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.
(A Top Pick May 4/17. Up 19%.) Basically, the stock was bought at $10.23 and he Sold a Call option on it. That money comes to you immediately, so he’s reduced his cost of the stock to $8.40. This got Called away on Oct 10.
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.
P/E ratio is 96X this year’s earnings. If earnings come to pass the way it is advertised to be, the P/E ratio will be 50 in a couple of years. Doesn’t think he has ever paid 50X for a stock in his life. Rather than this company, he would be looking at other companies that…
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.
He likes this chart. The up trend since early 2019 has been followed by a brief consolidation. A retest of $200 resistance would likely project back towards $220 or higher.
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.
One of the largest companies in the world, but there is a political head wind they are facing. Longer term, he believes the ad revenues will grow and this is a world leader in the space. He would look for a pull back to enter into a new holding.
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.
Camera manufacturer. This is one of those really, really hot IPOs. This company has gone from nowhere to taking over the world with their action oriented cameras. Stock has doubled from its IPO. A very expensive valuation, so you really have to believe that they can continue to grow the business and sell a lot…
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.
This is supposedly splitting into 2 companies. He doesn’t know if this is good or bad. A lot of their products are commoditized, and that is why they are focusing the printing division into a separate company. You might see this happen to a lot of large computer styled companies. Prefers others.
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.
MSFT vs. Amazon No, they don't compete with each other. Amazon is the best cloud host, but not for small/medium-sized businesses. Instead, MSFT fills this gap very well, at they collect recurring revenue doing this, like a utility. This stabilizes their margins and increases MSFT's growth.
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.
This is a semi-conductor stock that is usually too expensive to own, he thinks. He thinks its peak may have come and it is dangerously over-valued. He would avoid it here.
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.
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.
He is not an investor, but uses their products. The company has stagnating unit sales -- not very exciting given the premium it trades at. It is very expensive here.
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.
(Not listed on exchanges.) Nintendo. Very interested in this name. The comeback story of the year. People thought it would be driven out of the gaming business but the Wii has been a tremendous successful platform. Hasn't done an evaluation of it but will be looking at it.
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.
One of the world's giants in consumer electronics. Very fine company. Starting to see the old stodgy management change. There's an American who's running it now.
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.
Touch screen technology. Whether its notebooks, netbooks or smart phones, touch screen is becoming more popular. A fantastically growing area. Has large market share. Trading at a very reasonable multiple and is expecting 25% annual growth.
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.
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.
It’s getting wiped out with everything else. Not scared of volatility in a stock like this. It’s had a great ride. Very healthy pullback. Still likes it, would still own it.
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.