In this article, we will discuss the 12 Best Metaverse Stocks to Invest in.
The metaverse, which comes under the video games industry, is a fast-growing digital frontier where immersive tech creates interactive virtual worlds. It is built on virtual reality (VR), augmented reality (AR), blockchain, and mixed reality, offering simulated spaces for socializing, working, learning, and playing. Essentially, it blends digital and physical realities to provide customized and immersive experiences via avatars, live communication, and spatial computing. Users no longer just browse static web pages – they move through dynamic 3D environments that mirror and enhance real-world interactions, marking a shift from simple apps to fully immersive virtual spaces. Metaverse is segmented into four types: lifelogging, augmented reality, mirror world, and virtual reality.
The metaverse grows mainly by combining content streaming and blockchain infrastructure, where blockchain has improved secure transactions, digital asset ownership, and governance. These systems support user-driven economies where people build, sell, and profit from digital experiences, similar to Roblox. At the same time, the rise of 3D platforms, virtual markets, and gaming worlds drives investment.
In 2024, the global video streaming market—crucial for immersive media—hit $674.25 billion. The Business Research Company reports that the global metaverse market is predicted to grow from $227.05 billion in 2024 to $316.34 billion in 2025, with a strong 39.3% CAGR. Whereas, S&P Global Market Intelligence predicts that global metaverse revenue will climb from $17.5 billion in 2023 to $54.5 billion by 2028, growing at a 25.5% CAGR. Businesses became the main customer segment, driven by the need for digital twin software and remote collaboration tools. According to S&P, these businesses strengthened their position in 2023, accounting for 42.8% of the entire metaverse market. As major companies expand virtual platforms and adopt faster streaming, metaverse services strengthen across industries.
Moreover, social media and mobile internet have sped up the growth of the virtual ecosystem. With over 2.4 billion users on Meta (previously Facebook) and billions more on WhatsApp and YouTube, the digital world is more connected than ever. The line between digital and physical life keeps blurring as many daily activities—hanging out, entertainment, shopping—are already happening in early metaverse settings. This has sparked the development of virtual learning, workplace collaborative tools, and blockchain-based gaming economies. According to NewGenApps, VR and AR gaming is set to reach 216 million players worldwide by 2025, with a market worth $11.6 billion. Markedly, a 2024 survey revealed that 34% of game developers globally are creating titles for the Meta Quest Store, a digital marketplace, showing strong developer interest in immersive gaming platforms.
Furthermore, generative AI is reshaping the next phase of the metaverse, ranging from custom content suggestions to auto-dubbing, editing, and better visuals. Streaming platforms now use large language models like GPT-4 to create real-time content and ensure moderation, making digital interactions safer and more accessible. Although the broader metaverse is still under development, technologies powering virtual economies—such as play-to-earn games, NFT marketplaces, and digital event tickets—already create income opportunities for users and developers. The Entertainment Software Association reported that 227 million Americans play video games every week, with an average age of 31. This shows a growing mainstream adoption of immersive content across different age groups. The combination of AI with VR/AR is helping platforms expand beyond gaming and entertainment into healthcare and business applications.
As users want more personalized, high-resolution experiences, metaverse tech is advancing on low-latency infrastructures. Platforms like hesp.live are changing streaming with super-fast delivery for gaming, education, and live shopping. Initially, the metaverse faced a lot of backlash due to a not-so-appealing experience and inability to connect with users. Despite less public buzz after 2022, progress hasn’t stopped—the metaverse is young, with ongoing improvements pushing it forward. These advances, plus the growing demand for video-on-demand services, show how deeply the metaverse fits into digital viewing habits. As North America leads the market, with major players and high digital spending, Asia Pacific is also set for future growth due to the quick adoption of immersive tech.
This shows that the metaverse isn’t just a passing trend—it is a fundamental shift changing how people live, talk, and connect in digital spaces. As immersive environments disrupt traditional media, the metaverse is becoming a promising investment. With this, let’s now look at 12 of the best metaverse stocks to invest in, focusing on companies driving innovation, platform development, and infrastructure growth in this transformative space.
