The metaverse has already arrived and is doing some exciting things for a few tech-savvy consumers and many businesses. With the stock market in turmoil and new opportunities for stock purchases, this next generation of the internet is worth investing in right now.
Nvidia(NASDAQ:NVDA), Meta Platforms (NASDAQ:META), and Qualcomm (NASDAQ:QCOM) are three top “metaverse” stocks to watch in October. This is why.
1. Nvidia Stock: Nvidia Is Not the Only Firm Investing Heavily in the Metaverse.
Meta isn’t the only startup banking on 3D immersion. While it hasn’t changed its name, Nvidia has named its new flagship software platform Omniverse, implying that it believes there will be many “metaverses” to enable and support.
Of course, not all of Nvidia’s metaverse products are currently firing on all cylinders. Last quarter, video game sales were down 33% year on year. However, sales of data centers (where much of the metaverse will be built and deployed) increased by 61%. Automotive (which is increasingly becoming an autonomous vehicle segment) increased by 45% and is on track to become a $1 billion-a-year business for Nvidia.
Nvidia stock (NASDAQ:NVDA) is trading at a 65% discount to all-time highs, indicating extreme pessimism as the company deals with a slowdown in consumer spending, an oversupply of gaming chips, and a new round of the US-China trade war. However, if you’re looking for a great ultra-long-term stock to invest in, Nvidia is a great option.
2. Meta Stock: Despite Having Many Positive Attributes, It Is Unloved and Forgotten.
I understand why so many investors have passed on Meta (Facebook, Instagram, and WhatsApp) this year. For years, a confluence of bad factors has been slowly growing and brought to bear on the firm. The reason was Apple’s recent modifications to its operating systems regarding application tracking openness, which diminishes the value of digital advertisements for Meta and other software developers since it is much more difficult to target ads toward particular users.
With billions of users engaging via a Meta app each month, the company’s metaverse goals aren’t that far-fetched. People like Meta goods, and making them more immersive (through the metaverse) will only improve their value over time. The “Reality Labs” sector (home of the Meta Quest virtual reality headset and app ecosystem) is now a drag on the company’s bottom line. However, Reality Labs’ $1.15 billion in revenue in the first half of 2022 (a 37% year-over-year growth) is outstanding.
3. Qualcomm Stock: Mobile Processors Are Critical to the Metaverse
Qualcomm CEO Cristiano Amon said last November at an investor presentation that the Oculus Quest 2 virtual reality headset (now the Meta Quest 2) had already sold 10 million units. This statistic is based on chip shipments from Qualcomm, which power Meta’s VR gear. We don’t know how many Quest 2s were sold a year later, although some estimates put the figure at over 15 million. Not bad for a first attempt at 3D immersive gaming and social interactions. And all signs are that a sequel to Quest 2 is on the way.
Qualcomm, like other tech equities, has taken a beating this year, falling 38% from its all-time high. Shares presently trade at 20 times enterprise value to free cash flow, a measure that has been slightly elevated due to Qualcomm’s significant investment in research and development. This is still a young startup, and it might be a good bet for the future of the metaverse. To me, this seems to be a good moment to purchase.
Featured Image- Megapixl @ Colour59
Author Okoro Chinedu 
