5 Best Virtual Reality Stocks to Invest In

In this article, we will discuss the 5 best virtual reality stocks to invest in. If you want to go through our detailed analysis of the virtual reality industry which highlights key trends and major players, you can directly go to the 12 Best Virtual Reality Stocks to Invest In.

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Funds Holders: 135

The Apple Vision Pro stands as Apple Inc. (NASDAQ:AAPL)’s foray into the realm of augmented and virtual reality headsets, a project that has undergone more than a decade of development. This device represents Apple’s inaugural venture into a novel product category since the introduction of the Apple Watch in 2015. With a price tag of $3500, the Vision Pro was unveiled at WWDC 2023 in June, with plans for its official release scheduled for the early months of 2024, encompassing the period from January to late April.

Our hedge fund data for the second quarter shows 135 hedge funds long Apple Inc. (NASDAQ:AAPL). Their total stake value was $194 billion. Holding 915.56 million shares in the company, Warren Buffett’s Berkshire Hathaway was the largest stakeholder in Apple Inc. (NASDAQ:AAPL) at the end of the second quarter.

Silver Ring Value Partners made the following comment about Apple Inc. (NASDAQ:AAPL) in its first-quarter 2023 investor letter:

“Exited the Apple Inc. (NASDAQ:AAPL) put options position, as I came to the conclusion that I was wrong about the degree to which the stock is overvalued. While I still believe it’s optimistically priced, the fundamentals over the last few years made me believe that my initial decision to buy the put options was wrong.”

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Funds Holders: 152

Alphabet Inc. (NASDAQ:GOOG) stands as a prominent technology behemoth within the Big 5. Anchored by its cornerstone, Google, the company’s search engine processes billions of queries daily. Its portfolio extends to various video streaming and productivity platforms, most notably YouTube. Moreover, Alphabet is involved in the retail of electronic gadgets, including smartphones, slim laptops, and speakers.

Alphabet Inc. (NASDAQ:GOOG)’s initial endeavor into the realm of wearable VR/AR technology was embodied by Google Glass, introduced in 2013. While the reception for the Glass was relatively subdued, reports indicate that the company is currently working on a new headset, with aspirations for a potential release around 2024. Over recent years, Google has also channeled substantial investments into its visual search engine Lens and has introduced AR functionalities to enhance Google Maps.

On July 25, the company announced a Q2 GAAP EPS of $1.44, exceeding Street consensus by $0.10. The revenue increased 7% year-over-year to $74.6 billion, surpassing market expectations by $1.84 billion.

After digging through 910 hedge funds for their second quarter of 2023 shareholdings, Insider Monkey found out that 152 had bought Alphabet Inc. (NASDAQ:GOOG)’s shares. Out of these, the firm’s largest investor is Natixis Global Asset Management Harris Associates with a $3.21 billion stake.

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Funds Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that manufactures graphics processors, mobile technologies, and desktop computers. A prominent player in the race towards the VR applications, NVIDIA Corporation (NASDAQ:NVDA) is poised to reap the benefits from the technology’s advancement. In the realm of sophisticated VR applications—beyond the domain of video games where realism might take a back seat—a powerful PC equipped with a high-end Nvidia graphics card typically shoulders a significant portion of the processing load. Nvidia Corporation (NASDAQ:NVDA) has engineered VR-dedicated iterations of its GeForce GTX GPUs and has introduced a software developer kit (SDK) named VRWorks tailored to its chips. This SDK empowers developers to optimize performance, generate top-tier visual output, and maintain minimal latency.

NVIDIA Corporation (NASDAQ:NVDA) experienced a positive hedge fund sentiment in Q2 2023, as 175 hedge funds tracked by Insider Monkey owned stakes in the company, up from 132 in the previous quarter.

