In this article, we will be taking a look at the 8 Most Promising Metaverse Stocks to Buy According to Hedge Funds.
The global metaverse market, driven by AI, AR, blockchain, and VR, is becoming a central component of Web 3.0, blending virtual and physical experiences to create lifelike digital environments.
It is reported that the global metaverse market was valued at $105.40 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 46.4% between 2025 and 2030, reaching $936.57 billion by 2030. North America is reportedly the world leader in VR and AR technologies, holding a 42.8% market share, driven by large expenditures and extensive adoption. The report also shows that software dominates the market by product with a 41.6% revenue share, while desktop platforms are the most often used platform. Scalable creation of interactive digital environments is being made possible by the rising demand for cloud infrastructure, real-time rendering, and immersive applications.
Organizations are creating digital replicas of physical locations, fueling demand for virtual land and customized spaces, particularly in education and business. Notable collaborations that fueled the metaverse growth include Meta and VictoryXR launching 130 digital twin university campuses in Europe, Unity partnering with Apple for spatial computing, Vagon enabling cloud-based 3D content streaming, and Capgemini expanding Unity’s digital twin development.
In order to facilitate AGI and metaverse services, Meta additionally purchased 350,000 NVIDIA H100 GPUs, and Ansys launched SimAI to speed up engineering processes. Cryptocurrencies and NFTs are further transforming virtual business by enabling secure transactions and verifying the ownership of digital assets. Together, these advancements are driving the creation of a networked, immersive metaverse environment that blends commerce, creativity, and technology.
With this being said, let’s now take a look at the most promising metaverse stocks.
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Our Methodology
For this article, we identified metaverse-related stocks from ETFs such as the iShares Future Metaverse Tech and Communications ETF and selected those with positive analyst upside. We then ranked these stocks in ascending order based on their total number of hedge fund holders as of Q3 2025, as tracked by the Insider Monkey database. Our list includes both pure-play metaverse companies and firms that are not exclusively focused on the metaverse but have meaningful exposure to or involvement in the space.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of 8 Most Promising Metaverse Stocks to Buy Now.
8. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 50
Price Target Upside: 69.13%
Snap Inc. (NYSE:SNAP) is one of the most promising stocks.
TheFly reported on February 9 that Arete Research upgraded SNAP to Buy from Neutral and set a price target of $7.30. In support of the update, the firm pointed to a shifting revenue mix and pointed out that SNAP is shifting its focus from its smaller-scale advertising business to higher-margin, recurring subscription revenue. Analysts predict that this change will improve the company’s financial standing over time. The company’s more positive outlook on the stock is supported by its perception that downside risk is minimal at present share levels.
More recently, it was reported on February 11 that Texas Attorney General Ken Paxton sued Snap Inc. (NYSE:SNAP) and claimed that the business had not warned users and parents enough about the app’s addictive features and hazardous content. The complaint alleges that, in spite of its kid-safe marketing and “12+” rating in app stores, Snapchat ended up exposing kids to mature content like profanity, sexual material, and posts about drugs.
The complaint also highlights features such as “Snapstreaks” and argues that daily-use incentives incite compulsive behavior among teens. Paxton accused the corporation of deceiving customers and stated that parents should be made aware of the dangers posed by the apps their kids use. The action comes after the Texas Attorney General filed similar allegations against Roblox (NYSE: RBLX) and TikTok, two other significant social media companies.
Snap Inc. (NYSE:SNAP) is an American tech company best known for Snapchat that is shaping the augmented reality (AR) metaverse by enabling digital overlays on the real world. It leads in AR lenses and tools, supports millions of creators, and is developing wearable AR “Specs” glasses to blend digital experiences with physical spaces.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 63
Price Target Upside: 5.17%
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the most promising stocks on our list.
TheFly reported on February 10 that Morgan Stanley resumed coverage of QCOM with an Underweight rating and a $132 price target. The firm expressed concerns that the company’s earnings potential is already largely reflected at current levels. Additionally, analysts cautioned that a persistent memory constraint may make the second half of 2026 a difficult time for Android smartphones. The paper predicts that a limited memory supply will put pressure on cellphone volumes, first hitting lower-end models before spreading throughout the year.
Separately, QUALCOMM Incorporated (NASDAQ:QCOM) declared on February 18 that it would use its Strategic AI Venture Fund to invest up to $150 million in Indian firms through its venture arm, Qualcomm Ventures. The program will focus on deep technology and AI companies, particularly those in the automotive, robotics, edge computing, IoT, and mobile industries.
