Augmented reality stocks represent companies that overlay computer-generated images onto the user’s real-world view. It involves more than just images with other sensory elements such as sound.
Application of augmented reality (gold) is extensive. But whatever the application, investors should keep in mind that one of the primary goals of augmented reality is to increase overall data collection.
In my opinion, this is one of the best reasons to believe that augmented reality stocks have the potential to create wealth for your children’s children. All data collected through AR devices will be used by companies to improve their products. They will have a first-person perspective of real-world usage of their products as a result of AR.
Privacy concerns aside, AR has the potential to significantly increase companies’ ability to better tailor products and services to consumers. What follows is a discussion of two stocks that directly manufacture AR devices and one that is a supplier. All three have the potential to reward future generations.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) is an obvious choice among augmented reality stocks for your children’s children.
Formerly known as Facebook, Meta Platforms undertook a drastic rebrand at the end of October 2021. The company was clear that it wanted to capitalize on the metaverse buzz prevailing at the time.
The renaming was a disaster. Inflation was red hot and rate hikes would soon end the party for all things growth. That would sink the economy and hurt the app reporting division of the Meta Platforms family, which relies heavily on Facebook ad revenue.
That revenue has rebounded strongly recently, but Meta’s Reality Labs division continues to bleed cash. Reality Labs is where the company continues to develop AR headsets and other products and services for the futuristic sector. META stock is strong and has done very well in 2024, rising 45%. This is the point of investing in Meta Platforms for AR: while Reality Labs may not have found its footing yet, META is nonetheless incredibly strong.
That said, there are some real bright spots at Reality Labs. Revenue from the reporting segment grew nearly 30% in the first quarter to $440 million. The growth is there. The opportunity is there, it’s just not profitable yet.
So, I would argue that investors should choose Meta Platforms for its ability to capture strong economic performance and secondly for exposure to what could be a future cash cow in AR.
Apple (AAPL)
Source: View Apart / Shutterstock.com
Apple (NASDAQ:AAPL) is another dominant tech stock with deep AR aspirations and current developments. Investors who believe that AR will change the future and create wealth in the process should certainly consider investing in Apple.
That’s not to say that Apple is currently making big waves in the world of augmented reality. It is quite the opposite. The Vision Pro has not met initial sales expectations in 2024. It was a highly touted product in 2023, but attracted almost no attention in the summer of 2024.
Apple’s AI ambitions are the main talking point right now. My expectation is that Apple will work with AI in AR headsets moving forward. The company will certainly continue to work to find the product because the opportunity to collect more data is simply too great.
Apple’s iPhone sales are expected to rebound after the newly released AI is implemented in its phones. This is why investors should consider buying a hot company. Its AR capability remains to be determined, but the potential is massive and clear.
Taiwan Semiconductor Manufacturing (TSM)
Source: Sundry Photography / Shutterstock.com
Semiconductor manufacturing in Taiwan (NYSE:TSM) is another great stock for the long term. It is a company and capital that promises to reward investors for a long time.
At the moment, TSM is riding the back of the AI boom. It provides manufacturing for the world’s top semiconductor firms, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and most chip firms in the world.
However, TSM is a contract manufacturer for many industries, not just those for AI applications. AR hardware requires advanced chips to handle the computing demands that support the technology. This strongly suggests that Taiwan Semiconductor Manufacturing will also benefit from the emergence of the AR opportunity.
For now, invest in TSM because it is the foundry for the world. It supplies chips that are increasingly in demand as everything becomes further digitized. Whether it’s AI or AR, TSM is a great choice.
As of the date of publication, Alex Sirois did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publication guidelines.
At the date of publication, the editor in charge did not hold (directly or indirectly) any position in the securities mentioned in this article.
#augmented #reality #stocks #childrens #children
Image Source : investorplace.com
Leave a Reply