In this article, we will look at the 11 Best Augmented Reality Stocks to Buy According to Hedge Funds.
According to a report by Mordor Intelligence, the global AR market is anticipated to grow at a notable compound annual growth rate (CAGR) of 42.36% between 2024 and 2029, reaching $248.38 billion by the end of the forecast period. It currently has a market size of $42.48 billion as of 2024. While the largest market for the industry is North America, the Asia Pacific region is anticipated to be the fastest growing.
The report also highlighted that a significant portion of this market is mobile AR, which leverages the globally spread use of smartphones, tablets, and other smart devices. Some estimates show that nearly 1.7 billion devices can support mobile AR as of 2024. Therefore, the massive and globally spread smartphone user base gives the AR industry a key competitive advantage.
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Trends in the Augmented Reality Space
The Immersive Entertainment—Global Strategic Business Report 2024 showed that the global market for Immersive Entertainment was $133.6 billion in 2024. It is expected to grow at a compound annual growth rate of 23.5% between 2024 and 2030, reaching $473.9 billion at the end of the forecast period. Thus, the global AR market is also likely to benefit from the expansion of the immersive entertainment industry.
The AR market is yet to reach the apex of its potential, and experts estimate that it will do so in about a decade. Many technological advancements in the industry support this growth, as tech giants have been scrambling to attain the AR and mixed reality dream for years. Investments worth billions of dollars have been directed to the cause. According to SkyQuest, the largest investment is being poured into training and industrial maintenance, with figures reaching as much as $4.1 billion in the field of AR. Apart from this, private firms, VCs, and even some governments are financing AR research institutes and teams.
The augmented reality industry has a primary user base comprising healthcare, aerospace and defense, consumer, and retail. In addition, the technology is being increasingly used in the automotive industry. Since autonomous vehicles are becoming a rising trend across the globe, the integration of AR in these vehicles is supporting the broader AR industry. AR technology helps improve the driver and the autonomous system’s comprehension of their environment by overlaying digital data in the real world. In addition to several other features, consumers can interact with virtual 3D models of vehicles with the help of AR technology in showrooms, allowing them to visualize several customizations.
Another key growth driver for the industry is the use of AR in hospitals and medical startups. The healthcare sector continuously uses immersive modalities to streamline its processes, as surgeons are increasingly leveraging AR to deal with the potential risks of healthcare procedures. AR is helping healthcare professionals reduce the rate of errors and the number of potentially unsafe surgeries. According to SkyQuest, the AR segment in the healthcare industry was expected to reach $1.2 billion by 2024.
With these positive future trends for the AR industry in view, let’s look at the 11 best augmented reality stocks to buy according to hedge funds.
A person wearing augmented reality glasses experiencing a virtual reality world.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 25 stocks operating in the AR space and chose the top 11 with the highest number of hedge fund holders as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of hedge fund sentiment. Our focus was on companies producing AR-related hardware, software, or technologies used to develop augmented reality products. However, we also included companies that offer services essential to the AR industry, like semiconductor chips.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
11 Best Augmented Reality Stocks to Buy According to Hedge Funds
11. PTC Inc. (NASDAQ:PTC)
Number of Hedge Fund Holders: 56
PTC Inc. (NASDAQ:PTC) is a global software company providing a portfolio of innovative digital solutions that transform the engineering, manufacturing, and servicing of physical products. The company is a prominent player in the augmented reality industry because of its Vuforia Enterprise AR platform, which offers various suite offerings and ranks it 11th on our list of the best augmented reality stocks to buy now. Vuforia provides easy, fast, and advanced AR content development solutions that help industrial enterprise customers meet their business goals and address workforce challenges.
On April 28, Barclays analyst Saket Kalia maintained a Buy rating on PTC Inc. (NASDAQ:PTC) and set a price target of $175.00. The company’s fiscal Q1 2025 results showed notable performance, with a constant currency ARR of $2.277 billion, reflecting an 11% year-over-year growth. Its free cash flow also underwent a 29% year-over-year increase, reaching $236 million. Analysts are thus bullish on the stock due to its ability to generate substantial cash flow and solid financial standing.
10. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Roblox Corporation’s (NYSE:RBLX) platform comprises Roblox Client, Roblox Studio, and Roblox Cloud. Roblox Studio is an app that allows users to explore digital 3D worlds, while Roblox Studio is a toolset used by creators and developers to publish, build, and operate 3D experiences and other content. Roblox Cloud encompasses the infrastructure and services powering human co-experience platforms.
