Augmented Reality has been around for many years. The game-changing technology that overlays digital information onto the real world while creating a unique and interactive experience is increasingly shaping the way people live and operate in various sectors. While the technology has been associated with expensive headsets and sophisticated apps, it’s proving to be the real deal in helping people learn new skills and share information.
It has successfully enhanced how people see and hear through devices. Likewise, augmented reality (AR) has shifted from sci-fi dreams to mainstream business tools. It’s reshaping how companies train employees, engage customers, and streamline operations. The real battle, however, will take place in the upcoming years when AR glasses are developed to the point where they can replace smartphones.
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In the future, smart glasses will be the most common mobile device, and people will switch to mixed reality or virtual reality headsets for computing or gaming. According to that scenario, head-worn technology will have replaced laptops and phones, two industries with combined sales of hundreds of billions of dollars.
The size of the augmented reality market was estimated at $42.85 billion in 2023 and is expected to increase at a compound annual growth rate (CAGR) of 33.5% to $577.19 billion by the end of 2032, according to data from SkyQuest Technology. The market is expanding due to the growing demand for augmented reality (AR) in the retail and e-commerce industries, as well as the increasing adoption of AR technology in the healthcare sector. Since digital improvements have been introduced into the real world to improve user experiences and the operations of various industries, the augmented reality market has grown in size within the technology sector.
Latency and processing power limitations were two of AR technology’s main drawbacks. However, with the deployment of more 5G networks, this is a thing of the past. More than half of the world’s population now has access to 5G networks, compared to just 1.5 billion in 2023, according to GSMA. More complex AR applications are becoming possible thanks to these infrastructure advancements, opening up new markets for businesses producing software and hardware.
A confirmation that Samsung and Google have joined forces to develop augmented reality glasses underscores how tech giants are consolidating to tap the massive opportunity up for grabs. The partnership comes on the heels of Meta’s flashy revelation of Orion, its first augmented reality glasses. While the focus for the longest time has been on tech giants that are increasingly investing in AR to strengthen their product portfolio, small companies are also entangled in the augmented reality race.
The best-augmented reality stocks to invest in under $10 contain small-cap companies investing in AR to revolutionize various sectors of the global economy. From enhancing user experience in content streaming to enhancing autonomous technology supply chain and logistics. The companies are also working on AR solutions for the aerospace and defense sectors
Smaller businesses are creating essential AR solutions and components. This puts them in a position to gain a lot from the expansion of the market. Investors have the opportunity to get involved in the market early because some of these companies are trading below $10.
Our Methodology
To make the list of 9 Best Augmented Reality Stocks to Invest in Under $10, we scanned US stock markets, focusing on companies that are focusing on augmented and virtual reality innovations. We reviewed ETFs and financial media reports to compile our preliminary list. We then settled on the 10 stocks trading for less than $10 per share with solid underlying fundamentals. Finally, we ranked the stocks in ascending order based on their share price as of January 31.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
9 Best Augmented Reality Stocks to Invest in Under $10
9. WiMi Hologram Cloud Inc. (NASDAQ:WIMI)
Share Price as of January 31: $0.94
Number of Hedge Fund Holders: 2
WiMi Hologram Cloud Inc. (NASDAQ:WIMI) provides holographic services and products for augmented reality (AR). It primarily offers holographic AR advertising services and holographic AR entertainment products. The company also provides a diverse range of services and technologies in the holographic AR space, including automotive HUD software, LiDAR technology, and holographic semiconductor development.
WiMi Hologram Cloud Inc. (NASDAQ:WIMI) has unveiled the WiMi HoloAR Lens, a feature-rich, lightweight AR headset. This headset aims to improve the user experience in several contexts, such as home entertainment, virtual communication, and travel. It is also one of the best-augmented reality stocks to invest in as it utilizes quantum theory and cutting-edge AI technology to try and unify quantum theory with human consciousness.
The world leader in holographic augmented reality (AR) technology has introduced a new quantum algorithm that will improve the efficiency of solving linear equations. It is claimed that the new HQLS algorithm will lessen the need for large-scale controlled gate operations, which are challenging to execute on existing quantum computers because of hardware limitations. WiMi Hologram Cloud Inc. (NASDAQ:WIMI) expects the performance of HQLS to be further improved by developments in error correction methods and quantum computing hardware. Potential uses for the algorithm include physical simulations, large-scale data processing, and optimization issues, among other domains.
