Unleashing the Potential: Embracing the Evolution of Augmented Reality with 3 Powerhouse Stocks Unleashing the Potential: Embracing the Evolution of Augmented Reality with 3 Powerhouse Stocks

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Augmented reality (AR), still in its early stages, is set to grow rapidly as recent innovations bring new products to market and ultimately reduce costs. Estimating the market value of augmented reality is challenging, yet conservative predictions suggest it could reach up to $58 billion by 2028, with $38 billion in sales expected this year alone. That growth makes AR stocks a hot opportunity to capitalize on long-term tech trends still in their relative infancy.

With the emergence of any new technology, a flood of new companies, startups and innovators are entering the market, seeking investor attention. But not all will succeed. For those interested in strong buy AR stocks, sticking with well-known, reputable companies is the safest bet today.

Embracing Innovation: Qualcomm (QCOM)

Qualcomm (QCOM) logo on an outdoor sign

Source: Akshdeep Kaur Raked / Shutterstock.com

Qualcomm (NASDAQ:QCOM), a leading augmented reality manufacturer, is unlikely to allow new market entrants or current competitors to usurp its position. Its collaborative effort with Samsung and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) reinforces its dominance in hardware and signals a promising future as the augmented reality markets evolve.

The partnership plans to develop a comprehensive mixed-reality platform, capitalizing on Qualcomm’s technological expertise, Samsung’s hardware prowess and Google’s investments in augmented reality tools. While we’re waiting for a definitive product announcement, industry analysts predict the collaboration will result in a series of headsets offering novel virtual reality experiences, which could significantly boost Qualcomm’s revenue.

In addition, Qualcomm is continuously upgrading its broad virtual reality product array, including headsets. Equipped with Qualcomm’s Snapdragon processor, these products feature the most advanced WiFi technology and eye-tracking capabilities, driving forward innovation in the augmented reality domain and setting new benchmarks for the industry.

Pioneering Progress: Apple (AAPL)

Close-up of Apple (AAPL) retail store Logo in Honolulu at the Ala Moana Center. Advertising the latest generation of the ipad, iphones, and ipods with a Retina display.

Source: Eric Broder Van Dyke / Shutterstock.com

Though a ways off from its past $3 trillion market cap, Apple’s (NASDAQ:AAPL) ventures into augmented reality remain a top prospect for investors looking for strong buy AR stocks. The company has impressively sold as many as 200,000 Vision Pro headsets already, despite its hefty $3,499 price tag. Sales are expected to increase as the product’s capabilities become evident to early adopters, and the cost of units eventually declines.

A potential issue on the horizon is the possibility of the Vision Pro cannibalizing sales from other Apple products, particularly tablets and iPads, which are already experiencing a sales decline. Apple finds itself at a pivotal moment, anticipating the stabilization of Vision Pro sales and determining whether this new hardware and augmented reality technology will be a temporary trend or replicate the groundbreaking impact of the iPod in the mid-2000s. Regardless, Apple currently stands as the leading augmented reality stock, making it an excellent choice for investors seeking a blue-chip entry into the burgeoning market.

Trailblazing Tomorrow: Meta (META)

In this photo illustration the Meta logo seen displayed on a smartphone and in the background the Facebook logo

Source: rafapress / Shutterstock.com

Meta (NASDAQ:META) closely trails Apple but might soon overtake it as a leader in the augmented reality (AR) market. A major consumer review has placed Apple’s Vision Pro and Meta’s Quest Pro on equal footing, rating them both at four stars. However, Quest Pro’s much lower price point positions the product not merely as a cheaper alternative to Apple’s but as a cost-effective innovator independent of the brand-name weight Apple carries. That distinction makes Meta a compelling AR stock option.

Beyond the Quest Pro, Mark Zuckerberg and his team are reportedly working on projects that could significantly impact their AR efforts. In mid-January, Zuckerberg announced significant investments in Nvidia (NASDAQ:NVDA) chips. The move supports Meta’s AI development and suggests a major commitment to building a “massive compute infrastructure” likely to enhance AR platforms, particularly with AI integration.

Matching Apple in the realm of blue-chip AR stocks, Meta represents a reliable investment to tap into emerging trends within the developing AR sector.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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