Photo by mahdis mousavi on Unsplash
Our Methodology
To compile our list of the 12 Best Metaverse Stocks to Invest in, we first conducted extensive research to identify companies with significant exposure to the metaverse technology. First, we used stock screeners, ETFs, and online rankings to make an extended list of the relevant companies. Then, we extracted the number of hedge fund holders having a stake in the respective companies as of Q4 2024, using data from Insider Monkey’s hedge fund database. The finalists are stocks with the highest hedge fund interest.
Why are we interested in the stocks that hedge funds pile into? 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).
12. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 55
Unity Software Inc. (NYSE:U) offers a platform for creating 3D and 2D interactive content across gaming, mobile, PC, XR, and industrial apps. As a key tech partner for immersive environments, Unity helps build metaverse experiences and digital twins. Mainstream companies, including Meta, use Unity’s technology for its XR package, showing its importance in the metaverse world. In addition, the company’s tools help developers create AI-enabled environments with built-in user acquisition and monetization features. The success of its products makes Unity Software one of the best metaverse stocks.
Unity Software Inc. (NYSE:U) beat expectations in Q4, ending December 31, 2024, with $442 million in strategic portfolio revenue, an increase of 4% from last year. Furthermore, adjusted EBITDA hit $106 million with a 23% margin, and free cash flow more than doubled to $106 million in Q4, reaching $286 million for the full year. Subscription revenue grew 15%, and industry segment revenue jumped 50%, making it Unity’s fastest-growing business. Moreover, the new Unity 6 engine gained traction with 2.8 million downloads and quick user adoption.
Although Grow Solutions saw just 2% growth to $303 million, Unity is shifting to its new AI-powered platform, “Unity Vector.” The first phase rollout should finish by Q2 2025, aiming at improving target precision and boosting ad performance through self-learning models. Meanwhile, Unity continues to power about 70% of top mobile games and 30% of top PC games, keeping its strong market position.
For Q1 2025, Unity Software Inc. (NYSE:U) expects revenue between $405-$415 million and an adjusted EBITDA of $60-$65 million. For now, the advertisement business faces short-term challenges, although Unity continues to focus on AI, XR, and industrial uses to broaden its market appeal. Clients like Toyota and Raytheon highlight the growing demand from businesses beyond the gaming sector.
11. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 55
Cloudflare, Inc. (NYSE:NET) provides cloud-based security, networking, and developer services that build secure, scalable digital infrastructure across the internet. As a central player in Web3 technologies, Cloudflare supports the metaverse through Ethereum and IPFS gateways, forming a backbone for decentralized networking. With their global content delivery network, Zero Trust security, and edge computing, the company builds infrastructure for immersive virtual environments. This establishes the company’s leading position in the metaverse space, making it one of the best metaverse stocks.
For Q4 ending December 31, 2024, revenue for Cloudflare, Inc. (NYSE:NET) hit $459.9 million, up 27% from last year, fueled by strong customer growth and enterprise adoption. Operating income jumped 69% to $67.2 million, with margins improving by 360 basis points to 14.6%. On the other hand, the diluted EPS reached $0.19, or $0.22 without tax elections, while free cash flow stood at $47.8 million (10% of revenue), showing good operational leverage.
Furthermore, Cloudflare, Inc. (NYSE:NET) closed the quarter with 3,497 large customers, up 27% year-over-year, generating 69% of total revenue. Customers spending over $1 million grew by 47%, while net retention rose to 111%. Additionally, sales growth came from two key areas: experienced account executives hitting targets (10% more reached 80% of quota) and strategic hiring (80% of new people focused on large companies). Moreover, a strong net sales capacity sets them up for better performance in 2025.
In AI, Cloudflare, Inc. (NYSE:NET) focuses on inference rather than training, leveraging its edge platform’s efficiency. The Workers AI and Workers platform reached 3 million developers, with high adoption for AI agents. The company now offers flexible “pool of funds” contracts to make AI adoption easier. Furthermore, major achievements like FedRAMP High certification boost Cloudfare’s standing in regulated markets.
