10 Best Video Game Stocks to Buy Now

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is a technology company and the largest software producer in the world by revenue. It is the creator of the Xbox gaming console and owns a number of video gaming franchises. The company reported $69.6 billion in revenue in fiscal Q2 2025, up 12%. Its gross margin dollars grew 13% and 12% in constant currency while operating income increased 17% and 16% in constant currency. Earnings per share also experienced a 10% growth, reaching $3.23. These strong results were attributed to the strong demand for Microsoft Corporation’s (NASDAQ:MSFT) cloud and AI offerings.

Microsoft Corporation (NASDAQ:MSFT) expanded its gaming portfolio by completing the $69 billion mega-acquisition of major video game publisher Activision Blizzard (ATVI) in October 2023. It is further focusing on improving the profitability of its gaming business by positioning it for long-term growth driven by higher-margin content and platform services. It is making strides in this plan, with Black Ops 6 taking the spot as the top-selling game in fiscal Q2 2025, with more players in its launch quarter than any other paid release in the franchise’s history.

The company is also continuing to see strong momentum for Xbox Cloud Gaming, with a record 140 million hours streamed in fiscal Q2 2025. In addition, its All-up Game Pass set a new quarterly record for revenue and grew its PC subscriber base by over 30%. Microsoft Corporation (NASDAQ:MSFT) expects revenue for the Gaming segment to be in the low-single-digits in the future, with Xbox content and services revenue growth to be in the low to mid-single-digits driven by first-party content as well as Xbox Game Pass.

Overall, MSFT ranks first among the 10 best video game stocks to buy now. While we acknowledge the potential of video game stocks, our conviction lies in the belief that 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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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