12 Best Metaverse Stocks to Invest in

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) stands as a global tech giant with diverse operations across software, cloud services, enterprise solutions, gaming, and hardware. In the metaverse space, the company is making waves through Azure cloud offerings, AI platforms like Copilot Studio, and immersive products such as HoloLens and Xbox Cloud Gaming. These tools create the foundation for virtual teamwork, content development, and digital worlds.

For Q2 FY2025 ending December 31, 2024, the company recorded $69.6 billion in revenue, up 12% from last year. Meanwhile, operating income rose by 17%, and the cloud division hit a record $40.9 billion, growing 21%, with Azure services specifically up 31%. Moreover, AI services notably drove 13 points of Azure’s growth, and Microsoft’s business software segment increased 14% to $29.4 billion, pushed by Microsoft 365 and Dynamics 365 success. Yet free cash flow dropped 29% to $6.5 billion due to heavy capital spending.

Microsoft Corporation (NASDAQ:MSFT) keeps boosting its AI metaverse capabilities through Copilot, now used by over 160,000 organizations. On the other hand, Azure AI skyrocketed 157% year-over-year, and GitHub reached 150 million developers. Additionally, Xbox Cloud Gaming hit record usage with 140 million hours streamed that quarter. At the same time, Microsoft Fabric and Power BI also grew strongly, showing the company’s dominance in cloud data and analytics, crucial for creating immersive experiences.

Microsoft Corporation (NASDAQ:MSFT) is expected to continue using its cloud scale and AI infrastructure to drive metaverse integration. Furthermore, the company expects double-digit growth in both revenue and operating income, with improving margins.

Although it did face some hurdles in non-AI Azure offerings, LinkedIn hiring solutions, and gaming hardware, Microsoft Corporation (NASDAQ:MSFT) remains one of the best metaverse stocks because of its strong position in digital productivity, AI, and immersive platform development.

Overall, Microsoft Corporation (NASDAQ:MSFT) ranks first on our list of the 12 Best Metaverse Stocks to Invest in. While we acknowledge the potential of MSFT, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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