year update.
To meet the changing expectations of the gaming community, the company has shifted its focus to updating and fine-tuning the gameplay and its programs. Electronic Arts Inc. (NASDAQ:EA) also unveiled Battlefield Labs, an initiative that allows player-driven testing and innovation ahead of the franchise’s expected fiscal year 2026 launch.
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 52
Roblox Corporation (NYSE:RBLX) is an American video game developer that is known for its versatile gaming platform that allows users to design, share, and play games made by other users. The platform, Roblox, gives free access to millions of games and Roblox Corporation (NYSE:RBLX) generates revenue through in-game purchases that use its virtual currency, Robux. Dubit, a game studio focused on the Metaverse and esports, raised $8 million in 2021 for the first live esports league in the Metaverse on Roblox. Additionally, Roblox Corporation (NYSE:RBLX) hosts numerous community-run esports tournaments on its platform.
The company is making strategic moves to achieve its ambitious target of reaching 10% of the global gaming content revenue. Roblox Corporation (NYSE:RBLX) is investing in its virtual economy, app performance, and AI-powered discovery and safety to enhance the user experience. In Q4 2024, Roblox Corporation (NYSE:RBLX) launched Avatar auto-setup, an AI-powered tool that takes 3D avatar models and turns them into fully functional Roblox avatars with skinning, boning, and facial animation support. During the quarter, the company also fully launched Roblox Assistant to allow conversational creation within Roblox Studio. Roblox Corporation (NYSE:RBLX) expanded its platform availability by launching on PlayStation and it is continually looking to introduce its platform to new audiences.
All of these initiatives are aimed at driving higher engagement to help the platform grow. For the full year 2024, Roblox Corporation (NYSE:RBLX) reported that average daily active users were 82.9 million, up 21% year-over-year, while hours engaged reached 73.5 billion, up 23% year-over-year.
4. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 58
Sea Limited (NYSE:SE) is a major technology corporation that has a strong presence in the global esports industry through its gaming division, Garena. Based in Singapore, it was founded as a game development and publishing company. Sea Limited (NYSE:SE) is known for its popular Free Fire title, which is one of the top mobile battle royale games. Through its Garena division, the company also organizes esports events that range from local grassroots tournaments to major professional events.
SaltLight Capital, an investment management company, in its “SaltLight SNN Worldwide Flexible FR Fund” third quarter 2024 investor letter highlighted Sea Limited (NYSE:SE) and its successful Free Fire title. The letter noted that Free Fire has an impressive 648 million quarterly active users and 53 million paying players who spend an average of $42 annually. The large audience is attributed to the game design which allows it to be played on lower-specification phones, which are common in emerging markets.
The investment management firm noted that Sea Limited’s (NYSE:SE) Free Fire is a profitable business. The Q3 2024 investor letter pointed out that over the last 12 months, Sea Limited (NYSE:SE) generated $1 billion in EBITDA with 50% margins. SaltLight Capital believes that Free Fire is a phenomenal business that has the ability to grow without significant capital expenditure.
In Q3 2024, Sea Limited (NYSE:SE) reported that Free Fire had more than 100 million daily active users throughout the quarter. This represented an impressive 25% year-on-year growth. Sea Limited (NYSE:SE) also held a major e-sports tournament in Morocco that saw thousands of teams participating and attracted millions of views on social media.
3. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices Inc. (NASDAQ:AMD) is a global technology company that powers the gaming and esports industry by designing and manufacturing graphics processing units (GPUs) and central processing units (CPUs). The company’s solutions and gaming products are used in PCs, consoles, and handhelds. Advanced Micro Devices Inc.’s (NASDAQ:AMD) Ryzen processors and Radeon graphics cards are known for delivering strong performance and have gained popularity in gaming and esports. AMD ranks among the best esports stocks to buy.
On January 6, Advanced Micro Devices Inc. (NASDAQ:AMD) announced new products in desktop, mobile and handheld gaming. Ahead of CES 2025, the company unveiled AMD Ryzen 9000X3D, Ryzen Z2, and Ryzen 9000HX processors. These powerful and efficient processors offer incredible performance for the most demanding games.
The company is focused on addressing the esports and gaming market with its new RDNA 4 architecture. The RDNA 4 architecture will deliver significantly better ray tracing performance and support AI-powered upscaling technology to bring high-quality 4K gaming to mainstream players with the first Radeon 9070 series GPUs. Advanced Micro Devices Inc. (NASDAQ:AMD) will be looking to capture a larger share of the market with these GPUs that are expected to be available in early March.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is an American technology company that plays a crucial role in the esports industry through its powerful graphics processing units (GPUs). Since the invention of the GPU in 1999, the company has revolutionized computer graphics and powered the growth of PC gaming. NVIDIA Corporation’s (NASDAQ:NVDA) GeForce line of GPUs provides high-performance graphics and is particularly popular among professional gamers. In 2020, the company also launched GeForce NOW, a cloud-based gaming service that lets players stream games directly from the cloud to various devices, including desktops, laptops, and smartphones. NVDA is one of the best esports stocks to buy.
In the gaming industry, NVIDIA Corporation’s (NASDAQ:NVDA) strategy is focused on integrating AI to enhance gaming experiences. On January 6, the company unveiled the GeForce RTX 50 Series Desktop and Laptop GPUs for gamers, creators, and developers. Powered by the Blackwell architecture, fifth-generation Tensor Cores, and fourth-generation RT, these advanced GPUs deliver breakthroughs in AI-driven rendering, including neural shaders, digital human technologies, geometry, and lighting. The GeForce RTX 5090 GPU is the fastest GeForce RTX GPU to date and it delivers over 3,352 trillion AI operations per second (TOPS) of computing power.
The company’s GeForce RTX 50 Series GPU’s power autonomous game characters alongside game rendering. NVIDIA Corporation (NASDAQ:NVDA) is introducing a suite of new ACE technologies that bring game characters to life with generative AI and allow game characters to perceive, plan, and act like human players. The company is partnering with leading game developers to incorporate ACE autonomous game characters into titles such as PUBG: BATTLEGROUNDS, inZOI, and NARAKA: BLADEPOINT MOBILE PC VERSION.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is an American technology company that ranks among the best esports stocks to buy now. Thanks to its Xbox consoles and gaming services, the company is a major player in the global esports market. In October 2023, Microsoft Corporation (NASDAQ:MSFT) acquired Activision Blizzard for approximately $69 billion. This move significantly enhanced the company’s standing in the esports industry and brought popular franchises like Call of Duty, Warcraft, and Diablo under its umbrella.
The company is strategically focused on improving the profitability of its gaming business through higher-margin content and platform services. In October 2024, Microsoft Corporation (NASDAQ:MSFT) launched Black Ops 6, which became the top-selling game on Xbox and PlayStation for the quarter that ended December 31, 2024. Satya Nadella, Chairman and CEO of Microsoft Corporation (NASDAQ:MSFT) said that this was the “biggest Call of Duty release ever.”
The company has reported positive results from its focus on content and cloud gaming. Released in December 2024, Indiana Jones and the Great Circle has also been well-received and it has already been played by over 4 million people. In Q2 of its fiscal year 2025, which ended December 31, 2024, Microsoft Corporation (NASDAQ:MSFT) reported that Xbox Cloud Gaming reached a record 140 million hours streamed. Additionally, the company is looking to drive the number of fully paid subscribers across all platforms. Game Pass achieved a new quarterly record for revenue and managed to grow its PC subscriber base by more than 30%.
Overall, MSFT ranks first among the 10 best esports stocks to buy now. While we acknowledge the potential of esports companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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