With the help of on-device processing, the fund seeks to assist entrepreneurs in creating AI and edge-AI solutions for linked platforms, industrial systems, and gadgets. QCOM plans to work closely with founders on product development, commercialization tactics, and international alliances in addition to providing funding.
QUALCOMM Incorporated (NASDAQ:QCOM) is a U.S. semiconductor leader powering the metaverse with advanced 5G, AI, XR, and mobile computing technologies that enable immersive experiences, real-time connectivity, and interactive spatial computing across AR/VR devices and network-centric applications.
6. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 63
Price Target Upside: 27.79%
TheFly reported on February 13 that DZ Bank upgraded shares on Cloudflare, Inc. (NYSE:NET) and turned more bullish.
Separately, in recent news, NET announced a strategic collaboration with Mastercard Incorporated on February 17. This deal is to strengthen cybersecurity protections for small businesses, critical infrastructure operators, and government organizations. The partnership will combine Mastercard’s Recorded Future and RiskRecon attack surface monitoring capabilities with NET’s Application Security portfolio to deliver a unified solution for identifying and addressing cyber risks.
The combined service is intended to assist enterprises in identifying unknown assets that are accessible via the internet, evaluating vulnerabilities, and promptly putting security measures like web application firewalls and encryption into place. Users will also gain access to constantly updated cyber risk assessments and prioritized threat analytics via Cloudflare, Inc. (NYSE:NET)’s dashboard.
The initiative aims to enable companies to develop while maintaining stronger defenses against increasingly sophisticated cyberthreats by filling the visibility gaps created by expanding digital ecosystems.
Cloudflare, Inc. (NYSE:NET) is a U.S. internet infrastructure and security company enabling the metaverse with fast, reliable, and secure edge-network services, DDoS protection, and real-time connectivity that support immersive applications, distributed worlds, and seamless digital experiences across devices.
5. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 75
Price Target Upside: 45.46%
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the most promising stocks.
TheFly reported on February 10 that Raymond James raised its rating on TTWO to Strong Buy from Outperform and maintained its $285 price target. The upgrade comes after the decline in the stock’s price, which is driven by concerns surrounding the launch of Google’s Project Genie and the potential impact of AI-driven content creation tools on established game publishers. The firm believes the recent pullback is excessive and sees the current price level as offering a more favorable risk-reward profile, particularly in light of the company’s solid fiscal third-quarter performance.
Additionally, it was reported on February 18 that approximately 11 million Take-Two Interactive Software, Inc. (NASDAQ:TTWO) shares, valued at around $3 billion, were transferred from Saudi Arabia’s Public Investment Fund to Savvy Games Group. Although the transaction shifts the holdings to a different entity, it does not materially change ownership, as Savvy Games Group is fully owned by the PIF. In effect, the shares remain under Saudi control.
The primary purpose of the move appears to be strengthening Savvy Games Group’s role within the international gaming sector by placing these assets directly under its structure. This step aligns with Saudi Arabia’s broader strategy to reinforce its presence and influence in the global video game industry through a more focused gaming subsidiary.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading video game publisher behind immersive franchises like Grand Theft Auto and NBA 2K. It builds expansive virtual worlds with social interaction, digital economies, and user engagement and positions it as a key player in evolving interactive online ecosystems.
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 107
Price Target Upside: 28.03%
The Walt Disney Company (NYSE:DIS) is one of the most promising stocks.
TheFly reported on February 3 that Rosenblatt analyst Barton Crockett reduced his price target on DIS to $130 from $139 and maintained a Buy rating. Even though the company’s fiscal first-quarter earnings were above market expectations, the analyst noted that the management’s tone and speech lacked passion. DIS reaffirmed its forecast of double-digit earnings-per-share growth for the entire year, but said that growth is expected to slow in all sectors in the second quarter. The company stated that performance will recover in the second half of the fiscal year, which indicates a back-end loaded growth trajectory, despite the short-term slowdown.
On February 13, The Walt Disney Company (NYSE:DIS) issued a cease-and-desist letter to ByteDance, alleging that the company used its intellectual property without proper authorization or compensation to train its AI video generation model, Seedance 2.0. According to reports, DIS claims the tool was developed using copyrighted material belonging to the studio. The action represents one of the strongest steps taken so far by a major U.S. media company in response to concerns over how generative AI systems are trained.
Subsequently, on February 17, ByteDance stated that it would limit certain features of the Seedance platform following DIS’s allegations. The company acknowledged the concerns and said it respects intellectual property rights, and also added that it is working to enhance safeguards to reduce the risk of unauthorized use of protected content and likenesses.
