The growth potential in the augmented reality market has become increasingly apparent. As evidence of this, major corporations have rebranded, announced AR/VR headsets, and made efforts to snap up digital acreage. Firms are clearly invested in the potential of the AR market for growth. Investors should be too. In fact, we’ll speak about a few of the top augmented reality stocks to buy now in just a moment.
Experts are pegging sector growth at 50% compounded annually between 2023 and 2030. Capital will flow into the sector freely during that period and it will result in tremendous upside for those firms that can seize the opportunity. Major tech names are leading the charge, but they aren’t the only names to watch as the field develops rapidly.
Augmented Reality Stocks to Buy Now: Apple (AAPL)
One of the top augmented reality stocks to buy now is Apple (NASDAQ:AAPL), which arguably has the most momentum of any stock in relation to augmented reality.
The stock could push even higher with its AR innovations, too. All as Apple moves to release its Vision Pro augmented reality headset in the first quarter of next year. It will be the company’s first new product release since the Apple Watch in 2015 and is expected to sell for just under $3,500 a pop.
Even better, Apple remains one of the market’s top investment opportunities thanks to its dominance of the iPhone, and augmented reality products. While iPhone sales are the main contributor to Apple’s success in time Vision Pro may be able to bolster the business, perhaps very positively.
Autodesk (ADSK)
Another one of the top augmented reality stocks to buy is Autodesk (NASDAQ:ADSK), a leading computer-aided drawing (CAD) firm. Its software dominates the space and has a large following across multiple industries. CAD allows designers to create 3D representations of physical objects and spaces, which has an obvious carryover to the world of augmented reality.
One of the more notable developments in that regard is Autodesk’s CAD-to-AR Autodesk Inventor. The technology integrates Unity’s (NYSE:U) game engine with an augmented reality engine. Autodesk is hoping that it can capture a significant portion of the market by becoming a go-to solution for creators in the field.
In addition, AutoDesk is working to develop a monetizable platform to take advantage of the opportunity to transform 2D designs into immersive and interactive models.
Augmented Reality Stocks to Buy: NexTech AR Solutions (NEXCF)
Or, take a look at NexTech AR Solutions (OTCMKTS:NEXCF), another one of the more interesting augmented reality stocks to buy. At the moment, it’s a penny stock but has multi-bagger potential. The company combines 3D and AR technologies, powered by AI. Thus, it benefits from having a lot of buzzwords attached to it. NexTech AR Solutions provides those solutions for the purpose of e-commerce marketing and events.
The company acts as a parent firm for firms that it develops or acquires. It spins those firms out to shareholders issuing dividends and retaining control in said firms. Thus far, NexTech AR Solutions has spun out two firms, ARway.ai (OTCMKTS:ARWYF) and Toggle3D.ai (OTCMKTS:TGGLF). Those firms both center on the augmented reality space.
The company is growing rapidly and has delivered more than 50,000 3D models to its clients to date.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) continues to develop AR glasses that will compete with Apple’s Vision Pro in the future.
What I find interesting is the design for Qualcomm’s AR glasses and the idea the product may one day replace cell phones. Granted, it’s tough to imagine users making calls through AR glasses instead of a phone, but I still believe such a product could offer a sizable catalyst for QCOM growth.
In addition, I believe QCOM is a strong investment because it provides dividend (2.95% yield) income and has defined aspirations that give it the potential to become much bigger moving forward.
Augmented Reality Stocks to Buy: Nvidia (NVDA)
Right now, Nvidia (NASDAQ:NVDA) is best known because of the emergence of artificial intelligence. The firm produces the most powerful AI chips and is benefiting from a massive spike in demand thanks to its position.
Nvidia is also a leader in the graphics space. It’s the leader in graphics processing units (GPUs) and has a huge presence throughout gaming in general. That graphics prowess will undoubtedly extend into the AR/VR/XR space moving forward.
It’s fair to say that investors will be watching Nvidia more in relation to AI in the near future. However, next year, major firms are releasing AR headsets. and that will shift some of the interest back to AR/VR/XR. In short, Nvidia is highly likely to continue to become a more and more dominant tech firm as time goes on.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) has sold more than 20 million VR headsets. CEO Mark Zuckerberg was focused on the fact that there are now more than 10 million active devices and stated that the figure represents a critical threshold for adoption.
It’s difficult to argue against that skepticism given the financial results that underpin Reality Labs. If 10 million active users is some sort of important threshold that signifies mass adoption then Meta should also let investors know what that means for losses. It’s hard to understand why investors should continue to buy into the rebrand if losses spiral further. Critical adoption shouldn’t coincide with bigger and bigger losses.
The point here is that if Meta wants to persuade investors of the AR opportunity it must do more to market the idea of mass adoption having already occurred. Meta states that mass adoption is here so Meta must proactively market that idea. That makes losses more palatable while also paving a path toward profitability.
Immersion (IMMR)
Immersion (NASDAQ:IMMR) stock is arguably a strong proxy of AR demand. The company develops and licenses haptic technology or the science of applying touch.
The reason I believe Immersion is a reasonable proxy for AR demand lies in its business model. The company’s revenues are almost entirely attributable to licensing. About $6.9 million of its $7 million in Q2 revenues came from licensing. A year earlier that ratio was $7.9 million of its $8 million in revenues for the period.
Immersion is a relatively small firm so it might not accurately represent AR overall. Nevertheless, it at least provides some sort of barometer. Fundamentally speaking, the positive sign for IMMR stock is that it has completed a turnaround. The firm posted a net loss of more than $1.8 million a year ago. That became a $7 million net gain in Q2 2023. If nothing else, IMMR is headed in the right direction.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
