Virtual reality and augmented reality are the newest platform for entertainment, and even productivity. Apple recently announced a further investment in AR technology. This developing sector has enormous potential and a myriad of possible applications, and the market is sure to grow.
Here are the top technology companies working on artificial and augmented reality.
Advanced Micro Devices (AMD-Q)
AMD is working on their Liquid VR technology that provides an ecosystem for companies to build on. Their technology allows for near-photorealistic imagery in real-time.
Intel's rally today pushed rival AMD down nearly 4%, which makes it a buying opportunity. The CEO is excellent, now making better chips than rival AMD.
3D Systems (DDD-N)
Involved in VR – 3D Systems creates specialized simulators using VR headsets to train healthcare professionals. They’re also a leader in 3D printing and scanning, which can be rendered in virtual reality.
Involved in AR – Facebook is working on their own augmented reality glasses. They’ve already registered some patents and recently expanded their Facebook Reality Lab to continue their work.
Given political clouds from Washington They lead the charge in where society is going in social interaction and networking, but on the other side people are screaming that Facebook is not doing what they intended to do. Are they a publisher? Responsible for what users write? This is a very difficult question. Nobody wants to…
Alphabet Inc (C) (GOOG-Q)
Involved in VR and AR – Google is no stranger to VR, launching their first virtual reality viewer in 2013. They have started experimenting with mobile VR advertising format, and the company is rumoured to be building a new version of Glass. They also provide an augmented reality platform called ARCore.
Revenue growth will continue to be strong. Will benefit from more and more digital advertising. If he had to choose this or Facebook, he'd choose FB, but it's close.
GoPro Inc (GPRO-Q)
Involved in VR – GoPro launched their Fusion Camera, which allows creators to create 360-degree virtual-reality footage. They also made their VR player technology, Forge.js, open-source and free so people can create their own VR experiences and host them on a user’s website.
(A Top Pick Jan 25/16. Down 1.98%.) *Short*. Shorted this because we were having momentum to the downside in the market. Also, this had a high valuation.
Hewlett-Packard Co (HPQ-N)
Involved in VR – HP already has a Windows Mixed Reality Headset, which takes advantage of Windows software to play games, live stream and more.
He doesn't follow this closely, but it's in a strong sector. HP probably suffered an earnings decline recently. He owns Apple and Google instead--he'd rather bet on tech here. Nothing wrong with HP though, but it's not as strong as these two.
Involved in VR and AR – Microsoft’s Hololense is a mixed reality headset, that allows you to see holographic images appear win the real world. Their headset can also connect to Xbox and provide an immersive gaming experience.
It trades in the mid-30s, an historically high PE for them, but MSFT is very well-managed. The CEO has really turned the ship around from software to the cloud. Fine operations. They just invested in GM's Cruise division of self-driving cars, so this is exciting (he owns GM). He has nothing but admiration for MSFT.
Nvidia Corp (NVDA-Q)
Involved in VR – Nvidia created the GeForce RTX GPUs to drive VR experiences. Their GPU allows for more immersive, and real-time graphics.
Essential chipmaker with business in gaming, data centres and high-end AI machine learning. When ARM Holdings deal is complete, NVDA will have a huge processor business in computer and especially mobile devices.
Involved in AR – Nokia cancelled their Ozo camera program, which captured 360-degree virtual reality footage. However, they are working on including more AR features in their cellphones.
(A Top Pick Oct 22/20, Down 11.7%)Stockchase Research Editor: Michael O'Reilly We are recommending the exit of NOK as it has breached our recommended stop-loss at $3.75. The company just reported earnings that missed on both the top and bottom lines and reduced its balance of 2020 guidance by 10%. We are going to be…
Involved in AR – Apple is working on their Augmented Reality headset, and may launch it as early as 2020. They are also heavily investing in augmented reality for iOS, working together with companies such as GE, Ikea, and American Airlines to bring AR into the day-to-day.
Has owned this for 15 years, so he's happy with it. But every morning he asks, What is the future of this stock? Is capital employed the best way for the future? Apple has a tremendous franchise built in of at least 1.3 billion devices worldwide and 93% consumer brand loyalty. Add to that we're…
Nintendo Company Ltd. (7974-TYO)
Involved in VR – The Nintendo Switch is being rumoured to get a Virtual Reality headset. Although this is unconfirmed, the Switch console is said to attach to a headset to be used for games.
Allan Tong’s Discover Picks NTDOY stock pays a 2.81% dividend yield and trades at a 17x PE, compared to 27x a year ago. Activision Blizzard pays only 0.51% and trades at nearly 24x. The Home of Mario does face competition from the PS 5 and the Xbox, but these are nothing new. As of this…
Himax Technologies (HIMX-Q)
Involved in VR and AR – Himax produces non-driver components for AR and VR as well as 3D-sensing devices. Their main revenue source is display driver ICs that are used in smartphones, tablets and monitors.
Virtual reality and a chipmaker? This is a chip company and they make chips for some of the virtual reality and augmented reality pieces. It has big potential. The stock fell really, really hard on earnings, but has recently come back again. The company is going to be volatile, but one of the few plays…
Sony Corp. ADR (SNE-N)
Involved in VR – Sony’s VR headset is intimately linked with their PlayStation console, offering an immersive gaming experience. It allows users to watch movies, play games and listen to audio in virtual reality.
Despite having an amazing run, Sony is undervalued as is the entire Japanese market. A definite buy.
Synaptics Inc (SYNA-Q)
Involved in VR – Synaptics announced a new virtual reality display driver and bridge last summer. They are the leading developer of human interface solutions and are building the components of VR headsets.
(A Top Pick July 8/09. Down 17.33%.) Touch screens technology and there was a competitive product that was driving prices down. Sold his holdings.
Involved in VR and AR – Intel launched their Vaunt AR smart glasses last year. Although they shut down this project, it’s almost certain that they are working on the next augmented reality and virtual reality project.
They just replaced their CEO after missing several sales misses. The new CEO did a good job at WMware.
Micron Technology (MU-Q)
Involved in VR and AR – Micron produces graphics memory chips for AR and VR use. They bring solutions to he problems encountered with increased bandwidth requirements for advanced graphics.
We have seen a run in semiconductor names. Recently has had a nice surge. The problem is that it is quite cyclical. When the market declines, you want to buy it. From a practical point of view, he wants structural growth stories that are sustainable in downturns. It is a little rich right now.
Western Digital (WDC-Q)
Involved in VR and AR – Western Digital is developing solutions for higher resolution on VR and AR digital display and faster speeds for real time experiences. They’re also creating a more lightweight, embedded data storage solution for virtual reality and augmented reality products.
China is building out its own technology hardware industry. China was the biggest net importer relative to their needs and will now displace US market share. This is a trade that you buy when it is weak. Don't add fresh money. He would prefer TSM-N.