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Augmented reality, though in its infancy, is poised to transform various industries with recent innovations set to bring products to the market and reduce costs. Estimated to reach $58 billion by 2028, the AR sector is projected to drive sales of $38 billion this year. This significant potential makes it a prime arena for investors eyeing substantial returns.
Yet, with numerous new players vying for attention in the burgeoning tech realm, making sound investment choices is crucial. For those seeking augmented reality stocks, it is prudent to gravitate towards established household names with proven track records. As such, here are three top AR stocks to consider.
Apple (AAPL)
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Apple (NASDAQ:AAPL) is poised to achieve a groundbreaking $4 trillion market cap, fuelled in part by its foray into augmented reality. With the sale of approximately 200,000 Vision Pro headsets, valued at $3,499 each, the company has already made considerable strides. Anticipated to gain momentum as early adopters showcase the product’s capabilities, sales are expected to surge once unit costs decline.
However, a looming concern is the likelihood of the Vision Pro siphoning sales from Apple’s existing product lines, specifically its waning tablet and iPad sales. Apple stands at a crossroads, awaiting the stabilization of Vision Pro sales and pondering whether the new hardware and AR tech will mirror the impact of the iPod in the mid-2000s. Nevertheless, Apple is undeniably the dominant player in the AR stock arena, making it a top contender for investors seeking a dependable entry into this emerging market.
Meta (META)
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Meta (NASDAQ:META) closely trails Apple but is expected to mount a significant challenge. In a pivotal consumer review, Apple’s Vision Pro and Meta’s Quest Pro both garnered a commendable four-star rating, with the Quest Pro priced substantially lower than Apple’s offering. Rather than presenting itself as a subpar alternative to Apple, Meta has positioned itself as a cost leader capable of driving innovation sans the brand-name premium often associated with Apple. This places it among the top contenders in the AR stock realm.
Beyond the Quest Pro, Meta has a potentially game-changing project in the pipeline, likely related to its AR initiatives. Mark Zuckerberg recently disclosed substantial spending on Nvidia (NASDAQ:NVDA) chips. Although Meta’s AI ventures undoubtedly contribute to this expenditure, its burgeoning “massive compute infrastructure” is poised to support AR platforms, particularly post-integration with AI. Comparable to Apple, Meta is a stalwart presence among augmented reality stocks, offering a safe bet for harnessing new trends as the sector evolves.
Qualcomm (QCOM)
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Qualcomm (NASDAQ:QCOM) stands as one of the most significant manufacturers of augmented reality today, safeguarding its position from potential new entrants and existing rivals. Its alliance with Samsung and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) cements its premier role in industry-leading hardware and could mark the next pivotal shift as the augmented reality market matures.
This collaboration aims to develop a comprehensive mixed-reality platform leveraging Qualcomm’s technology, Samsung’s hardware, and Google’s investments in AR tools. While no specific product announcements have been made, analysts anticipate the venture will yield a series of headsets introducing consumers to novel virtual reality experiences and generating substantial revenue for Qualcomm.
Meanwhile, QCOM continues to enhance its expansive array of virtual reality products, including headsets. Equipped with the latest WiFi technology and eye-tracking capabilities courtesy of its Snapdragon processor, the company is fostering innovation in the augmented reality space while establishing new industry benchmarks for others to emulate.
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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