This year, VR stocks are becoming more popular. But not everyone can afford to invest in the industry leader, Meta (NASDAQ:META), which is expected to rise 44% in 2024 due to indicators of a recovering digital advertising market.
Meta capitalized on the resumption of advertising income after unsettling 2022 and 2023. After plunging to a low in 2022, META shares have recovered by doubling its earnings in Q4 of 23 and paying out its first dividend.
But one thing that appears to be lost on everyone is its metaverse business, which has lost around $50 billion. Here, Meta is going all in, and it can afford to lose.
To take advantage of a potentially $259 billion industry, investors would be better served by looking at three VR stocks that promise more than double-digit upside and each have their own distinct use case — whether it be via consortium blockchain solutions or accurate 3D copies.
Matterport (MTTR)
Matterport (NASDAQ:MTTR), a global leader in the digital twin and metaverse sectors, is underperforming in 2024 and has lost 28% of its market value.
But because of the Covid-19 pandemic, MTTR’s groundbreaking work with digital twins and accurate 3D replicas of real places could make a comeback possible.
It’s hard to value these two new categories. Fortune Business Insights expects the global digital twin market to grow 40% from $18 billion in 2024 to $259 billion in 2032. Polaris Market Research predicts the global metaverse market would reach $60 billion in 2022 and grow 41%.
Several Fortune 1000 companies trust the firm’s technology. The relationship with Meta Platforms to produce digital twins for AI research shows Matterport’s technology’s importance to metaverse infrastructure.
Matterport’s Winter 2024 Release included AI-powered Property Intelligence upgrades. This feature package automates property measurements, layouts, editing and reporting from a Matterport digital twin to modernize property analytics.
The 2024 release includes Minimap, Compass, Business Card and Quick Link Showcase Plugins to facilitate digital twin navigation and interaction.
Matterport’s schematic floor plans now include color, branding, languages and furniture on/off. New tools eliminate site visits and provide more detailed house blueprints to attract qualified purchasers.
In addition, Matterport has launched Project Genesis, a generative AI platform that employs digital twins to develop property designs to transform property management autonomously.
Analysts project a 119% upside based on a $4 target price.
WiMi Hologram Cloud (WIMI)
WiMi Hologram Cloud (NASDAQ:WIMI) has created a lightweight multi-sectoral data-sharing solution using consortium blockchains to enhance data sharing across many industries.
Its blockchain for AR and holographic eye-tracking focusing technology advances demonstrate its industry leadership in the global AR and VR market, which Statista expects to grow 10.77% (2024-2028) to $58.1 billion by 2028.
WiMi’s focus on vehicle HUDs, education and healthcare suggests market growth in its future. Also, WiMi’s strategic partnerships and expansions position it for market share and revenue growth.
The company has introduced a weighted PBFT algorithm to increase throughput and efficiency. It optimizes blockchain cross-chain consensus for throughput, latency and fault tolerance.
In addition, WiMi’s innovative eye-tracking technology uses spatial light modulators to adjust focus rapidly without mechanical components, improving user comfort and device stability.
The eye-tracking WiMi HoloAR Lens creates immersive and customized experiences in consumer and professional industries like healthcare and education.
Finally, last trading for 68 cents, the stock offers a massive upside with a $7 price target.
Himax Technologies (HIMX)
Himax Technologies (NASDAQ:HIMX) is down over 18% this year despite recording an earnings beat of 171% in Q4’23.
But its significance in the production of semiconductors and display drivers is undervalued, which makes it a dark horse among VR stocks.
Himax’s innovative AI processing technologies might draw in investors who are looking for low-cost tech startups.
Its semiconductor solutions process images on displays in consumer electronics. Additionally, thanks to its ultra-bright front-side color Sequence LCoS Microdisplay, Himax is a major player in the augmented reality eyewear market.
In the future, Himax’s ultralow-power contactless palm vein authentication technology, WiseEye Vein, will make its debut at ISC West 2024. a piece of their battery-operated endpoint WiseEye AI series.
Moreover, Himax will also debut agile 3D sensing and ultra-luminous Color Sequential Front-Lit LCoS microdisplay at CES 2024. These boost color and brightness for immersive AR.
In an effort to highlight developments in touch technology and display quality, Himax will also reveal its In-Cell TDDI for LCD notebooks and an On-Cell touch controller for premium AMOLED notebooks at CES 2024.
Incidentally, HIMX stock’s consensus target price is also $7, translating into a 37% upside.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.