The metaverse is currently a hot topic, and with good reason. It is expected to grow by up to 48% per year until 2029, making it a highly lucrative sector to invest in.
As a result, businesses in social networking, gaming, and cloud computing also stand to benefit from the increased interest in the metaverse.
Metaverse tokens or stocks?
One way to invest in the metaverse is through metaverse tokens, which can be used as a form of investment in shares of a metaverse company. Another option is to invest in the metaverse space through virtual land purchase or acquisitions of digital assets.
Three companies that are well-positioned to benefit from the growth of the metaverse are Nvidia, Advanced Micro Devices (AMD), and Match Group (MTCH).
Nvidia is a US corporation that designs graphics processing units (GPUs), application programming interfaces (APIs) for data science and high-performance computing, and system on a chip units (SoCs) for the mobile computing and automotive markets.
Omniverse another metaverse
Nvidia is expected to benefit greatly from the growing interest in the metaverse in 2023, thanks to its “Omniverse” platform, which allows users to create and design items for the metaverse. The market is expected to contribute billions of dollars to Nvidia’s earnings in the long term as the sector grows.
Advanced Micro Devices (AMD) is another US-based company that makes semiconductors. Its chips are used in data centers and are suitable for end products.
While AMD is not directly involved in the metaverse, it is expected to benefit from the growing demand for its products from crypto miners. As mining increases, so will sales for AMD, making it a sort of “shovel manufacturer” for the metaverse.
Tinder-owner on a roll
Match Group (MTCH) is a group that dominates the online dating industry including the overly popular dating app Tinder, with a market share of over 60%. It has a significant asset portfolio in the industry and generates significant free cash flows, equivalent to around 28% of its sales.
Its recent announcement that it will invest in a dating metaverse and a virtual currency means that it will naturally benefit from the buzz around the metaverse. By encouraging virtual encounters, the company will be moving away from its core business of encouraging offline relationships on its platform.
Worth considering
In conclusion, we believe that the metaverse is a highly promising area with a lot of potential for growth. Investing in metaverse stocks can be a great way to take advantage of this growth.
The three companies mentioned above are well-positioned to benefit from the growth of the metaverse and are worth considering for investment. In any case, its important to understand the value of the security before allocation and funds to the said asset. One needs to carefully study and analyse their fundamentals to determine whether one is making a sound investment decision.