Stocks to buy

The digital domain of the metaverse remains a massive opportunity for many sectors. With its massive potential applications, it’s no surprise that it’s drawn significant investment from major tech companies and corporations. Many consider it a massive market for long-term growth, resulting in investors to zero-in on top metaverse stocks to buy.

The magnetic charm of the metaverse has captivated both businesses and investors. However, once considered a golden ticket to quick riches, metaverse stocks have lost some of their sheens. They are perceived as high-risk investments, a stark contrast from the frenzy of late 2021.

Despite the cautious sentiment, it’s essential to remember that these stocks still offer robust prospects. High-potential metaverse stocks continue to present a viable investment route. As the metaverse concept matures, leading stocks in the metaverse offer considerable promise for long-term returns. Therefore, keeping an eye on the top metaverse stock picks is imperative.

Top Metaverse Stocks to Buy: Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) envisions the burgeoning metaverse as a virtual universe that mirrors the physical world, where its users can interact effectively in real time with artificial intelligence (AI) and other users. The firm is leveraging its robust competencies in AI, graphics, and computing to develop the foundational technologies for the metaverse.

Its groundbreaking Omniverse platform, for instance, is a leading collaborative virtual environment that enables its users to create and simulate virtual worlds. The metaverse aims to have broad-ranging applications across various sectors, including design, autonomous systems, entertainment, and others.

More than 150,000 individuals have downloaded the software-as-a-service platform, particularly stimulating enterprise users’ intrigue. For instance, tech giant Amazon (NASDAQ:AMZN) operates more than 200 robotics facilities for daily package handling, supported by over 500,000 mobile robots. Leveraging NVIDIA’s Omniverse Enterprise, Amazon Robotics is creating AI-powered digital twins of its warehouses, effectively improving warehouse design and workflows and training smarter robotics solutions.

Roblox (RBLX)

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Roblox (NYSE:RBLX) has established its position as a front-runner in the metaverse realm with its expansive digital universe. Its digital universe has become a melting pot of games, art, and entrepreneurial endeavors, with over 40 million games created on its platform since late 2022.

Its active user base soared during the global pandemic, with an estimated 50 million users signing up in 2020. However, post-pandemic headwinds weighed down its operating metrics, which had investors fretting over its long-term outlook. Nevertheless, it’s back to winning ways, with a 22% bump in average daily active users to 66.1 million. Moreover, engaged users increased 23% from a year ago to $14.5 billion. Additionally, sales were up an impressive 22% year-over-year to $655.3 million.

As we advance, Roblox’s robust performance and innovative strategies, including its highly anticipated roll-out of immersive ads, make it a compelling consideration for investors eyeing the metaverse landscape.

Unity Software (U)

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Unity Software (NYSE:U) is a leading player in the real-time 3D content creation space, establishing a dominant position in the metaverse market. Its platform is essentially a toolbox for developers to build immersive 3D environments, a cornerstone of the metaverse. Unity’s widespread use and potential for growth in the burgeoning metaverse market make it a noteworthy contender for investors.

The company’s financial performance has been tremendous, with it boasting a 56% year-over-year in sales during the first quarter. Moreover, it raised its fiscal 2023 outlook, with the higher end of its guidance expected to beat estimates by a comfortable margin. Additionally, analysts project that by the end of 2024, revenue could reach a staggering $2.6 billion, representing a whopping 87% increase in sales from last year’s figure.

If Unity maintains its financial trajectory, we could see a colossal increase in its stock price by 2030. As the gaming industry expands, Unity is well-positioned to capitalize on this growth.

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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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