In this article, we will look at the 12 Best Virtual Reality Stocks to Buy According to Analysts.
Overview of the Global VR Industry
Virtual Reality (VR) creates a 3D artificial environment in the real world through VR technology gadgets such as headsets, gloves, glasses, and bodysuits. According to Grand View Research, the global VR market had a market size of $59.96 billion in 2022. The industry is expected to grow at a compound annual growth rate of 27.5% between 2023 and 2030.
The VR industry has metamorphosed the entertainment and gaming sector by allowing users to engage in a simulated environment. In addition to its popularity in these sectors, another significant factor behind its anticipated growth is its use in instructional training, such as for engineers, pilots, field workers, defense personnel, mechanics, and technicians working in various industrial sectors. In addition, VR is also used in industries like healthcare and automotive due to its significant operational benefits.
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VR in Gaming
VR in gaming refers to a simulated, immersive experience that manufactures an interactive 3D environment, allowing users to feel as if they are physically present in the simulated reality. This reality is generally administered through a headset that traces head movements and displays images to create a feeling of immersion. The technology also employs additional factors, such as treadmills or motion controllers, to augment the realistic and interactive mode of the experience.
According to Fortune Business Insights, the global Virtual Reality (VR) market in gaming was valued at around $17.96 billion in 2023. It is anticipated to grow at a significant compound annual growth rate of 30.4% between 2024 and 2032, going from $22.63 billion to $189.17 billion between the forecast period. North America is anticipated to be the largest market dominating the global industry, holding a share of 37.42% in 2023.
VR in gaming is increasing in popularity across the globe, with major technology companies making significant investments in developing innovative and advanced VR software and hardware. This trend is making the technology more accessible to a broader consumer base.
VR in Healthcare
According to Fortune Business Insights, the global VR in the healthcare market had a share of $3.12 billion in 2023. It is anticipated to grow at a compound annual growth rate of 35.1% between 2024 and 2032, going from $4.18 billion to $46.37 billion over the forecast period. VR in healthcare is gaining significant traction due to its immense benefits for the industry. The technology employs computer-developed mechanisms to deliver medical training to healthcare professionals and allows efficient healthcare treatments in immersive environments.
Medical professionals attain interactive, simulation-driven training, providing more efficient treatment strategies and accurate diagnoses. The technology also helps medical marketing and creates significant scope for income generation through enriched patient experiences. In addition, several major VR providers in healthcare solutions are integrating 360-degree video features and interactive 3D content to develop effective learning programs for healthcare students and professionals.
With these trends in view, let’s look at the 12 best virtual reality stocks to buy according to analysts.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 20 virtual reality stocks. We then selected the top 12 with the highest analyst upside potential as of March 3, 2025. We also added the number of hedge fund holders for each stock as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential as of March 7, 2025.
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 Best Virtual Reality Stocks to Buy According to Analysts
12. Sony Corporation (NYSE:SONY)
Analyst Upside: 17.21%
Number of Hedge Fund Holders: 25
Sony Corporation (NYSE:SONY) is a Japanese multinational conglomerate that develops, designs, manufactures, and sells electronic devices, game consoles, and software for industrial markets. The company introduced one of the most popular VR headsets of all time, the PlayStation VR (PSVR), launched in October 2016. In 2023, the company launched the PlayStation VR2 globally, its next-generation virtual reality headset.
The company is transitioning into a digital streaming company through its PlayStation and Crunchyroll segments, which are anticipated to generate more than $48 billion in revenue by the end of the fiscal year 2029. PlayStation’s focus on engagement-based services is driving growth in repeated revenues and contributing to the user lifetime value. Crunchyroll, the biggest anime streaming platform, is also benefiting from the increasing popularity of anime across the world. These platforms position SONY well for high growth and improved profitability.
Sony Corporation (NYSE:SONY) also has strong operations. It reported an 18% year-on-year growth in consolidated sales in fiscal Q3 2024, including the financial services segment. Operating income increased 1% to ¥469.3 billion, a record high for Q3, and net income increased 3% to ¥373.7 billion. The company ranks 12th on our list.
11. QUALCOMM Incorporated (NASDAQ:QCOM)
Analyst Upside: 23.05%
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry, including 3G, 4G, and 5G wireless connectivity and high-performance and low-power computing, including on-device AI. The company operates across various high-growth markets, including autonomous vehicles and smartphones. It supplies chips to key industry players, including BMW, Huawei, and Samsung. QUALCOMM’s Snapdragon augmented reality technology is the next generation of mobile computing that merges the actual world with virtual objects to create an immersive reality.
The company’s VR technologies allow for new realms of immersive user experiences, ushering in a new digital future. Some of the best VR chipsets from the company include the Snapdragon VR products that leverage AI, 5G, on-device processing, and edge cloud processing for photorealistic visuals and life-like responsiveness. QUALCOMM Incorporated’s (NASDAQ:QCOM) VR solutions allow original equipment developers and manufacturers to develop technologies that employ graphics with high pixel density, immerse users with 3D spatial sound for precise voice interactions, and develop avatars with nuanced facial expressions.
In fiscal Q1 2025, QUALCOMM Incorporated (NASDAQ:QCOM) reported record revenue and earnings per share, with its Chipset revenue hitting a record $10.1 billion. In addition, the company’s automotive and IoT businesses underwent robust 61% and 36% year-over-year growth, demonstrating its diverse and solid business operations. The company ranks 11th on our list of the 12 best virtual reality stocks to buy according to analysts.
Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:
“Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market.”