For 2025, Cloudflare, Inc. (NYSE:NET) projects revenue of around $2.09 billion, a 25% growth, and an operating income of $272-$276 million. For Q1 2025, revenue is predicted at $468-$469 million, and network capital expenditure is expected to increase 12-13% of revenue to support growth. With growing enterprise reach, AI focus, and a recurring sales model, Cloudflare is set to benefit from the rising demand for secure, low-latency digital infrastructure.
10. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) runs a 3D platform where users can connect, communicate, and create. The company offers the Roblox Client for exploring virtual worlds, Studio for making content, and Cloud for real-time support. Thus, Roblox stands out in the metaverse through user-created experiences, social features, and partnerships with brands and creators, cementing its role in advancing immersive 3D content. As a result, it is ranked among the best metaverse stocks.
For Q4 ending December 31, 2024, Roblox Corporation (NYSE:RBLX) posted $988 million in revenue, growing 32% year-over-year and exceeding the company’s guidance. Bookings hit $1.36 billion, an increase of 21% from the previous year. Daily users jumped 19% to 85.3 million, with over 61% being 13 or older; furthermore, people spent 18.7 billion hours on the platform, which is a 21% increase. Free cash flow shot up 54% to $120 million in Q4, while yearly free cash flow reached $641 million (five times higher than in 2023).
Roblox Corporation (NYSE:RBLX) keeps growing as it shared $922 million with creators in 2024 through DevEx, up 25% from last year. The company made improvements with real-time pricing, a customizable avatar marketplace, and enhanced monetization through platform-specific Robux incentives. The company’s success also came from expanding content variety with major IP-based activations and breakout experiences like “NFL Universe” and “SpongeBob” gaining traction.
Looking forward, Roblox aims to host 10% of global gaming content, up from today’s 2.4%. The company plans to improve live 3D streaming, cross-device access, and AI creation tools. For Q1 2025, Roblox is expected to bring AI text generation, with 3D AI features following in Q2. Despite economic uncertainties, Roblox Corporation (NYSE:RBLX) is focused on operational efficiency, reliable infrastructure, and growing users through innovation and partnerships.
9. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 74
Autodesk, Inc. (NASDAQ:ADSK) stands as one of the best metaverse stocks through its robust and advanced 3D design tools that are used for modeling, visualization, and designing. These tools influence digital twin technology, immersive architecture projects, and real-time collaboration. The company’s portfolio includes software like AutoCAD, Revit, Maya, and Fusion, enabling virtual world creation, making it one of the best metaverse stocks. These programs serve the construction, engineering, manufacturing, and entertainment industries, as they are essential components for building the metaverse. Autodesk’s cloud tools, like BIM Collaborate Pro, Tandem, and Flow Production Tracking, bridge physical and digital assets, promoting immersive design across industries.
For the fiscal quarter ending January 31, 2025, Autodesk, Inc. (NASDAQ:ADSK) posted impressive results with $2.29 EPS, beating the $2.14 estimate. Furthermore, revenue grew 12% year-over-year, while billings jumped 24% in constant currency. The company generated $1.57 billion in free cash flow for the year, exceeding targets. Autodesk also bought back 1.4 million shares for $414 million in Q4 alone and 3.1 million shares worth $858 million during the full fiscal year.
Additionally, Autodesk, Inc. (NASDAQ:ADSK) announced plans to streamline its sales approach and shift resources toward digital automation and AI development, speeding up strategic priorities. The company’s construction segment performed well, with 15% growth and 400 new customers in Q4. The new AutoConstrain tool in Fusion highlights Autodesk’s commitment to AI for better design efficiency and user experience.
For the future, Autodesk, Inc. (NASDAQ:ADSK) expects FY2026 non-GAAP operating margins of 39-40%, with significant GAAP margin improvements after restructuring. Although the company moved away from its previous growth model, it still forecasts 8-9% revenue growth. With free cash flow projected between $2.075-2.175 billion and plans to increase share buybacks by 30-40%, Autodesk aims to maintain value while expanding digital capabilities aligned with metaverse trends.
8. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 79
Accenture plc (NYSE:ACN) provides global professional services in strategy, consulting, technology, and operations across industries worldwide. It offers enterprise metaverse consulting services to help clients create new connections and consumption methods, positioning them as leaders in virtual experience development. The company’s services include AI, cloud infrastructure, security, and digital creative work, along with Accenture Song, its digital creative group. Accenture’s investments in immersive tech and digital twins match growing enterprise metaverse demand, establishing the company’s stock as one of the best metaverse stocks.
