3 Tech Stocks To Buy For The Virtual Reality Revolution

With some of the biggest names in tech investing billions in virtual reality, which many see as the future of both entertainment and communication, now might be the best time to buy stocks poised to benefit from VR’s growth before the industry really booms.

The mainstream commercialization of VR is still in the early stages of development. Zion Market Research estimated that the global virtual reality market was valued at just $2.02 billion in 2016. However, by 2022, the firm projects that the industry will bring in $26.89 billion, growing at a CAGR of roughly 54% between 2017 and 2022.

With that said, let’s take a look at three tech powerhouses that could be great VR stock plays ahead of this massive growth.

1. Facebook (NASDAQ:FB)

Facebook’s purchase of Oculus VR for $2 billion in early 2014 helped usher in a new wave of virtual reality in Silicon Valley. Oculus VR headsets are some of the most popular in the current market, and the company has introduced several new models with the last few months.

Outside of Oculus, Facebook has invested heavily in VR tech and rolled out its own virtual reality hangout platform called “Spaces” not too long ago. On Monday, Mark Zuckerberg’s company announced that it invented a new unit of time, which is slightly longer than a nanosecond, called Flick. The hope is that Flick will allow for a more crisp VR experience. Facebook is currently a Zacks Rank #2 (Buy) and sports an “A” grade for Growth in our Style Scores system.

2. Sony (NYSE:SNE)

Japanese entrainment and electronics giant Sony is a great VR pick because of its widely popular video game console, PlayStation. The console’s new PlayStation VR has sold two million units. Sony has also sold 12 million PSVR games and recently introduced a new model of its VR tech.

On top of that, Sony Pictures released an accompanying VR experience for the recent release of its new film Jumanji: Welcome to the Jungle. Going forward, Sony is likely to see continued growth in its VR video gaming segment, as it slowly pushes towards a more immersive movie experience. Sony is currently a Zacks Rank #1 (Strong Buy) and boasts an overall “A” VGM score.

3. Nvidia (NASDAQ:NVDA)

Video gaming chip giant Nvidia is already helping power the VR industry, but the company is ready to keep expanding its VR division as the market becomes more mainstream. Nvidia currently boasts multiple VR solutions, including its industry-leading Pascal GPUs. The Pascal GPU has helped Nvidia expand its VRWorks segment, which tries to create more life-like VR experiences.

Nvidia’s other virtual reality goals include creating better 360-degree video solutions, faster processors, and a better mobile VR performance. Nvidia is currently a Zacks Rank #2 (Buy) and boasts an “A” grade for Growth.

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