The gaming industry has experienced significant changes over the past few years. During the COVID-19 pandemic, the sector saw remarkable growth as more people spent time indoors. However, this momentum did not continue after restrictions eased, which led to lower consumer spending on games and consoles. Economic uncertainties and challenges like inflation further impacted the industry, resulting in layoffs, studio closures, and project cancellations across the industry in 2024. Despite these setbacks, analysts are optimistic about a recovery supported by upcoming major releases.
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According to research firm Newzoo, video game consoles are expected to be the biggest growth driver in the market until 2027. The anticipated launches of GTA VI in fall 2025 and the new Switch console in summer 2025 are seen as key factors fueling a rebound. GTA V, the predecessor to GTA VI, is one of the most profitable games ever and has sold over 210 million by December 2024. Analysts believe new releases will encourage players to spend more on consoles and games. This could potentially reverse the industry’s recent slowdown.
According to the report by Newzoo, console software revenue is projected to increase 7% from 2024 to 2027 and outperform PC software revenue growth of 2.6%. By 2027, console revenue is expected to account for over 56% of the total PC and console software revenue of $92.7 billion. Total playtime increased by 6% in 2024 and Q4 saw the highest quarterly playtime thanks to blockbuster releases like the new Call of Duty title.
Emmanuel Rosier, director of market analysis at Newzoo, told Reuters that major console titles, such as Spider-Man and God of War, are driving engagement on consoles. He also pointed out that these AAA or AAAA releases have less impact on PC gamers, who prefer older titles.
With this background in mind, let’s take a look at the 10 best gaming stocks to invest in according to billionaires.
Our Methodology
To compile our list of the 10 best gaming stocks to invest in according to billionaires, we looked for the largest gaming companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gaming stocks. Next, we focused on the top 10 gaming stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best gaming stocks to invest in were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Gaming Stocks to Invest In According to Billionaires
10. Electronic Arts Inc. (NASDAQ:EA)
Number of Billionaire Investors: 8
Number of Hedge Fund Holders: 45
Electronic Arts Inc. (NASDAQ:EA) is an American digital interactive entertainment company that specializes in developing, publishing, and distributing a variety of games, content, and online services for gaming consoles, mobile devices, and PCs. The company is best known for its portfolio of popular franchises including EA SPORTS FC, Battlefield, Apex Legends, The Sims, EA SPORTS Madden NFL, Need for Speed, Dragon Age, Plants vs. Zombies, and EA SPORTS F1. Electronic Arts Inc. (NASDAQ:EA) ranks among the best gaming stocks to invest in according to billionaires.
On March 24, Benchmark analyst Mike Hickey raised the price target for Electronic Arts Inc. (NASDAQ:EA) to $160 from $140 and maintained a “Buy” rating. Hickey believes that a potential delay in GTA VI could benefit the company. If GTA VI is postponed to early 2026, Electronic Arts Inc. (NASDAQ:EA) could dominate the fourth quarter of 2025 without competition. This period is critical for game releases and less competition would allow the company’s Battlefield series to gain more attention during the holiday season. Hickey highlighted that Rockstar’s extended development time for GTA VI could reduce the need for excessive crunch, a practice that is criticized in the gaming community. This could lead to a higher-quality game, which can boost long-term sales. He also praised Electronic Arts Inc.’s (NASDAQ:EA) Battlefield Labs initiative for building community excitement and sees it as a strategic advantage if GTA VI’s release is delayed. Hickey stressed that any postponement, even a small one, will provide Electronic Arts Inc. (NASDAQ:EA) with a major opportunity to lead the market with its Battlefield series.
9. Playtika Holding Corp. (NASDAQ:PLTK)
Number of Billionaire Investors: 9
Number of Hedge Fund Holders: 32
Playtika Holding Corp. (NASDAQ:PLTK) is an Israeli digital entertainment and technology company that focuses on developing and publishing mobile games. The company has a strong portfolio of multiple game titles that attract over 20 million monthly active users. Playtika Holding Corp. (NASDAQ:PLTK) ranks among the best gaming stocks to buy.
On March 26, Bank of America Securities upgraded the rating for Playtika Holding Corp. (NASDAQ:PLTK) from “Underperform” to “Buy” and raised its price target from $6 to $6.50. This change came amid a recognition of the company’s strong profitability and leadership in the mobile gaming industry. Analyst Omar Dessouky noted that Playtika Holding Corp. (NASDAQ:PLTK) boasts the industry’s highest profitability with impressive 30% EBITDA margins. He also highlighted the company’s position as the largest direct-to-consumer platform in the industry and that it has three of the largest and longest-running franchises in mobile gaming history. Dessouky pointed out that the mobile gaming sector, while mature, is still growing. BofA expects that the mobile gaming industry will grow at an annual rate of at least 4% for the foreseeable future. After analyzing data from January and February, BofA also increased its 2025 revenue and profit estimates for Playtika Holding Corp. (NASDAQ:PLTK) to $2.85 billion and $740 million, respectively.
