In this article, we will discuss the 5 best virtual reality stocks to buy. If you want to read our complete list of best virtual reality stocks, you can go to 11 Best Virtual Reality Stocks to Buy.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Funds: 110
NVIDIA Corporation (NASDAQ:NVDA) is one of the major technology companies that have been actively pursuing advancements in VR technology. The company first started on it with the launch of Geforce 10 series graphic cards in 2016. In September 2020, NVIDIA Corporation (NASDAQ:NVDA) announced the largest semiconductor acquisition in history, buying Arm Ltd for $40 billion.
Things look positive for NVIDIA Corporation (NASDAQ:NVDA) as it is set to announce its first-quarter results on May 25th. The company has been beating its revenue and EPS estimates for the past couple of years. For the fourth quarter of 2021, NVIDIA Corporation (NASDAQ:NVDA) beat its EPS estimates by $0.10, reporting per share earnings of $1.32. On top of that, the company exceeded its revenue estimates by $213.64 million after generating $7.64 billion.
On May 26, Susquehanna analyst Christopher Rolland lowered the price target of NVIDIA Corporation (NASDAQ:NVDA) from $280 to $260. However, the analyst kept a Positive rating on the company shares.
Here is what RiverPark Funds had to say about NVIDIA Corporation (NASDAQ:NVDA) in their first-quarter 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
