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.
8. Unity Software Inc. (NYSE:U)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 48
Unity Software Inc. (NYSE:U) is an American video game software development company that ranks among the best gaming stocks. The company is best known for Unity, a leading game creation engine used to create video games and other applications. Unity Software Inc. (NYSE:U) offers a suite of tools that help developers create, market, and grow video games and other applications across all major platforms. In October 2024, the company launched Unity 6, the company’s next-gen game development platform with new features including multiplayer workflows, improved graphics capabilities, and tools for mobile web development. The new graphics capabilities move workloads from the CPU to the GPU to improve performance.
The company is focused on innovation and improving developer workflows through new technologies and updates. On March 19, Unity Software Inc. (NYSE:U) announced its plans for three major updates to Unity 6 in 2025, starting with Unity 6.1 in April. This update will enable higher frame rates, smoother gameplay, and reduced CPU/GPU load to deliver better device performance. It will also enhance debugging for easier optimization. Unity Software Inc. (NYSE:U) will expand Unity 6.1’s platform support to include large and foldable Android screens, Meta Quest, Android XR profiles, and Instant Games, with WebGPU for developers on supported browsers. These features will provide developers with more capabilities to create optimized games across diverse platforms.
Later updates in 2025 will help developers leverage AI-driven workflows to create games faster and more efficiently. New AI-powered tools integrated into the Unity Editor will automate repetitive tasks and streamline game creation. Developers will also benefit from the seamless integration of third-party generative AI solutions. The updates will empower developers with efficiency tools that will help improve problem diagnosis, player experience optimization, and new player acquisition.
7. Roblox Corporation (NYSE:RBLX)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) is an American video game company that developed Roblox, an immersive gaming and creation platform. This versatile gaming platform allows users to design, share, and play millions of games created by users. Roblox Corporation (NYSE:RBLX) primarily generates revenue through in-game purchases that use Robux, the platform’s virtual currency. RBLX ranks among the best gaming stocks to buy.
The corporation is actively working to achieve its goal of capturing 10% of global gaming content revenue. Roblox Corporation (NYSE:RBLX) is investing in improving app performance and AI to create a better user experience. In Q4 2024, the company introduced innovative tools like Avatar auto-setup, an AI-powered tool that transforms 3D avatar models into fully functional Roblox avatars with skinning, boning, and facial animation support. Roblox Corporation (NYSE:RBLX) also fully launched Roblox Assistant to enable conversational creation within Roblox Studio. Such initiatives help the company drive higher engagement and grow its platform. Roblox Corporation (NYSE:RBLX) reported that average daily active users reached 82.9 million in 2024, up 21% compared to 2023. Hours engaged in 2024 reached 73.5 billion, up 23% year-over-year.
6. NetEase, Inc. (NASDAQ:NTES)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 38
NetEase, Inc. (NASDAQ:NTES) is a Chinese internet technology corporation that is primarily focused on gaming, education, music, and e-commerce. The company develops and operates a diverse portfolio of popular mobile and PC games for the Chinese market and international markets. According to billionaires, NetEase, Inc. (NASDAQ:NTES) is one of the best gaming stocks to buy.
On February 21, Benchmark analysts raised the firm’s price target on NetEase, Inc. (NASDAQ:NTES) from $105 to $115 and maintained a “Buy” rating. This change followed the company’s Q4 2024 financial report, which showed mixed results. While the revenue fell short of expectations due to weaker mobile gaming performance, NetEase, Inc. (NASDAQ:NTES) managed to exceed profitability forecasts. The revenue miss because of the mobile games segment was partly offset by strong PC game growth, driven by the return of popular Blizzard titles like “World of Warcraft” and “Hearthstone,” continued success of existing games, and new releases. Benchmark analysts are optimistic about NetEase, Inc.’s (NASDAQ:NTES) future, particularly in PC gaming, with the launch of high-profile games like “Marvel Rivals” expected to drive growth in fiscal year 2025. Although mobile games underperformed in Q4 2024, there were early signs of stabilization in deferred revenue. Benchmark analysts now forecast a 6.5% year-over-year increase for NetEase, Inc.’s (NASDAQ:NTES) games segment in FY25, up from the firm’s previous 5% estimate.
5. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Billionaire Investors: 13
Number of Hedge Fund Holders: 67
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American developer, publisher, and marketer of video games primarily through its labels, Rockstar Games, 2K, and Zynga. The company’s games are designed for consoles, PC, and mobile. Some of its most popular product franchises are Grand Theft Auto, Red Dead Redemption, and NBA 2K. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) ranks among the best gaming stocks to invest in.
On February 7, Goldman Sachs analyst Eric Sheridan raised the firm’s price target for Take-Two Interactive Software, Inc. (NASDAQ:TTWO) from $205 to $230 and maintained a “Buy” rating. Sheridan’s revised target is based on the earnings report and the management’s commentary. This update came after the company’s fiscal Q3 2025 earnings report. The company reported strong bookings growth driven by NBA 2K, offsetting weaker performance in the mobile segment. The management expressed confidence in the company’s ability to achieve record levels in fiscal years 2026 and 2027, supported by a robust content pipeline. The management team also highlighted plans to scale intellectual properties and leverage emerging distribution channels for growth. Notably, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) reiterated the anticipated release of Grand Theft Auto VI in fall 2025 and provided solid timelines for other major titles like Mafia and Borderlands, which offered investors clarity on the content schedule.
