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.
Their big competitor, Intel, disappointed with their report, but he expects AMD to blow away when it reports next week. Xilinx wants AMD to pay a big premium as AMD buys, it, but he doesn't think AMD's CEO (whom he admires) will accept that.
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.
He continues to like it here. Digital advertising continues to grow. They are doing a bunch of the right things. Digital animadverting will continue to grow.
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.
(A Top Pick Nov 05/19, Up 26%) It is not an expensive stock. There is still secular growth. They have a strong franchise in search. He thinks their CAP-X spending will continue to drive them. Yahoo is bigger than Google, but Google just has a better product so he thinks antitrust is not an issue.…
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.
He expects them to report excellent numbers on Tuesday. The CEO is excellent. Their problem is that they have business than they can handle.
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.
It is a great sweet spot. Gaming and graphic chips have done well for them as well as cloud. In AI they have a big push. It has taken away the glow that INTC-Q used to have. It is not a cheap stock but NVDA-Q is in the right area of the chip industry to…
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.
Stockchase Research Editor: Michael O'Reilly NOK is emerging as a key 5G player, being #2 in holding 5G essential standard patents. As China-based Huawei continues to be embroiled with the US over national security issues, this is not an issue for this Finland based company. With next year's earnings growth exceeding 19% against its forward…
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 trimmed his position as it became a large position in his portfolio. It continues to execute very well. The 5G phone will take time because it is proliferated through North America. He prefers stocks to ETFs but an ETF could work if you prefer not to pick a stock.
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 a big fan of branded technology. A product launch story where you get a big upsurge in revenue (like EA) and they have to carry a lot of cash. A volatile cycle that moves too much for his taste.
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.
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.
Stockchase Research Editor: Michael O'Reilly We are looking for an opportunity to purchase INTC a little cheaper than at current levels. Slow downs in government spending hurt their recent revenue report and analysts are downgrading the stock presently as a result. We look to buy this just under $40, looking for upside back towards $58…
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.
Their D-RAM business may be saved by their disc drive business, but he doesn't see a stock rise unless management says they see tightness coming in D-RAM.
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.