The company ranks tenth on our list of the best AR stocks to invest in because of its several offerings in the sector. For instance, it collaborated with New York’s Metropolitan Museum of Art to launch Replica, a hybrid experience that allows visitors to scan and “capture” actual artworks from the museum’s collection, allowing their avatars in the game to wear the digital recreations. In addition, Roblox Corporation’s (NYSE:RBLX) users can also visit a virtual recreation of the museum in the game. This includes the Met’s popular façade on Fifth Avenue and the Great Hall’s sprawling staircase.
In addition, Roblox Corporation (NYSE:RBLX) collaborated with Walmart to sell physical goods directly to users inside the game in a unique AR experience. The company also launched the Walmart Discovered AR Experience, the first-ever immersive AR experience that lets customers visit Walmart Discovered in the real world.
Citi analyst Jason Bazinet maintained their bullish stance on Roblox Corporation (NYSE:RBLX), giving it a Buy rating on April 21. The analyst based his rating on the potential positive catalysts for the stock. He said the upcoming Q1 2025 earnings release could surpass market expectations and company guidance, supported by favorable third-party data trends. The analyst also highlighted the anticipated share price return of 25.5%, suggesting a notable upside potential for investors.
9. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 74
Autodesk Inc. (NASDAQ:ADSK) offers three-dimensional design, engineering, and entertainment technology solutions for engineering, architecture, construction, product design, media, manufacturing, and entertainment industries. Its CAD-to-AR for Autodesk Inventor integrates Unity Software’s game engine with the EasyAR™ augmented reality engine and is a technology demonstration of viewing Inventor 3D models in AR. Its main features enable the user to integrate it into the Inventor UI, alter model opacity in AR, capture screenshots of the AR scene, view Inventor 3D models in AR, track and choose a submodel, and undertake several other functionalities.
On April 25, Barclays analyst Saket Kalia maintained a Buy rating on Autodesk Inc. (NASDAQ:ADSK) and set a price target of $325.00. While Daniel Jester, an analyst from BMO Capital, maintained a Hold rating on the same day with an unchanged price target of $324.00, he opined that the company holds potential for improved profitability and higher EBIT margins.
According to the analyst, adding new members to the company’s board due to the recent agreement with Starboard is also a positive step for Autodesk Inc. (NASDAQ:ADSK), as it reduces distractions for management in an uncertain and challenging macroeconomic environment. This removes the uncertainty of a proxy vote, allowing the company to focus on its core business operations. The analyst viewed this stage as a transitional period in the company’s operations and acknowledged Autodesk Inc.’s (NASDAQ:ADSK) promising long-term prospects, expecting more significant catalysts to emerge later in the year.
8. QUALCOMM, Inc. (NASDAQ:QCOM)
Number of Hedge Fund Holders: 79
QUALCOMM Inc. (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry, including 3G, 4G, and 5G wireless connectivity and high-performance and low-power computing, including on-device AI. The company operates across various high-growth markets, including autonomous vehicles and smartphones. QUALCOMM’s Snapdragon augmented reality technology is the next generation of mobile computing. It merges the actual world with virtual objects to create a seamless reality, ranking the company eighth on our list of the best augmented reality stocks to invest in now.
On April 2, the company announced the acquisition of MovianAI Artificial Intelligence Application and Research JSC (MovianAI), which was formerly the generative AI division of VinAI Application and Research JSC, and a part of the Vingroup ecosystem. The acquisition is expected to bolster QUALCOMM Inc.’s (NASDAQ:QCOM) generative AI research and development capabilities, accelerating the development of advanced AI solutions for products like PCs, smartphones, software-defined vehicles, and more. On April 28, the company received a Buy rating and a $185.00 price target from J.P. Morgan analyst Samik Chatterjee. Analysts are bullish on the company’s financials, expecting EPS for fiscal Q2 2025 to come in at $2.82 with a revenue of $10.61 billion.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, visualization technologies, and graphics. The company plays a significant role in the AR industry by producing chips that power immersive experiences in various AR and VR devices. It powers Sony’s PlayStation 5 and Microsoft’s Series X|S game consoles. In addition, the company’s Radeon Pro Duo, with its LiquidVR SDK, is a powerful platform for all aspects of VR content creation. This ranges from education and medicine to journalism, entertainment, and cinema.
