Capitalizing on the Metaverse: A Look at Amazon, Apple, and Nvidia
The Metaverse, a virtual world that combines augmented reality and virtual reality, is becoming increasingly relevant and is expected to be worth an estimated $679 billion by 2030. The virtual world is expected to require a massive amount of cloud computing power, which means companies such as Amazon, Apple, and Nvidia are well positioned to benefit from its growth.
Amazon - Amazon Web Services (AWS) has the largest cloud computing market share, with 34% of the market and is a profitable business for Amazon with a revenue of $80 billion in 2022. AWS will be a critical component of the metaverse, and Amazon's position in cloud computing will grow as the metaverse expands.
Apple - Apple is rumored to launch a mixed-reality headset this year and has a long history of creating new markets and pairing hardware and software together to create successful products. Counterpoint Research estimates that AR/VR headset sales could reach 100 million in 2025, and Apple could be a significant winner in the metaverse app space with its proven ability to grow its services business through its App Store.
Nvidia - Nvidia's CEO, Jensen Huang, considers the metaverse to be the "next evolution of the internet," and the company's popular graphics processing units (GPUs) could play a big role in metaverse hardware and cloud computing. Nvidia's GPUs are already in use in high-powered data centers for AI processing and are expected to be essential for metaverse computing, as well. Nvidia's data center segment sales increased 30% in the most recent quarter, and the company believes there's plenty of growth ahead.
The metaverse is a new technology that's just starting to find its footing, but companies such as Amazon, Apple, and Nvidia are making significant moves into this space and could have an early advantage over their competitors. Investors looking to benefit from the potential growth of the metaverse should consider these companies, but it's essential to keep in mind that it will take a while for the metaverse to find its footing.
As always, it's important to conduct your own research and due diligence before making any investment decisions. The Motley Fool has provided a list of stocks they believe are better than Amazon, but it's always wise to weigh all your options and consider your personal investment goals and risk tolerance before making any investment decisions.