Baron Fifth Avenue Growth Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) Corporation is a fabless semiconductor company focused on designing chips and software for gaming and accelerated computing. Shares continued their torrid first quarter rise, increasing 52.3% in the second quarter (now up 190% year-to-date), after the company reported a meaningful acceleration in demand for its data center GPUs, which drove a material guidance beat with revenues expected to increase from $7.2 billion to approximately $11 billion sequentially. This unprecedented acceleration is driven by growing demand for GenAI. We are at the tipping point of a new era of computing with NVIDIA at its epicenter. While the opportunity within the datacenter installed base is already large at approximately $1 trillion, the pace of innovation in AI in general, and GenAI in particular, should drive a significant expansion in the addressable market, as AI creates a new way for human-computer interaction through language, and as companies are better able to utilize their data for decision-making. We remain shareholders as we believe NVIDIA’s end-to-end AI platform and the ecosystem it has cultivated over the last 15 years will benefit the company for years to come.”

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Funds Holders: 225

In October 2021, Meta Platforms, Inc. (NASDAQ:META), previously recognized as Facebook, underwent a name change to underscore its dedication to the metaverse concept. Since then, the company has committed significant financial resources, amounting to billions of dollars, to pursue metaverse ventures via its Reality Labs division. Moreover, Meta Platforms, Inc. (NASDAQ:FB) offers the Meta Quest series of virtual reality devices, along with associated software and metaverse-oriented content accessible through the Meta Quest Store. This platform empowers individuals to engage in diverse virtual encounters, spanning realms like gaming, fitness, and entertainment. The most recent version of its flagship offering, the Meta Quest 2, has garnered favorable feedback and enhances accessibility to VR by featuring a reduced price compared to its predecessor.

According to Insider Monkey’s first quarter database, 225 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 220 funds in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is one of the largest stakeholders of the company, with a position worth $1.62 billion.

Artisan Value Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q1 2023 investor letter:

“Our top contributors in Q1 were Meta Platforms, Inc. (NASDAQ:META), Warner Bros Discovery (WBD) and FedEx. Following sharp declines in 2022, shares of Meta Platforms have more than doubled since their early November 2022 lows. Last year’s drawdown created a highly favorable risk-reward, which we took advantage of by adding to our position. Management has wisely, in our view, recalibrated its spending plans to focus on profitability amid a weaker advertising environment, increased TikTok competition and Apple’s privacy changes. While investors got ahead of themselves back in 2021, extrapolating pandemic growth rates into the future, Meta is still a highly successful enterprise generating over $120 billion of revenue annually on a run-rate basis and has more than $40 billion in cash on its balance sheet to help it navigate its future course. Recent usage and engagement trends for Facebook and Instagram have been positive, and Reels—Meta’s answer to TikTok—is gaining traction.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Funds Holders: 300

As other hardware and software enterprises concentrate on the consumer sector, Microsoft Corporation (NASDAQ:MSFT) has chosen to directly target enterprise clientele with its VR technology. Microsoft Corporation (NASDAQ:MSFT) characterizes its HoloLens device as an “autonomous self-contained holographic tool equipped with enterprise-ready functionalities.” The company is actively promoting this device to industries such as manufacturing, healthcare, and education. It even offers a dedicated collection of industry-specific applications and boasts over 200 partner applications tailored for use with the HoloLens.

According to Insider Monkey’s second quarter database, 300 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 289 funds in the earlier quarter. Billionaire Bill Gates’ Bill & Melinda Gates Foundation Trust is the largest Microsoft stakeholder, with a position worth $13.37 billion.

Ariel Global Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Enterprise software provider, Microsoft Corporation (NASDAQ:MSFT) also traded higher in the period alongside the investor enthusiasm for Artificial Intelligence. Microsoft is well positioned as this new technology advances given its large investment in Open AI, the parent company of ChatGPT. Looking ahead, we continue to like Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within Azure, its hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

See also Starter Stock Portfolio: 15 Safe Stocks To Buy and 12 Dividend Kings To Buy For Safe Dividend Growth.