The Walt Disney Company (NYSE:DIS) is a global entertainment giant leveraging its iconic franchises to create immersive digital experiences. From a metaverse perspective, it expands storytelling into virtual worlds, interactive platforms, and connected fan ecosystems across gaming, streaming, and theme parks.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 186
Price Target Upside: 27.14%
Alphabet Inc. (NASDAQ:GOOG) is one of the most promising stocks.
On February 5, UBS increased its price target on Alphabet Inc. (NASDAQ:GOOG) to $348 from $345 while maintaining a Neutral rating on the stock. The firm pointed out that a higher-than-expected return on invested capital is a result of Google’s capital expenditures connected to generative AI. Over the 2026–2027 timeframe, these expenditures are expected to generate between $19 billion and $23 billion in cloud income and an additional $5 billion to $6 billion in advertising revenue.
Nevertheless, UBS also pointed out that increased capital expenditure is hurting overall profitability, with the anticipated gain in earnings per share in 2027 being only about 1%. The company feels that a neutral posture is still warranted because the shares are trading close to peak valuation multiples.
Additionally, it was reported on February 18 that Alphabet Inc. (NASDAQ:GOOG) announced a $15 billion plan to boost AI development in India, focusing on expanding digital infrastructure and connectivity. The project includes a new subsea gateway in Visakhapatnam and three additional routes linking India to Singapore, South Africa, and Australia, enhancing network redundancy and reliability.
GOOG is also partnering with India’s Karmayogi Bharat mission via the iGOT Karmayogi platform to digitize legacy training and expand AI-enabled learning for over 20 million public servants across 800 districts in more than 18 languages, strengthening public sector capabilities nationwide.
Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, focusing on search, AI, cloud, and emerging technologies. From a metaverse perspective, Alphabet invests in AR/VR, AI, and immersive platforms, enabling scalable virtual worlds, interactive experiences, and next-generation digital ecosystems that connect users globally.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
Price Target Upside: 35.16%
NVIDIA Corporation (NASDAQ:NVDA) is one of the most promising stocks.
TheFly reported on February 11 that UBS raised its price target on NVIDIA Corporation (NASDAQ:NVDA) from $235 to $245 and reiterated a Buy rating on the shares.
Separately, on February 17, Meta Platforms announced a major expansion of its partnership with Nvidia, deploying millions of Nvidia chips, which also includes new standalone Grace CPUs and next-generation Vera Rubin systems, across its AI data centers. The deal between NVDA and META also covers networking technology to support AI features across Meta’s platforms, such as WhatsApp. This marks the first large-scale use of standalone Grace CPUs in data centers, moving beyond the traditional model of pairing CPUs with GPUs, and highlights Meta’s broader technology strategy.
The partnership builds on a decade of collaboration between the two companies and aligns with Meta’s 2026 AI investment plans, which could reach up to $135 billion. Financial terms of the agreement were not disclosed, but the scale of the deployment suggests it represents a significant portion of Meta’s capital expenditure for the year.
NVIDIA Corporation (NASDAQ:NVDA) is a leading designer of GPUs and AI computing systems. From a metaverse perspective, NVDA powers high-performance graphics, real-time rendering, and AI-driven virtual worlds, enabling immersive 3D environments, realistic simulations, and interactive experiences that form the backbone of next-generation metaverse platforms.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Price Target Upside: 51.19%
Microsoft Corporation (NASDAQ:MSFT) is one of the most promising stocks.
TheFly reported on February 4 that Stifel downgraded MSFT from Buy to Hold and lowered its price target to $392 from $540. The analyst cited ongoing Azure supply challenges, combined with strong performance from Google Cloud and Anthropic, suggesting that near-term growth in Azure is unlikely. Additionally, fiscal year 2027 is expected to see lower in-period revenue recognition compared with FY26, which benefited from multiple product cycles. Stifel’s projections for 2027 EPS stand at $18.70, significantly below consensus estimates, indicating that the stock may face limited upside until cloud growth improves or operational headwinds ease.
On February 18, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) is on track to invest $50 billion by the end of the decade to expand artificial intelligence infrastructure and access throughout the Global South. It focuses on emerging and lower-income countries in the southern hemisphere. The aim of this effort is to bring artificial intelligence (AI) technology to regions that have historically had limited access to state-of-the-art computer resources. MSFT intends to promote increased engagement in AI research and applications by concentrating on these markets, which will help close the global access gap to technology.
Microsoft Corporation (NASDAQ:MSFT) is a global technology leader advancing the metaverse through cloud computing (Azure), mixed-reality tools, AI, and enterprise collaboration platforms. Its ecosystem supports immersive gaming, digital twins, and industrial metaverse applications.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