For Q2 FY2025 ending February 28, 2025, Accenture plc (NYSE:ACN) posted $16.7 billion in revenue, 8.5% growth in local currency, hitting the high end of projections. The company’s EPS was at $2.82, beating expectations slightly, with a 13.5% operating margin (down 0.2% from last year). New bookings reached $20.9 billion, creating a strong 1.3 book-to-bill ratio. Consulting revenue boosted 6%, while managed services jumped 11%, with Accenture Song, cloud, and security all seeing double-digit gains.
Furthermore, Accenture plc (NYSE:ACN) posted that GenAI revenue hit $600 million in Q2 alone, pushing first-half FY25 GenAI revenue to $1.1 billion—already beating full-year FY24 figures. The company secured $1.4 billion in new GenAI deals and expanded its data/AI workforce to 72,000 people. Accenture’s Industry X division also performed well, highlighting its strength in combining physical and digital operations.
Although most sectors performed well, U.S. federal business faced delays as the new administration reviewed spending. Federal contracts make up 8% of Accenture’s global and 16% of its Americas revenue. Still, management raised its full-year outlook’s lower end, now expecting 5-7% local currency revenue growth and similar EPS gains. Accenture plc (NYSE:ACN) plans to spend $2-3 billion on acquisitions this year to boost platform capabilities.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs semiconductors, including CPUs, GPUs, AI chips, and SoCs for data centers, PCs, gaming consoles, etc., serving various markets globally. The company expanded its metaverse infrastructure role through a partnership with Meta Platforms to develop metaverse-ready radio systems using Xilinx Zynq UltraScale RFSoC chips. This supports Meta’s Evenstar program, which aims to bring 4G/5G networks to underserved areas, creating the connectivity foundation needed for immersive digital experiences. This strong presence in the industry makes it one of the best metaverse stocks.
For Q4 ending December 31, 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted record revenue up 24% year-over-year, with full-year revenue hitting $25.8 billion, a rise of 14%. Net income boosted 26%, while free cash flow more than doubled from 2023. Moreover, data centers now generate nearly half of the company’s annual revenue, with AI-related data center sales topping $5 billion. AMD’s earnings per share reached $1.09, slightly above expectations. The company’s growth comes from gaining market share in server CPUs and client processors, plus strong demand for MI300X AI accelerators.
Additionally, the company’s Q4 Data Center revenue reached a record $3.9 billion, jumping 69% year-over-year as AI adoption accelerated. Advanced Micro Devices, Inc. (NASDAQ:AMD) launched the MI325X and began sampling the MI350 series. Client revenue surged 58%, and AMD secured its first full PC portfolio deal with Dell. In contrast, gaming revenue fell 59% due to predicted semi-custom adjustments. Even when embedded revenue dropped 13%, AMD won a record $14 billion in design wins over the year.
For Q1 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) expects about $7.1 billion in revenue and projects double-digit EPS growth for the full year. The company aims to grow its AI business into a “tens of billions” opportunity in the coming years. With upcoming Radeon GPUs, better AI accelerators, and continued leadership in high-performance computing, AMD is cementing its position as a key metaverse technology provider. The company powers immersive rendering, real-time simulation, and AI-enhanced virtual worlds.
6. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 108
The Walt Disney Company (NYSE:DIS) leads the global entertainment industry with operations in three sectors: Entertainment, Sports, and Experiences.
The company is growing its digital footprint through a game-changing partnership with Epic Games. It is building what could become one of the largest social metaverses and entertainment spaces ever created. This virtual world will feature beloved Disney brands like Pixar, Marvel, and Star Wars, all running on Unreal Engine. Meanwhile, Disney invested $1.5 billion for an equity stake in Epic Games in 2024, establishing Disney as a major player in the emerging metaverse space, especially in entertainment and social interaction.