Wedbush’s Matt Bryson pointed to various positive factors for the stock, including that it is still gaining market share in the compute sector, both in servers and PCs. The analyst opined that while Advanced Micro Devices, Inc. (NASDAQ:AMD) is already outperforming in desktop computers, there is still potential for growth in the notebook segment in 2025. In addition, China’s reciprocal tariffs on semiconductors based on wafer origin could lend the company an additional competitive edge in the compute market.
Bryson pointed out that the demand for client GPUs appears to have surpassed expectations, and so customer inventory buildup in Q2 could offer a boost ahead of potential tariff impositions. In a report released on April 25, Ruben Roy from Stifel Nicolaus maintained a Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) with a price target of $132.00.
6. Adobe, Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 117
Adobe Inc. (NASDAQ:ADBE) is a US-based global technology company that offers services, products, and solutions to fuel digital experiences and imagine, manage, optimize, and engage with content across surfaces. The company’s digital media segment, centered around Adobe Document Cloud and Adobe Creative Cloud, also offers platforms like Adobe Firefly, Adobe Express, Photoshop, and other tools for creative professionals and other consumers.
Adobe Inc.’s (NASDAQ:ADBE) approach to AR is integrated into its Creative Cloud platform, which employs tools like Adobe Aero. Aero is an all-in-one authoring and viewing platform that allows users to create creative interactive AR experiences without needing advanced coding skills. This makes the platform user-friendly and highly accessible. The company is working to improve the platform for intuitive storytelling, ranking it sixth on our list of the best augmented reality stocks to buy now.
On April 25, Keith Weiss, an analyst from Morgan Stanley, maintained a Buy rating on Adobe Inc. (NASDAQ:ADBE) with an unchanged price target of $510.00. The analyst supported this rating with the company’s growth potential and current valuation, saying that its innovative capabilities and pricing power are being underappreciated by investors. The market is skeptical, as seen in Adobe Inc.’s (NASDAQ:ADBE) low valuation.
However, Weiss opined that this undervaluation represents an attractive opportunity for long-term growth. He pointed out that the market is currently pricing in a slowdown in the company’s long-term earnings growth, estimating it to be around 8% per annum compared to Wall Street expectations of a 12% compound annual growth rate. The analyst argued that Adobe Inc.’s (NASDAQ:ADBE) potential for margin expansion and expedited pace of product innovation could support higher-than-expected growth. As a result, the current share price does not highlight the potential for mid-teens EPS growth, making Adobe Inc. (NASDAQ:ADBE) an attractive investment at the present.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets personal computers, smartphones, tablets, wearables, accessories, and various related services and platforms. Apple Inc. (NASDAQ:AAPL) has one of the largest AR platforms in the world, with hundreds of millions of AR‑enabled devices and thousands of AR apps on the App Store. Its AR apps on iPad help students learn and visualize better. The company also significantly contributed to the AR industry by releasing the Apple Vision Pro mixed reality headset in February.
The Apple Vision Pro has more pixels than a 4K TV for each eye and seamlessly blends digital content with a user’s physical space. It is continuing to deliver unique spatial experiences, including immersive experiences like Submerged, the new short film.
Apple Inc. (NASDAQ:AAPL) holds a significant premium brand and market position, supported by highly in-demand hardware devices. It is also a financially sound company, generating a notable $36.3 billion in net income in fiscal Q1 2025, resulting in a sizable free cash flow. In a report released on April 28, Amit Daryanani from Evercore ISI maintained a Buy rating on Apple Inc. (NASDAQ:AAPL) and set a price target of $250.00.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 174
Alphabet Inc. (NASDAQ:GOOG) ranks fourth on our list of the best augmented reality stocks to buy according to hedge funds. Google employs AR in various ways. For instance, the Live View segment on Google Maps allows users to orient themselves to the area around them and view their surroundings’ directions on a live screen. In November, Google introduced a new augmented reality feature in Google Maps that allows users across the globe to interact with and explore the most iconic landmarks in Paris from the comfort of their homes.
Similarly, Google Lens allows users to search for what they see promptly. Users can identify plants and animals and even scan and translate text. They can also visualize several other elements, such as how makeup products look on their faces and furniture pieces in their houses.
BMO Capital analyst Brian Pitz reiterated their bullish stance on Alphabet Inc. (NASDAQ:GOOG), giving a Buy rating on April 25 due to its strategic positioning and strong growth potential. The company has undergone notable growth in its Search segment, with a 12% growth in FX Neutral Search, which exceeded both BMO and Street forecasts. The analyst attributed this growth to the rising adoption of AI Overviews, which have witnessed a 50% increase in users since October. He also said that the monetization of these AI-driven searches remains robust.
