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.
It has long been the poor stepchild of INTC-Q. Now they are competing with NVDA-Q, which is being hit by a competing game. The chips were used to mine bitcoin but that is no longer profitable. When they hit a product it can really move the company. He prefers Broadcom. (Bruce Murray)
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.
Unfortunately, it had a big earnings miss. A very whippy stock. It can be a big pop or a big drop on earnings numbers. There is a lot of hype and expectations. Technically it has broken because of its bad earnings quarter, and it is going to face a long road up. (Cameron Hurst)
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.
It reports this week. If you listen only to the news and ignore the financial data, you'd conclude FB has fallen on hard times. During last year's bad headlines, they grew revenues 35%. This quarter, he expects year-over-year revenue growth to be 36%. FB boasts 2.3 billion active users. It's a great ad reveue model.…
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.
Big data alone will represent 30% of all data stored in data centers and Google is the leader here. Decently price with a PEG ratio of 1.61. They have great non-advertising revenues streams. A gem. 5.5% position in their portfolio. (Analysts’ price target is $1368.82) (Kim Bolton)
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. (John Stephenson)
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. (Don Lato)
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.
Haven't owned it since 2001. A little overpriced. Still a medium-risk stock. (Mike S. Newton, CIM FCSI)
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.
They took profit on this stock. Terrific company. They have a price target of $195. They think they can buy it back. There is a big transformation in the game space as mobile side is now . 25% and will be 50% in the next 12-18 months. (Kim Bolton)
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.
Nokia vs. Ericsson. He's taken profit on both, and they're out of both and looking for them to come back. Nokia top and bottom line missed on both. For Ericsson, he'd look to buy back in around 890. Both benefited from the Huawei controversy. But now a lot of the European telecoms and IT companies…
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.
Own a position in a high-quality company like this and hold for the long term, then add when the street is critical of it. They have a ton of cash and are a great innovator. (Colin Stewart)
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.
The stock is acting well. The volume is not much. It has been acting well after the Pokey man thing. He would continue to own this. (Elliott Fishman)
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.
This is not only a technology company. Much of its earnings are coming from games and movies. Both those areas are very difficult to predict. He sees better value elsewhere. (Lorne Steinberg)
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. (Gordon Reid)
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.
(A Top Pick Apr 25/18, Up 16%) There's a new CEO. This old-tech stock has done very well. He's long recommended it. (Brian Acker, CA)
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.
Semis reflect the general economy. Last year they peaked out early, but definitely improving since the start of the year. Semis have recently broken to new highs. Hold this, because it will go higher through this new cycle into 2021/2022. (Javed Mirza)
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.
He has been cautious on tech generally as there has been so much money going into the sector. The valuation is still cheap, but getting towards higher levels and recent earnings did not prove up these metrics. He would look to add to his position on this pullback. (David Dietze)