2 Monster Metaverse Stocks You Should Buy For the Long Haul

Numerous organizations and companies are working together to make metaverse the next iteration in the internet. This is a place where you can interact with others digitally and explore new worlds. Many believe it will be extremely profitable, with a market potential of nearly $800 billion by 2024 (the 2020 forecast was for $500 billion). 

Many technology companies are competing to be the king of virtual hills. Two of them are — Nvidia (NVDA -4.92%) Apple (AAPL -1.51%) — are likely to have a large influence on the metaverse marketplace, whatever its outcome. This is why it could be smart to play the long game with metaverse stocks.

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1. Nvidia: Powering metaverse

Take a moment to close your eyes and imagine the metaverse. Do you see hyper-realistic avatars that roam the digital landscape in ever-changing virtual worlds? There are endless virtual worlds you could explore. Nvidia has its own vision of the metaverse. However, when executives look up they see actual data centers that contain computing towers and hard drives equipped with Nvidia graphics cards.

The metaverse will require the same hardware as the internet to create a virtual environment. Nvidia’s graphics processor units (GPUs), are rapidly becoming the preferred choice. 

This is important Meta Platforms Meta announced that it will use 16,000 Nvidia GPUs for its Research SuperCluster supercomputer. This, Meta said, “paves the way” towards future technologies such as the metaverse. 

Nvidia’s future GPU sales won’t be limited to Meta. Nvidia’s success in the data center market will be boosted by the expansion of other companies into the metaverse.  

Nvidia will be able to tap into the $400 billion hardware market that the metaverse will bring about by 2024. Nvidia already supplies GPUs to early metaverse builders and it is likely that the company will continue to tap into this large hardware market as it grows. 

2. Apple: A massive metaverse play in hardware

Metaverse is about people being immersed in digital worlds around them. There are strong indications that Apple would like to help people make the leap from the real world to the virtual.

Apple has been developing a mixed-reality headset, which could include virtual reality (VR), augmented reality (AR), and could launch soon. According to reports, the company showed its board members a new headset a few months back. Bloomberg According to reports, Apple may start selling the device next year.

Apple should jump in the metaverse. Because the market for headsets has huge potential. Analysts estimate that Apple’s headset could be sold for up to $2,000, with lower-priced options available later. The device could also generate $18 billion in sales within five years of its launch.

Apple doesn’t yet have a headset available on the market. Apple CEO Tim Cook has made it clear that the company is interested in virtual reality. 

“I couldn’t feel more excited about the possibilities we’ve seen within this space. Cook said that you should “stay tuned” and see what else we have in the future. 

One metaverse competitor is also keeping an eye on Apple’s recent moves. Mark Zuckerberg, Meta CEO and founder of Meta, told his employees recently that Apple and his company are involved in a “very deep and philosophical competition” to build metaverse. Zuckerberg believes the stakes are high and that the winner will decide “what direction the web should go.” 

Apple’s chance in the metaverse is open to all, no matter if Zuck is correct. According to IDC data VR headset sales worldwide are expected to increase and reach 40 million units by 2026. That’s an increase of 14 million this year. Apple is a top-tier developer of high-end tech and the company’s new headset could be the most important in years.

The long game

It will take time to build the metaverse in the way many companies envision it. As such, if you are considering buying Nvidia or Apple stock as a metaverse investment, remember to think about several years instead of quarters. 

Tech stocks are currently experiencing greater market volatility. This makes it more crucial to adopt a “buy-and-hold” approach to these companies.