So you tried virtual reality for yourself and recognize its potential. Congratulations, you are now officially a believer. You know what only a handful of people in the world have come to realize. You know that virtual reality is the future! So now that you have this valuable knowledge, how do you capitalize off of it? They say that knowledge is power so how can you use this power to make a quick buck?
One common way is to invest. There are a few companies right now that are making big strides in virtual reality. An investment in these companies today could mean big dividends for years to come if virtual reality delivers on its promises in the next decade.
Before I get into my specific investment advice, I have to mention that I am not a financial expert. I am just a VR enthusiast who is arrogant enough to believe he can predict the future. I strongly recommend you use your own judgment when it comes to your hard earned money. That being said, there is a real opportunity for investment in the VR space right now. If you are still curious about investing in VR, then the following companies are some of your best bets in my opinion.
Option #1 (If you think VR is going to change social media)
Facebook is in it to win it. Mr. Zuckerberg and friends coughed up $2+ billion dollars (yes, that’s billion with a “b”) to purchase Oculus. Oculus is well known for spearheading the recent VR movement with its headset, the Oculus Rift.
While sales of the Rift have been losing ground recently to alternatives such as the Playstation VR and HTC Vive, the Oculus brand is still poised to dominate the market when VR takes off. Mainly because it has the money and resources to grow over the long term. Facebook wouldn’t have spent 2 billion dollars on Oculus if they weren’t in it for the long haul so don’t expect a few recent setbacks to scare them off.
Zuckerberg himself said the following in an interview with Bloomberg Magazine, “This is a good candidate to be the next major computing platform. It’s worthy of a lot of investment over a long period.” Obviously, Facebook specializes in social media and networking. If you agree with Zuckerberg and think that VR has a lot of useful applications for these types of social activities then Facebook is a company you should seriously consider adding to your portfolio.
Option #2 (If you think VR’s strength is in gaming)
Sony has seen some tough times of late. Many analysts have suggested that the company has spread itself too thin. Sony has dabbled in phones, computers, televisions, video games, cameras, just to name a few. This, in combination with harsh competition from their Korean and Chinese competitors, has made this Japanese company a risky investment in recent years.
However, there is one division of Sony that is thriving and that’s their gaming division. As gigantic as the company is their Playstation division (aka their gaming division) accounted for a whopping 78% of their profits in 2016. This means that every financial incentive surrounding the company is pushing Sony towards a heavier investment in VR. It’s where they are making the most money so it’s naturally where they are going to look to expand.
With all of their resources, Sony could easily position themselves as the front-runner of the entire virtual reality gaming industry. So if you think that VR and gaming are a match made in heaven, then Sony might be the perfect company for your portfolio.
Option #3 (If you are a practical hardware kind of person)
Universal Display Corp. Maybe you aren’t interested in gambling on flashy name-brand products. Maybe instead you pride yourself on being a practical kind of guy who sees the value in useful hardware without all the bells and whistles. In that case, Universal Display Corp might be a company worth looking into.
While it may not have the name-recognition of companies like Facebook or Sony, Universal Display has been quietly working behind the scenes perfecting the precious OLED displays that run our modern devices. Due to the unique properties of OLED displays, they are perfect for virtual reality headsets and are expected to overtake traditional displays in the near future.
Universal Display has been gobbling up OLED patents for years and almost all of the major manufacturers use Universal Display’s technology in one way or another. If the VR market continues to grow, Universal Display’s products are gonna be absolutely integral to the industry. If you believe value comes from usefulness above all else, then Universal Display might just be for you.
Option #4 (If you like raw processing power)
Nvidia VR environments require processing power… a LOT of processing power. This is good news for graphics card companies like Nvidia. Nvidia has been the leading GPU (graphics processing unit) developer for years and isn’t losing ground anytime soon. Nvidia is so dominant in the GPU marketplace that many of the high-end VR headsets such as the Rift and Vive define their required specs in terms of Nvidia’s products.
They don’t even pretend that Nvidia’s competitors are relevant enough to be mentioned. This means that as more people move into the VR space, the first place they’re gonna turn for more processing power is Nvidia. If the thought of Moore’s law and exponential processor acceleration gets you all hot and bothered, then Nvidia might be the company for you.
Revolutionary technologies like virtual reality come along once in a lifetime. It’s worth taking a little bit of time and money to capitalize on such a huge opportunity. My hope is that this article can help a few of you take advantage of our unique position in history.
11dirk says
Great article, actually I never thought about that but Im sure Im gonna spend some time now to investigate in these companies and make the right investment.
victor says
I agree on adult vr being the best investment. When I have the right amount of money, I’ll buy stocks in this site. I’ll place my bets this is going phenomenal once the headsets become more popular all over the world
88BUBBLE says
I guess investing in core company would be a great idea like nvidia which can have presence in almost all VR headsets.
VRNerd says
Playing it in safe havens, i would bet on Universal Display Corp and Nvidia…. Not knowing how the market towards VR content may drift in the coming decade, one thing that makes me sure to invest here is the fact that all VR headset makers are surely going to need quality displays and higher processing power. Pick right, sit tight 😉
[deleted user] says
I think the best investment is in adult vr. How can I buy stock in vrporn.com? 🙂
DAILESBU says
I think the best option would be to go with either porn VR or gaming. These are the two fastest emerging niche in VR.
VRDOCTOR says
Yeah, and you’ll never run out of market