8. MicroVision, Inc. (NASDAQ:MVIS)
Share Price as of January 31: $1.59
Number of Hedge Fund Holders: 5
MicroVision, Inc. (NASDAQ:MVIS) develops and sells lidar sensors and software for automotive safety and autonomous driving applications. It offers a suite of light detection, ranging (lidar) sensors, perception, and validation software for automotive OEMs. Given its vast product portfolio that focuses on high-volume passenger car projects, it remains one of the best-augmented reality stocks.
MicroVision, Inc. (NASDAQ:MVIS) believes that 905-nanometer lidar technology is reliable and economical for long-term auto manufacturing. As a result, it aims for more in-depth cooperation with automakers and tailored software. In order to satisfy the expected demand from the industrial sector, it has also announced an expansion in the production capacity of its MOVIA L sensor. With ZF as their Tier 1 manufacturing partner, the company anticipates a notable increase in output in 2025 over 2024. For industrial applications, the increased production scale will result in lower average costs per sensor while preserving high standards of quality.
7. The Glimpse Group, Inc. (NASDAQ:VRAR)
Share Price as of January 31: $1.70
Number of Hedge Fund Holders: 1
The Glimpse Group, Inc. (NASDAQ:VRAR) is an immersive technology company that provides enterprise-focused virtual reality (VR), augmented reality (AR), and spatial computing software and services. It is one of the augmented reality stocks showing signs of breaking out after a 35% rally in 2024. The rally came as the company secured $7.29 million in funding to accelerate its special computing, AI and Immersive capabilities efforts.
The capital infusion is strategically in line with the rapidly advancing convergence of immersive technologies, artificial intelligence, and spatial computing. Glimpse’s enterprise-focused approach to VR/AR places them at the nexus of two significant technological trends: enterprise digital transformation and the revolution in spatial computing. They can support expanding customer contracts and improving their technology stack thanks to the funding, which is essential for growing the market for enterprise immersive solutions.
In addition to having enough cash on hand to sustain its expanding clientele, The Glimpse Group, Inc. (NASDAQ:VRAR) is receiving the necessary resources to develop better 3D computing tools that companies can use to operate more efficiently. This is significant since more businesses are beginning to incorporate VR and AR into their everyday operations.
6. Kopin Corporation (NASDAQ:KOPN)
Share Price as of January 31: $1.74
Number of Hedge Fund Holders: 11
Kopin Corporation (NASDAQ:KOPN) and its subsidiaries invent, develop, manufacture, and sell microdisplays, subassemblies, and related components for defense, enterprise, industrial, and consumer products. As a leader in providing application-specific optical systems, the company has shown significant interest in the U.S. Army’s Integrated Visual Augmentation System (IVAS).
The move came with the US Army initiating a competition process for Microsoft’s $22 billion Integrated Visual Augmentation System (IVAS) production contract. The US Army seeks a strategic partner to address issues such as visual discomfort and nausea from the current mix of augmented reality headsets. The opening up of the contract presents a tremendous opportunity should Kopin Corporation (NASDAQ:KOPN) secure the contract. The U.S. government views the company favorably because of its defense-related activities, such as the F-35, weapons sight, and Lockheed missile programs.
5. Perfect Corp. (NYSE:PERF)
Share Price as of January 31: $2.17
Number of Hedge Fund Holders: 9
Perfect Corp. (NYSE:PERF) is an artificial intelligence software as a service company that offers artificial intelligence (AI) – and augmented reality (AR)-powered solutions for the beauty, fashion, and skincare industries. It is well-known for its AI and AR technology solutions, offering millions of people worldwide virtual try-ons and beauty diagnostics. Major beauty brands have undergone a digital transformation thanks in large part to its technology, which also enhances the online shopping experience.
Recognized for its virtual try-on technology and digital solutions, Perfect Corp. (NYSE:PERF) has moved to strengthen its prospects in the industry with the acquisition of Wannaby. The acquisition is a leading player in augmented reality and computer vision technology, focusing on offering virtual try-on platforms for fashion items, thus revolutionizing online shopping for consumers and retailers.
Wannaby is a specialist in immersive digital experiences for the fashion industry. The acquisition should broaden its offerings into the luxury segments of shoes, bags, and apparel. Known for its digital solutions and virtual try-on technology, Wannaby has partnered with more than 30 luxury brands. It is projected that Wannaby’s capabilities, combined with Perfect Corp.’s (NYSE:PERF) cutting-edge beauty technology, will revolutionize the digital fashion and beauty industry.
4. Vuzix Corporation (NASDAQ:VUZI)
Share Price as of January 31: $4.14
Number of Hedge Fund Holders: 5
Vuzix Corporation (NASDAQ:VUZI) designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. It is one of the best-augmented reality stocks to invest in, its share price having more than doubled in 2024. The rally came as the company continued to innovate and expand its product offerings. Last year, it launched the Xtreme Smart Glasses Kit, specifically designed to endure extreme weather conditions.