Pitz further said that Alphabet Inc.’s (NASDAQ:GOOG) Google Cloud Platform (GCP) is continually experiencing strong demand, with a 28% growth rate aligning with expectations. YouTube Shorts is also experiencing notable growth in engaged views, highlighting strong user engagement and capturing direct response advertising budgets. These factors support the analyst’s buy rating.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corp (NASDAQ:NVDA) is a full-stack computing infrastructure company that uses accelerated computing to help solve challenging computational problems. The company powers some of the leading AR and VR devices worldwide. For instance, the NVIDIA Omniverse delivers the first full-fidelity, fully ray-traced XR experiences in the world. Creators, engineers, and end-user designers can develop 3D virtual worlds at a human scale through the Omniverse XR application. Content can be seen in augmented reality, with users bringing virtual assets into the real world.
Similarly, the NVIDIA Cloud RX delivers VR and AR experiences over Wi-Fi and 5G networks, allowing users to stream AR content wirelessly. The company is also advancing technology to employ AR technology in vehicles, with its NVIDIA Drive AR processor collecting data and displaying it to drivers through AR. According to hedge funds, it is the third-best augmented reality stock to buy.
On April 28, Morgan Stanley analyst Joseph Moore raised his revenue and earnings estimates for 2026 for NVIDIA Corp (NASDAQ:NVDA), citing “explosive” demand for inference chips. The analyst maintained bullish sentiments for the stock, supporting his Buy rating with the company’s focus on AI-driven growth and the strong demand for its GPUs. Moore opined that the company is a “top pick” for investors seeking exposure to the AI revolution. Piper Sandler analyst Harsh Kumar also maintained a Buy rating on NVIDIA Corp (NASDAQ:NVDA) on April 29, setting a price target of $150.00.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables. The company has made significant progress toward AR and VR technologies. Reality Labs, Meta Inc.’s (NASDAQ:META) division dedicated to AR and VR innovations, is known for its substantial financial investments in these emerging consumer platforms.
For instance, its augmented reality prototype Orion is one of the most advanced pairs of AR glasses ever made. It integrates the appearance of a regular pair of glasses with the immersive capabilities of AR, presenting the real world as a canvas through large holographic displays. Users can place 3D and 2D experiences and content anywhere, and integrate contextual AI that can sense and understand the world around them to address their needs.
In a report released on April 29, Brent Thill from Jefferies maintained a Buy rating on Meta Inc. (NASDAQ:META), with a price target of $600.00. William Blair analyst Ralph Schackart also maintained their bullish stance on the company, giving a Buy rating on April 28. The analyst said that the company’s strategic initiatives and recent advancements in AI make it an attractive investment.
The company’s launch of a standalone AI app on iOS and Android platforms is a pivotal move, as it integrates AI offerings and allows its users to access their existing Meta accounts for enriched data access. The analyst opined that introducing an API for its LLM is anticipated to bring developers greater ease of use and flexibility. In addition, Meta Inc.’s (NASDAQ:META) adoption of a ‘mixture-of-experts’ approach in Llama 4 aims to reduce expenses and optimize computational efficiency, lending the company a competitive place in the AI landscape and supporting the buy rating.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) offers its customers a range of products and services. It also offers advanced tools for AR and VR developers through its Amazon Web Services (AWS) platform. Some of its offerings in the AR/VR space include View in Your Room, which allows users to visualize various pieces of furniture in their space before buying them, and Virtual Try-On, which enables users to see how clothing might look on them.
In a report released on April 28, Stephen Ju from UBS maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $253.00. The company has strong fundamentals and reported a 10% year-over-year revenue growth in 2024. Operating income reached $21.2 billion, undergoing a notable 61% growth. Its AWS segment, which includes its AR offerings, continued robust performance, reporting a 19% growth and an annualized revenue run rate of $115 billion.
Amazon.com, Inc. (NASDAQ:AMZN) is also investing heavily in AI. Its capital expenditures (capex) for 2025 are anticipated to be around $100 billion, most of which would go to AI. The company also said that falling AI inference expenses would fuel increased AI infrastructure spending.
Overall, AMZN ranks first among the best augmented reality stocks to buy according to hedge funds. While we acknowledge the potential of augmented reality stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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