Jump into the Metaverse with these 7 Metaverse stocks from Investing.com


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Investing.com – Metaverse stocks have become one of the hottest trending stocks of all time on Wall Street. Thanks to tremendous advances in virtual reality technology and computing power, the metaworld is slowly moving beyond sci-fi novels and movies and making its way into reality.

The Metaverse consists of online virtual worlds in which people live, work, and play interactive games with each other. It is therefore a virtual space shared by several people, created by integrating physical and virtual reality.

Meta Rolls the Metaverse Stone

Meta Platforms (NASDAQ:), formerly Facebook, launched the Metaverse in late October, when Meta CEO Mark Zuckerberg announced the company’s new name aimed at emphasizing the Metaverse. Zuckerberg said:

“The defining characteristic of the metaverse will be the sense of presence – like being right with another person or in another place… Our role in this journey is to lead the development of the underlying technologies, social platforms and creative tools accelerate to bring the metaverse of life.”

Many companies today are working on technological solutions to explore the limits of the Metaverse. Bloomberg Intelligence estimates the metaverse market to reach $800 billion by 2024.

For this reason, it seems logical to invest now in stocks that have something to do with this new type of virtual world. UBS analysts have identified many untold actions along the Metaverse value chain that they believe could benefit from Metaverse development.

The Metaverse could be the next growth engine for technology companies, as the major Swiss bank claims. According to analysts at the bank, the merging of the digital and physical worlds is the next chapter in the history of the Internet.

The technical infrastructure will likely form the basis of the Metaverse, according to UBS (SIX:). The commercialization of augmented reality and virtual reality devices — which UBS sees as a “gateway” to the Metaverse — is also a key factor in the success of the Metaverse, she explained.

Metas Oculus and Google (NASDAQ:) are already in the VR/AR device market, and Apple (NASDAQ:), Sony (T:) and Xiaomi (HK:) should also launch AR or VR glasses in the near future, experts conclude.

Promising Metaverse stocks for the 2022 trading year

One of the favorites among UBS’s Metaverse stocks is the California-based graphics and AI chipmaker NVIDIA (NASDAQ:). The Omniverse platform developed by Nvidia forms the basis of the metaverse and allows different parties to interact in real time through several cutting-edge software applications in a common virtual world. UBS Bank recommends buying the stock with a 12-month price target of $350. This translates to a yield of almost 17%.

While the analyst community is generally bullish on NVIDIA stocks, Investing.com’s analyst tool, InvestingPro, urges caution. On a 12-month perspective, the paper’s fair value is $225.83. This translates into a downside potential of 24.1%.

The bank also advises on the actions of Semiconductor manufacturing in Taiwan (NYSE:). The world’s largest foundry produces Nvidia’s high-performance chips and stands to benefit from growing demand for high-performance computers. UBS gives the stock a price target of 710 Taiwan dollars, which corresponds to an implied upside potential of 15%.

InvestingPro models predict less, but still a whopping 7% upside potential for TSMC shares. Here, the fair value over a period of twelve months is 656.89 Taiwan dollars.

Additionally, the Taiwan-based semiconductor company MediaTek (TW:) appears in the list of recommendations and should benefit from the growing demand for connectivity and network chips for VR/AR devices. The South Korean electronics giant Samsung (F:) (KS:) is one of UBS’s preferred suppliers for OLED, micro-OLED and memory components.

For MediaTek, UBS believes that a price target of 1,250 Taiwan dollars is reasonable, which corresponds to an upside potential of 5%. InvestingPro’s fair value estimates even certify that MediaTek’s share has 21.2% price potential at $1,442.49 over the next 12 months.

At Samsung, the UBS price target is 97,000 Korean won. This translates to an implied price potential of a whopping 24%.

Similarly, the Taiwanese camera lens manufacturer, genius Electronic (TW:), at the Illustrious Circle of UBS hardware sourcing favorites. According to the bank, the company is a major supplier of transparent lenses and camera lenses for Meta, HTC, Sony and possibly Apple.

According to InvestingPro, Genius Electronic stock is currently undervalued and could skyrocket 30.4% from current price levels to reach a fair value of T$683.45 over the next 12 months.

Let’s continue with the Apple provider quantum (TW:). The ODM specialist delivered around 60% of meta servers in 2021 and also counts Google and Microsoft (NASDAQ:) among its customers in the cloud segment. The bank announced a price target of 110 Taiwan dollars. The stock’s closing price of T$94.70 on December 30 translates to a price potential of 16%.

With a fair value of T$122.08, investment tool InvestingPro, developed by Investing.com, estimates Quanta Computer’s upside potential at 28.9% over the next twelve months.

The cloud infrastructure provider Wiwynn (TW:), which counts Meta, Microsoft and Amazon (NASDAQ:) among its clients, completes the UBS list. Here, the Swiss set a target price of T$1,200 for the stock, which closed at T$1,110 on December 30, giving it 8% upside potential.

According to InvestingPro’s quantitative models, Wiwynn stock even has a price potential of 22.4% over the next twelve months at a fair value of T$1,358.16.

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An opinion: InvestingPro is the fully customizable in-house analysis tool of the Investing.com financial platform. In addition to exclusive data on a large number of national and international stocks, you can easily calculate the fair value of your favorite stocks using numerous quantitative models.

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