For Q1 FY2025 ending December 31, 2024, The Walt Disney Company (NYSE:DIS) beat expectations with an EPS of $1.76, well above the $1.45 estimate. The company’s film studios led the way, producing the three highest-grossing global movies of 2024. In addition, Disney also saw growth in streaming profits and record ESPN viewership. Furthermore, the company’s Experiences division performed above expectations, further boosting its quarterly results.
Despite economic uncertainty, The Walt Disney Company (NYSE:DIS) is streamlining costs, reducing its 2025 content budget from $24 billion to $23 billion. Meanwhile, management expects high single-digit earnings growth for the full year, following Q1’s impressive 40% year-over-year earnings jump. The Experiences segment is projected to grow 6-8% for the year, driven by cruise expansion and favorable comparisons in the second half.
The Walt Disney Company (NYSE:DIS) is also working on multiple DTC enhancements, including its streaming services with password-sharing controls, international ad-tier expansion, and app improvements. The company’s ESPN Flagship service will launch in Fall 2025, offering bundled access with Disney+ and Hulu. While streaming remains highly competitive, Disney’s content innovation and comprehensive sports coverage position it for continued subscriber and profit growth into 2026, allowing it to rank among the best metaverse stocks.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 117
Adobe Inc. (NASDAQ:ADBE) works in digital creativity, customer experience, and publishing through three main segments: Digital Media, Digital Experience, and Publishing and Advertising. The company’s Creative Cloud and Document Cloud platforms let creators and businesses design content for various formats. Adobe Aero, Adobe’s main AR platform, enables designers to build, collaborate, and publish interactive experiences in real environments. This puts Adobe Inc. (NASDAQ:ADBE) among the leaders in immersive content development, strengthening its position in AR digital experiences.
For the quarter ended February 28, 2025, Adobe Inc. (NASDAQ:ADBE) posted a record revenue of $5.71 billion, a 10% jump year-over-year. Its GAAP net income hit $1.81 billion, while its non-GAAP reached $2.22 billion. The company’s operating cash flow was $2.48 billion. The Digital Media segment brought in $4.23 billion with an ARR of $17.63 billion—up 12.6% from last year. Adobe finished the quarter with $19.69 billion in future obligations and bought back 7 million shares, also making it to our list of the best metaverse stocks.
Additionally, Business Professionals and Consumers’ subscriptions revenue grew 15% to $1.53 billion, while Creative and Marketing Professionals revenue increased 10% YoY to $3.92 billion. Meanwhile, the Digital Experience added another $1.41 billion, with subscription revenue up 11%. Adobe’s AI innovations ended the quarter with over $125 million in ARR, showing strong demand for the company’s generative toolset.
Adobe upheld its FY2025 revenue forecast of $23.55 billion, with non-GAAP earnings per share ranging from $20.20 to $20.50, and revenue projection hitting $5.82 billion. Even with economic challenges, Adobe Inc. (NASDAQ:ADBE) stays confident about its varied approach, ability to generate cash, and innovative AR and AI products.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) stands as a tech powerhouse that makes and markets hardware like iPhones, iPads, Macs, and wearables. It also delivers software, cloud services, and subscriptions across fitness, music, entertainment, gaming, and news. Its App Store and platforms form key building blocks of the metaverse, supporting AR, spatial computing, and immersive experiences through products like the Apple Vision Pro. Apple ranks among the best metaverse stocks, thanks to its integration of AI, AR, and spatial computing throughout its product lineup.
For Q4 ending December 28, 2024, Apple Inc. (NASDAQ:AAPL) reported impressive results, with revenue hitting $124.3 billion, up 4% year-over-year. Net income reached $36.3 billion, with EPS climbing 10% to $2.40. Meanwhile, products generated $98 billion, with iPhones bringing in $69.1 billion, while Services set a record at $26.3 billion, jumping 14% YoY. Additionally, Mac and iPad sales surged by 16% and 15%, respectively, driven by strong demand for new models by Apple Silicon. All in all, the company now boasts over 2.35 billion active devices worldwide.
Furthermore, Apple Inc. (NASDAQ:AAPL) continues to expand its services with over 1 billion paid subscriptions. Its new “Apple Intelligence” features are now available on iPhones, iPads, and Macs, offering visual intelligence, Genmoji, and enhanced Siri functions. The company has also rolled out Vision Pro globally, expanding its spatial computing and strengthening its position in the metaverse space.
