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 Kopin Corporation (NASDAQ:KOPN) 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).
A team of engineers analyzing electronic components in a modern laboratory.
Kopin Corporation (NASDAQ:KOPN)
Analyst Upside: 95.31%
Number of Hedge Fund Holders: 18
Kopin Corporation (NASDAQ:KOPN) develops, manufactures, and sells wearable technology, including systems and components. Its portfolio includes OLED displays, optical lenses, AMLCD, LCOS displays, and ASICs. The company has been developing wearable VR and AR innovations since its inception. With over 200 patents, 35 million commercial displays shipped, and 300,000 fielded defense displays, Kopin Corporation (NASDAQ:KOPN) is continually delivering innovative systems that create imaginative visions maximizing performance and efficiency.
Kopin Corporation (NASDAQ:KOPN) employs semiconductor material technology to manufacture, design, and market its component products used in simulation equipment, 3D metrology equipment, and military, enterprise, and consumer electronic applications. It recently delivered live demonstrations of AR/VR heads-up displays (HUDs), application-specific optical solutions, and vision systems that boost human performance at SPIE AR/VR/MR 2025, held in San Francisco, California.
The company is making considerable progress in its transformation plan, reporting $13.3 million in revenue in fiscal Q3 2024 and reflecting a 26% increase over fiscal Q3 2023. Its defense products delivered $10.4 million in revenue in the quarter, experiencing a 109% year-over-year increase. Kopin Corporation (NASDAQ:KOPN) projects over 75 million in orders for 2024 and beyond, potentially the highest annual order total in the company’s 40-year history. It also announced the placement of development orders by five new customers, which management expects will drive multimillion-dollar production orders in the years ahead.
Overall, KOPN ranks 1st on our list of the best virtual reality stocks to buy according to analysts. While we acknowledge the potential of KOPN 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 KOPN 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.