4. Sea Limited (NYSE:SE)
Number of Billionaire Investors: 17
Number of Hedge Fund Holders: 86
Sea Limited (NYSE:SE) is a major technology corporation headquartered in Singapore. The company is a major player in the gaming and esports industry through Garena, its gaming division. Sea Limited (NYSE:SE) was initially founded as a game development and publishing company and it is best known for its popular Free Fire title, one of the best mobile battle royale games. The company also operates core businesses across e-commerce and digital financial services through Shopee and SeaMoney. Through its Garena segment, the company develops and publishes games and also organizes professional gaming tournaments. Sea Limited (NYSE:SE) ranks among the best gaming stocks to buy.
The company is focused on scaling its user base and enhancing content offerings for its gaming division, Garena. Sea Limited (NYSE:SE) reported that 2024 was a successful year for Garena, particularly with Free Fire’s remarkable comeback. The game’s annual bookings increased by 34% year-over-year. Free Fire also became the world’s largest mobile game by average daily active users (DAUs) and the most downloaded title, according to Sensor Tower. In 2024, Average DAUs grew 28% year-over-year and surpassed 100 million. The game delivered strong engagement and retention even in its eighth year. Sea Limited (NYSE:SE) sees Free Fire as an evergreen franchise and expects Garena to deliver double-digit growth in both its user base and bookings in 2025.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 18
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is an American multinational technology company that has a strong presence in the gaming industry through its graphics processing units (GPUs) and central processing units (CPUs). The company’s Ryzen processors and Radeon graphics cards deliver strong performance and are popular among gamers. AMD’s gaming solutions are used across PCs, consoles, and handhelds. Advanced Micro Devices Inc. (NASDAQ:AMD) ranks among the best gaming stocks to buy.
The company is making strategic moves to capture a larger share of the gaming market by offering new technologies that cater to a broad audience. On January 6, 2025, Advanced Micro Devices Inc. (NASDAQ:AMD) unveiled new processors ahead of CES 2025. These include the Ryzen 9000X3D, Ryzen Z2, and Ryzen 9000HX series, designed for desktop, mobile, and handheld gaming devices. These are powerful and efficient processors that offer exceptional performance for demanding games and creative tasks. Advanced Micro Devices Inc. (NASDAQ:AMD) also introduced its new RDNA 4 architecture, which significantly improves ray tracing capabilities and supports AI-powered upscaling technology to deliver high-quality 4K gaming experiences to mainstream players with the first Radeon 9070 series GPUs. These GPUs were unveiled on February 28, 2025.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a leading American technology company and a major player in the gaming industry, particularly through its powerful graphics processing units (GPUs). Since inventing the GPU in 1999, the company has revolutionized computer graphics and greatly contributed to the growth of PC gaming. Its GeForce line of GPUs is well-regarded among gamers, offering high-performance graphics for immersive gaming experiences. In 2020, NVIDIA Corporation (NASDAQ:NVDA) also launched GeForce NOW, a cloud-based gaming service that allows players to stream games directly from the cloud to devices like laptops, desktops, and smartphones. This makes gaming more accessible and convenient. According to billionaires, NVDA is one of the best gaming stocks to invest in.
The company is actively integrating AI into its products to enhance user experience across gaming, computing, and other industries. In January 2025, NVIDIA Corporation (NASDAQ:NVDA) released the GeForce RTX 50 Series Desktop and Laptop GPUs for gamers, creators, and developers. These new GPS are powered by Blackwell architecture, fifth-generation Tensor Cores, and fourth-generation RT to deliver breakthroughs in AI-driven rendering, including neural shaders, digital human technologies, geometry, and lighting. The GeForce RTX 5090 GPU delivers more than 3,352 trillion AI operations per second (TOPS) of computing power and is the fastest GeForce RTX GPU yet.
The GeForce RTX 50 Series GPUs power autonomous game characters and NVIDIA Corporation (NASDAQ:NVDA) is launching a suite of new ACE technologies that make game characters act more human-like. With generative AI, game characters will be able to perceive, plan, and act like human players. NVIDIA Corporation (NASDAQ:NVDA) is teaming up with leading game developers to incorporate ACE autonomous game characters into titles like PUBG: BATTLEGROUNDS, inZOI, and NARAKA: BLADEPOINT MOBILE PC VERSION.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Billionaire Investors: 39
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company and a major player in the gaming industry. The company is known for its Xbox consoles and gaming services. In October 2023, Microsoft Corporation (NASDAQ:MSFT) completed its $69 billion acquisition of Activision Blizzard to grow its gaming business and bring popular franchises like Call of Duty, Warcraft, and Diablo under its umbrella. This transaction positioned Microsoft Corporation (NASDAQ:MSFT) as one of the largest gaming companies globally and opened new revenue streams across mobile, PC, console, and cloud gaming platforms. MSFT is one of the best gaming stocks to buy.
In October 2024, the company launched Black Ops 6, which became the best-selling game on Xbox and PlayStation for the quarter ending December 31, 2024. This release was described by CEO Satya Nadella as the “biggest Call of Duty release ever.” Additionally, Microsoft Corporation (NASDAQ:MSFT) released Indiana Jones and the Great Circle in December 2024, which has already attracted more than 4 million players. The company is focused on growing its gaming business through content and cloud gaming. For the second quarter of fiscal 2025, ending December 31, 2024, Xbox Cloud Gaming reached a record of 140 million hours streamed. Microsoft Corporation (NASDAQ:MSFT) reported that the Game Pass subscription service also achieved a new quarterly record for revenue and expanded its PC subscriber base by over 30%. The company plans to drive the number of paid subscribers across all platforms.
Overall, MSFT ranks first among the 10 best gaming stocks to invest in according to billionaires. While we acknowledge the potential of gaming 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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