5 Metaverse Stocks Billionaires Are Loading Up On

In this article, we discuss 5 metaverse stocks billionaires are loading up on. If you want to see more stocks in this selection, check out 10 Metaverse Stocks Billionaires Are Loading Up On. 

5. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 91

Number of Billionaire Investors: 19

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a prominent semiconductor company known for its CPUs and GPUs, which are crucial components in powering and rendering graphics-intensive applications, including those found in the metaverse. In the first quarter of 2023, Advanced Micro Devices, Inc. (NASDAQ:AMD) was found in the investment portfolios of 19 billionaires. 

On May 31, BofA raised the firm’s price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $135 from $120 and maintained a Neutral rating on the shares. The increased price target is attributed to a rising sector multiple. However, BofA’s Neutral rating is influenced by two factors. Firstly, there are headwinds in the x86 total addressable market, which may impact AMD’s growth potential. Secondly, BofA noted that AMD’s data center GPU portfolio is still in the early stages of development, suggesting that it may take time to fully capitalize on this market.

According to Insider Monkey’s first quarter database, 91 hedge funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 97 funds in the prior quarter. Billionaire Philippe Laffont of Coatue Management is a significant position holder in the company, with 8.5 million shares worth $833.7 million. 

Horizon Kinetics made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q1 2023 investor letter:

“It is among what are considered to be the great technology companies, like Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel, that one is apt to see some of the greatest confusion between short-term financial results and share price movements, on the one hand, and long-term financial results. The former are exceedingly difficult to predict. Long term results are relatively easy to predict, because they are bound by the limiting realities of the business model. In the case of AMD, that is the business of being a large-scale semiconductor manufacturer with a more dominant competitor that has a scale economy advantage.

Here’s what people see, remember and act upon. In the past several years, AMD has been the best performing major technology stock. It outperformed Apple, Amazon, Google, Meta (Facebook) and Nvidia…” (Click here to read the full text)

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

Number of Billionaire Investors: 22

NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company known for its graphics processing units (GPUs) and related technologies that are widely used in various industries, including gaming, artificial intelligence, and virtual reality. NVIDIA Corporation (NASDAQ:NVDA)’s GPUs are highly regarded for their top-notch graphics rendering capabilities, computational power, and real-time performance. These attributes are essential for delivering immersive and visually stunning experiences in the metaverse. In the first quarter of 2023, 22 billionaires were bullish on NVIDIA Corporation (NASDAQ:NVDA), including Rajiv Jain of GQG Partners.  

On May 25, Morgan Stanley raised the firm’s price target on NVIDIA Corporation (NASDAQ:NVDA) to $450 from $304 and kept an Overweight rating on the shares. According to the analyst, Nvidia’s guidance for the July quarter suggests a remarkable performance that surpasses their previous expectations, reaching revenue levels that were initially anticipated for early 2025. The analyst further noted that the significant surge in AI spending is yielding positive results much earlier than anticipated.

According to Insider Monkey’s first quarter database, 132 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), up from 106 funds in the earlier quarter. 

Alger Spectra Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put. Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. As such, we believe Nvidia is a long-term high unit volume growth opportunity. During the period, NVIDIA reported fiscal fourth-quarter results that met expectations, as the company navigated. through an inventory correction associated with the broad macroeconomic slowdown. Moreover, management gave fiscal year earnings guidance that was better than analyst estimates, noting strong year-over-year growth in gaming and data centers. Management’s constructive assessment of 2023 prospects. coupled with the rapid rollout and adoption of generative Al offerings, led to positive share price performance.”

3. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 173

Number of Billionaire Investors: 24

As the metaverse evolves and virtual economies emerge, there will likely be a need for secure, efficient, and seamless payment solutions within these digital realms. Visa Inc. (NYSE:V)’s infrastructure and experience in facilitating electronic transactions could potentially be leveraged to support transactions and digital commerce within the metaverse. It is one of the top metaverse stocks preferred by billionaires. 