The launch strengthened the company’s entry into the consumer smart glasses market, where it offered Vuzix Z100 smart glasses. Vuzix Corporation (NASDAQ:VUZI) has also developed ‘Vuzix Connect’, an application that connects to the Vuzix Z100 smart glasses, enabling real-time notifications. Recent updates to the app have introduced new features such as a teleprompter, a fitness application, Google Maps integration, as well as translation and transcription capabilities.
Vuzix Corporation (NASDAQ:VUZI) has received a significant production order for its smart glasses from a prominent US-based aerospace and defense company. The six-figure order underscores the strong demand and significant business development for the company. It has also inked a strategic partnership with Augmex to enhance smart glasses development for warehousing, logistics, and healthcare.
3. Matterport, Inc. (NASDAQ:MTTR)
Share Price as of January 31: $5.21
Number of Hedge Fund Holders: 27
Matterport, Inc. (NASDAQ:MTTR) is a spatial data company that focuses on digitization and datafication. It offers Matterport Capture Services, a fully managed solution for enterprise subscribers; Matterport Pro3, a 3D camera that scans properties; Matterport Pro2, a 3D camera that captures spaces. The stock has been flying high, attributed to solid financial results characterized by steady revenue growth of 3.82%
Matterport, Inc. (NASDAQ:MTTR) is increasingly capitalizing on the growing demand for 3D modeling technology across various industries, from real estate to virtual reality. In addition, the release of AI-powered features positions MTTR for enterprise adoption and workflow automation, potentially accelerating revenue growth in 2025. An important technological development is the incorporation of generative AI capabilities in the fall 2024 Release
The collaboration with Tokyo Construction demonstrates the enterprise-grade potential of digital twin technology, especially for intricate infrastructure projects. The platform’s capacity to improve cooperation and expedite point cloud data scanning indicates a strong product-market fit in the construction sector.
2. Immersion Corporation (NASDAQ:IMMR)
Share Price as of January 31: $8.37
Number of Hedge Fund Holders: 14
Immersion Corporation (NASDAQ:IMMR) and its subsidiaries engage in the creation, design, development, and licensing of haptic technologies that allow people to use their sense of touch to engage with and experience various digital products. It is one of the best-augmented reality stocks owing to rising demand for its hepatic technology across key gaming, automotive and consumer electronics sectors.
Demand for Immersion Corporation’s (NASDAQ:IMMR) products may have been fueled by the growing popularity of virtual reality (VR) and augmented reality (AR) technologies, which depend on haptic feedback to create immersive experiences. Expanded licensing agreements and royalties from well-known OEMs (original equipment manufacturers) in these developing tech markets are also anticipated to have contributed to revenue growth in the quarter that will be reported.
Together with effective cost control, Immersion’s strategic initiatives to expand its product line and penetrate new markets may have increased operational effectiveness and profit margins. Immersion Corporation’s (NASDAQ:IMMR) emphasis on growing its intellectual property (IP) portfolio and negotiating new licensing agreements contributed significantly to the third quarter’s increased revenue and earnings growth.
1. Himax Technologies Inc. (NASDAQ:HIMX)
Share Price as of January 31: $9.75
Number of Hedge Fund Holders: 15
Himax Technologies Inc. (NASDAQ:HIMX) is a fabless semiconductor company that provides display imaging processing technologies. It offers display driver integrated circuits (ICs) and timing controllers used in televisions, PC monitors, laptops, and automobiles. The stock has been flying high in the market amid growing expectations that the company is well-positioned to benefit from Taiwan Semiconductor’s AI and silicon photonics push.
As the sole supplier of micro-lens arrays for Taiwan Semiconductor’s silicon photonics initiative, which is currently being validated, Himax Technologies Inc. (NASDAQ:HIMX) stands to gain from first- and second-generation COUPE. It delivered solid third-quarter results with revenues of $222.4 million as the automotive and tablet sectors bolstered the company’s performance, with robust sales reported despite a slight sequential decline in revenues.
Research firm Baird’s recognition of Himax Technologies Inc.’s (NASDAQ:HIMX) potential growth in the fields of Augmented Reality (AR) and Co-Packed Optics is reflected in its consensus buy rating on the stock. According to the company, Himax has an advantage in the developing market for AR devices thanks to its patented technologies in waveguide and microdisplay components. In order to improve non-driver IC sales, Himax is also developing cutting-edge CPO technology and extending its WiseEye AI Sensing solution into new applications.
While we acknowledge the potential of Himax Technologies Inc. (NASDAQ:HIMX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HIMX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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