There has been a lot of good news in the stock markets recently, but the crypto scene is not doing well right now. Crypto exchange FTX bankruptcy thriller even tears Bitcoin to the ground. Over the weekend, the cryptocurrency slid again. After rumors of further irregularities, many investors pulled their coins from crypto exchanges. Changpeng Zhao, CEO of crypto exchange Binance, meanwhile announced a stimulus fund for the crypto sector. He wants to counter further damage caused by the collapse of the FTX.
As you can see, the excitement is high right now and the volatility is huge. But at the same time, many market participants also see opportunities in crypto. The Metaverse, for example, needs Ethereum as fuel. And in doing so, it aims to dramatically transform the way we work, shop, play and communicate. Many listed companies play an essential role. The most interesting of these Metaverse companies are those facilitating the adoption of augmented and virtual reality in industries outside of games – such as advancements in hardware, software, and content.
These 3 Tech Stocks Give Your Portfolio Metaverse Power
Let’s start with Nvidia (WKN: 918422). Californians are true graphics card specialists. They have the expertise to provide developers and consumers with the hardware needed for the Metaverse.
Because in order for the Metaverse to take hold on a broad base, the graphics must be crisp and clear. At the same time, users expect to be able to interact with their virtual environment without lag or stutter. To achieve this, advancements in hardware and algorithms are essential – Nvidia’s bread and butter.
Nvidia is the leading player when it comes to graphics processing and artificial intelligence solutions. Nvidia’s line of RTX graphics cards have helped push the boundaries of what mainstream PCs can do.
And the current valuation of Nvidia stock looks cheap. The analysts of the big banks set their target price at 198 euros on average. From their point of view, a return of 21% on the current price is therefore possible.
Although the hardware comes from Nvidia, it offers unity (WKN: A2QCFX) the necessary software. Unity provides a 3D graphics and physics engine that is currently responsible for over 60% of all AR/VR content worldwide. It’s a huge market power.
Unity’s reach is no longer limited to games. With the Unity Industrial Collection, Unity also offers innovative technologies for industry. If the Metaverse catches on, Unity’s tools could become the gold standard for creating 3D virtual worlds. Sales can therefore continue to increase strongly in the future.
The Metaverse Needs Exciting Content
And that’s exactly what comes from disney (WKN: 855686). Although the Mouse Society was founded nearly a century ago, it still dominates mainstream media. And it has not failed to keep pace and introduce new forms of media and technology. At the heart of Disney’s wild success is its ability to capitalize on technology and intellectual property.
Disney owns many iconic brands. And what would the Metaverse be without Star Wars and Marvel? Disney will have ample opportunity to license its franchises. Not only that, but through its hugely successful animation studio Pixar, Disney has developed the Universal Scene Description (USD) platform, a powerful tool for creating animation in the Metaverse. Nvidia has already integrated it into its Omniverse development tool. So you can expect Disney to play an important role in the development of new Metaverse worlds. You can currently get Disney stock for less than double the sales. It hasn’t been this cheap since spring 2020.
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Henning Lindhoff owns shares of Disney. The Motley Fool owns shares and recommends Nvidia and Walt Disney, and recommends Unity Software and the following options: $145 long call in January 2024 on Walt Disney and $155 short call in January 2024 on Walt Disney.