Following Visa Inc. (NYSE:V)’s mid-quarter update on monthly fiscal Q3 operating metrics through May 28, Bank of America characterized the update as “modestly positive for shares” in light of ongoing concerns regarding consumer spending. The analyst highlighted the noteworthy metric of travel-related cross-border volume growth, excluding intra-Europe transactions, which accelerated to 139% of 2019 levels in May compared to 131% in April. The analyst maintains a positive outlook on Visa Inc. (NYSE:V), citing the company’s business model quality, resilience during economic downturns, favorable long-term trends, and a valuation that is considered reasonable. BofA reiterated a Buy rating on Visa Inc. (NYSE:V) shares and set a price target of $270.

According to Insider Monkey’s first quarter, 173 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 177 funds in the prior quarter. Billionaire Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 19.3 million shares worth $4.3 billion. 

Polen Global Growth Strategy made the following comment about Visa Inc. (NYSE:V) in its Q1 2023 investor letter:

“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.

We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”

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

Number of Hedge Fund Holders: 220

Number of Billionaire Investors: 26

Meta Platforms, Inc. (NASDAQ:META) has expressed its commitment to shaping the future of computing and connectivity by investing in technologies that enable immersive and interactive experiences. Given Meta Platforms, Inc. (NASDAQ:META)’s extensive user base and technological resources, it has the potential to play a significant role in the development of the metaverse. Meta is among the highly favored stocks by billionaires who hold a positive outlook on the metaverse.

On May 23, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Meta Platforms, Inc. (NASDAQ:META) and set a price target of $270 after conducting a thorough analysis of the company’s artificial intelligence (AI) capabilities. Following the examination, the analyst holds a more positive view of Meta’s position in the digital advertising and AI sectors. Despite Meta’s focus on the Metaverse, its AI initiatives are expected to yield revenue share gains in 2023 and 2024, helping the company regain ground lost after the implementation of Apple’s app tracking transparency. Piper Sandler continues to consider Meta Platforms, Inc. (NASDAQ:META) as its top choice in the digital advertising space.

According to Insider Monkey’s first quarter database, 220 hedge funds were long Meta Platforms, Inc. (NASDAQ:META), compared to 194 funds in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is one of the largest stakeholders of the company, with a position worth $1.70 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 Fund Holders: 289

Number of Billionaire Investors: 33

Microsoft Corporation (NASDAQ:MSFT) possesses a diverse range of products and services that have the potential to contribute to the development and utilization of the metaverse. The Azure cloud computing platform offered by Microsoft furnishes the necessary infrastructure and services to support the operational aspects of metaverse applications. Moreover, Microsoft Corporation (NASDAQ:MSFT)’s Mixed Reality platform, which encompasses devices like HoloLens and Windows Mixed Reality headsets, can facilitate augmented reality (AR) and virtual reality (VR) experiences within the metaverse. Additionally, Microsoft’s suite of productivity tools, including Office 365 and Teams, holds the possibility of being integrated into the metaverse, thereby enabling collaboration, communication, and content creation among metaverse users. Microsoft Corporation (NASDAQ:MSFT) is regarded as one of the leading stocks in the metaverse, garnering significant attention from billionaires. As of Q1 2023, 33 billionaires held long positions in the company. 

On June 2, Evercore ISI analyst Kirk Materne increased the price target on Microsoft Corporation (NASDAQ:MSFT) to $400 from $337 and maintained an Outperform rating on the shares. The analyst argued that Microsoft Corporation (NASDAQ:MSFT) is uniquely positioned to capitalize on the shift to AI in the coming years. In a bullish scenario, Evercore predicts that the integration of AI throughout Microsoft’s product portfolio could result in a potential $100 billion increase in revenue by 2027.

According to Insider Monkey’s first quarter database, 289 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the earlier quarter. Billionaire Bill Gates’ Bill & Melinda Gates Foundation Trust is the largest Microsoft stakeholder, with a position worth $11.3 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.”

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