For Q2 2025, Apple Inc. (NASDAQ:AAPL) projects low to mid-single-digit revenue growth despite currency challenges, and the gross margin is expected to be between 46.5% and 47.5%. The company plans to expand Apple Intelligence to more regions in April and will open new flagship stores, including its first in Saudi Arabia. While China remains tough, Apple is seeing double-digit growth in India and other emerging markets.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) globally dominates accelerated computing and graphics technology, with products spanning gaming, data centers, AI, and cars. Its portfolio features GeForce GPUs, the Omniverse platform, NVIDIA AI Enterprise, and advanced networking tech. Through Omniverse and RTX technology, key components of the future metaverse, NVIDIA has become a leader in digital twins and virtual teamwork.
For the quarter ending January 26, 2025, NVIDIA Corporation (NASDAQ:NVDA) posted a record revenue of $39.3 billion, up 12% from the previous quarter and 78% year-over-year. Full-year fiscal 2025 revenue jumped 114% to $130.5 billion, and data center revenue hit $35.6 billion in Q4, growing 93% year-over-year, driven by AI and inference computing demand. Automotive revenue more than doubled to $570 million, while gaming revenue fell to $2.5 billion due to supply issues. Meanwhile, GAAP EPS reached $0.89, up 82% from last year, and the company gave back $8.1 billion to shareholders through dividends and buybacks.
In addition, NVIDIA pushed AI innovation with its Blackwell architecture, which generated $11 billion in Q4 revenue by boosting performance for reasoning-based AI tasks. The soon-to-launch Blackwell Ultra and Vera Rubin architectures show ongoing R&D momentum. Moreover, partnerships with cloud providers, car makers, and healthcare organizations expanded NVIDIA’s reach across AI training, inference, and edge computing. A notable 75% of the world’s top supercomputers now run on NVIDIA Corporation (NASDAQ:NVDA) platforms.
For the future, NVIDIA predicts Q1 fiscal 2026 revenue of around $43 billion. With the growing adoption of Omniverse and RTX applications, NVIDIA Corporation (NASDAQ:NVDA) stands strong as one of the best metaverse stocks. Expanding deployments of AI supercomputers and simulation platforms, such as Cosmos and DRIVE, highlight NVIDIA’s vision to power immersive, intelligent virtual worlds across industries.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) dominates the digital communication and virtual interaction space through its Family of Apps and Reality Labs segments. The Family of Apps includes Facebook, Instagram, and WhatsApp, while Reality Labs is building a metaverse infrastructure via VR, AR, and AI hardware like smart glasses. This portfolio allows META to rank among the best metaverse stocks.
For Q4 ending December 31, 2024, Meta Platforms, Inc. (NASDAQ:META) reported strong results where revenue was up 21% to $48.4 billion. Meanwhile, the operating income reached $23.4 billion, showing a 48% margin, resulting in a net income of $20.8 billion ($8.02/share), beating market expectations. Moreover, Family of Apps brought in $47.3 billion, while Reality Labs added $1.1 billion, although Meta reported a $5 billion operating loss. As a result, free cash flow hit $13.2 billion, with $77.8 billion in cash and marketable securities.
Additionally, Meta is pushing forward with its AI and metaverse advancements as Meta AI serves 700M+ monthly users, supported by a 2-gigawatt AI data center and custom AI chips. Moreover, Ray-Ban Meta smart glasses and AI integration across platforms highlight the company’s wearable tech/AI strategy. Simultaneously, Meta Platforms, Inc. (NASDAQ:META) started integrating Meta AI in Threads, WhatsApp, and Facebook for better engagement.
For the first quarter of 2025, Meta projects a revenue between $39.5 billion and $41.8 billion. Despite Reality Labs’ losses, a strong app ecosystem, AI adoption, and ad revenue provide cash flow for metaverse R&D. While the company suffers from regulatory challenges and higher CapEx, scale, and early-mover advantage position Meta Platforms, Inc. (NASDAQ:META) is well-positioned for long-term growth in immersive tech.
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.
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