In entertainment, video games have taken the lead, enchanting younger audiences. That makes it especially attractive to investors to find top gaming stocks to buy.
With around 3.09 billion gamers worldwide, a figure projected to swell to 3.32 billion by 2024, the implications for gaming stocks are immense. This surge in player base is fueling the global gaming market, which expected to reach a staggering $682 billion by 2030, at a 13.6% CAGR from 2023 to 2030.
Furthermore, the U.S. gaming industry is booming due to mobile gaming’s expansion and fresh console tech. The introduction of 5G networks nationwide is set to supercharge this trend, overcoming previous mobile gaming limitations due to low bandwidth and latency. With that said, three gaming stocks stand out amidst a highly competitive market, capturing investor interest and setting the pace for the industry’s future.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) recently made significant advancements in the gaming industry, aiming to broaden its influence. With its strategic acquisition of Activision Blizzard (NASDAQ:ATVI), MSFT catapults into the position of the world’s third-largest gaming company, significantly expanding its empire. This move strengthens Microsoft’s mobile, PC, console and cloud gaming presence while setting the stage for its emerging meta-verse initiatives.
Moreover, the anticipation for Microsoft’s innovative disc-less Xbox console, alongside the unveiling of advanced Windows 11 gaming PCs by MSFT and its partners, showcases the firm’s drive to pioneer a new era in gaming technology.
Financially, MSFT witnessed a remarkable surge of 56.53% in its shares over the past year and reported revenue of a whopping $62.02 billion, a 17.7% year-over-year (YOY) increase. Earnings-per-share (EPS) also reached $2.93, outpacing forecasts by 16 cents. TipRanks analysts demonstrate further optimism, assigning MSFT a ‘strong buy’ rating with an upside potential of 14.7%.
Electronic Arts (EA)
Electronic Arts (NASDAQ:EA), a pioneer in the gaming industry, continues to dominate with its iconic sports titles like FIFA and Madden, has enjoyed a commendable 20% stock increase over the past year. EA’s engagement with the eSports community, through events like the EA Sports WRC Knockout Trophy ’23 and the Apex Legends Global Series, continues bolstering its global reach.
The launch of the latest iteration of its hugely popular soccer video game, EA SPORTS FC 24, continues to underscore EA’s strength in the sports gaming sector, with over 14.5 million active accounts in just the first month. Financially, EA shines, with EPS hitting $1.07, surpassing estimates by 17 cents, and revenue growing 1.02% YOY. These impressive financials, backed by a ‘moderate buy’ rating from TipRanks analysts and anticipated upside potential of 11.78%, highlight EA’s promising future.
Nintendo (NTDOY)
Nintendo (OTCMKTS:NTDOY) has consistently captured gamers’ imaginations, with its stock soaring 49.8% in the past year. With this rise, speculation intensifies around Nintendo’s next-gen system, potentially named the Switch 2. Targeted for a late 2024 release, the new and improved console is expected to revolutionize the gaming world again.
Moreover, Nintendo’s strategic partnerships and diverse game lineup further strengthen the Switch platform. Partnering with Microsoft to introduce Xbox-exclusive games such as ‘Grounded’ and ‘Pentiment’ to the Switch showcases Nintendo’s innovative approach. Additionally, the recent Nintendo Direct: Partner Showcase highlighted the resurgence of its beloved games of the past, which are poised to be major money makers.
Financially, Nintendo reported a remarkable $4.05 billion in revenue, surpassing estimates by $161.04 million. Its projection to sell 15.5 million Switch units by the end of March is a testament to its robust market presence. Wall Street analysts also assign Nintendo a ‘strong buy’ rating with an anticipated 129.46% upside potential, making it an attractive choice for investors.
On the date of publication, Muslim Farooque 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.
