I think it’s safe to say the metaverse hasn’t really delivered quite yet, at least as quickly as many investors hoped. Undoubtedly, the metaverse is still very much in the “under construction” mode for Meta Platforms (NASDAQ:META) and a number of other virtual reality and augmented reality innovators doing their best to advance the field.
Although Apple (NASDAQ:AAPL) Vision Pro gave the emerging metaverse field a bit of hope with hot sales of the gate, there is some concern that sales have since slowed drastically. Whether it’s the price tag ($3,499), limited battery life, the bulk of the device or a lack of truly mind-blowing spatial applications, it’s clear investors may need to be a tad more realistic concerning metaverse hopes.
Unlike the field of generative AI, which pretty much took off overnight, the field of spatial computing seems to offer steadier, incremental growth — not a bad thing for long-term investors who think in terms of decades. Here are three strong buy metaverse stocks for investors to casually stroll into the next digital frontier.
Meta Platforms (META)
Meta Platforms is one of Wall Street’s favorite stocks, and the metaverse has little (if anything) to do with it. The company is a powerful AI innovator that does targeted ads far better than most. Indeed, the company may be even more attractive in the eyes of investors if it wasn’t spending so much on its ambitious metaverse projects.
Though investors may give metaverse projects a “thumbs down,” I do believe that billions spent on such initiatives aren’t just a big waste. Big bets on metaverse software and VR headsets probably won’t lead to much over the next few quarters or even the next few years. That said, every iteration of the Quest headset, I believe, is one step closer to getting to achieving the metaverse for the mainstream.
Nobody knows how many more iterations of Quest it will take before headsets become as commonplace as television sets. Perhaps it’s 2028, or maybe it’s closer to 2034.
Regardless, whichever firm convinces the masses to buy a headset and wear it for a big chunk of their day, whether for work or gaming, will generate a ton of advertising revenue. Meta is thriving today with AI and its social-media business, and as it continues to invest in the distant future with the metaverse, my guess is it will also be thriving in 10 to 15 years.
Apple (AAPL)
If there’s one company that can sell a new revolutionary product to the world, it’s Apple. The company’s Vision Pro headset has been selling, but I think it’s just a few years too early for mass adoption. However, I think that’s by design, as Apple looks to build up its ecosystem with a bit of help from early adopters and developers.
Apple Vision Pro will not be for everyone in 2024. But give it a few iterations, and I think the product line could be ready for mass appeal within 10 years. The spatial computer’s cost is the biggest hurdle that Apple needs to overcome. Beyond that, though, I think Apple is already on the right track, as it looks to lead the charge on per-watt processing performance with its custom-made silicon.
Indeed, it’s easy to dismiss Vision Pro, just like Meta’s metaverse these days. But give it a decade, and such products may very well mark the next big seller after smartphones.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has been the number-one AI chip stock to have the core of one’s portfolio these days. Explosive demand for its latest AI accelerators may very well continue to drive the stock to even higher highs. However, beyond this initial AI boom, I think the company’s Omniverse platform could evolve into the next big growth driver. Indeed, CEO Jensen Huang always seems to be thinking years ahead of many other top bosses in the industry.
With Omniverse, the company’s version of the metaverse, Nvidia seems poised to be a top enabler in the field of spatial computing, specifically for enterprise customers. What’s most striking is how many big-name firms Nvidia has already teamed up with to advance the Omniverse. Indeed, something as ambitious as a metaverse or Omniverse needs the backing of a big group of early adopters if it expects to break through into the mainstream.
With the Omniverse coming to Apple Vision Pro devices, it will be interesting to see if Nvidia can unlock next-level growth in spatial computing as it has in AI chips. I think there’s a good chance it can.
On the date of publication, Joey Frenette owned shares of Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
