We recently published a list of the 12 Best Virtual Reality Stocks to Buy According to Analysts. In this article, we are going to take a look at where Immersion Corporation (NASDAQ:IMMR) stands against the other 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.
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).
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Immersion Corporation (NASDAQ:IMMR)
Analyst Upside: 78.11%
Number of Hedge Fund Holders: 17
Immersion Corporation (NASDAQ:IMMR) designs, develops and licenses various haptic technologies that allow users to experience digital products and use their sense of touch to engage with them. The company specializes in haptic technology, with more than 3 billion devices across the globe using its technology. The rising popularity of VR and AR technologies and the growing demand for hepatic technology across key gaming, consumer electronics, and automotive domains position it as one of the best VR stocks to buy. Immersion Corporation (NASDAQ:IMMR) created the haptic feedback technology in the PlayStation 5 DualSense controller.
Immersion Corporation (NASDAQ:IMMR) reported total revenues of $616.2 million in fiscal Q2 2025, compared to $7.0 million in the three months ended June 30, 2023. In addition, GAAP net income attributable to Immersion Corporation stockholders was $27.2 million in the three months ended October 31, 2024, compared to $7.0 million in the prior year period.
Immersion Corporation (NASDAQ:IMMR) also announced a special dividend of $0.245 per share, payable on January 24, 2025, to shareholders of record of January 10, 2025, reflecting the company’s financial strength. The company’s median price target of $8.04 implies an upside of 71.02% from current levels.
Overall, IMMR ranks 2nd on our list of the best virtual reality stocks to buy according to analysts. While we acknowledge the potential of IMMR as an investment, 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 IMMR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.