There has been a lot of good news on the exchanges lately, but things are not going well for the crypto scene right now. The thriller about the bankruptcy of the crypto exchange FTX even tears Bitcoin to the ground. Over the weekend, the cryptocurrency slipped again. After rumors of more irregularities, many investors withdrew their coins from crypto exchanges. Changpeng Zhao, CEO of crypto exchange Binance, meanwhile announced a recovery fund for the crypto sector. He wants to counter further damage from the collapse of the FTX.
As you can see, excitement is currently high and volatility is huge. But at the same time, many market parties also see opportunities in crypto. For example, the Metaverse needs Ethereum as fuel. And in doing so, it aims to revolutionize the way we work, shop, play and communicate. Numerous listed companies play an essential role in this. The most interesting of these Metaverse companies are those that are enabling the adoption of augmented and virtual reality in industries outside of games, such as advancements in hardware, software, and content.
These 3 technology stocks will give your portfolio Metaverse power
Let’s start with Nvidia (WKN: 918422). The Californians are true graphics card specialists. They have the expertise to provide developers and consumers with the necessary hardware for the Metaverse.
Since the Metaverse can settle on a broad base, the images need to be crisp and clear. At the same time, users expect to be able to interact with their virtual environment without delay or stutter. To achieve this, advances in hardware and algorithms are critical – Nvidia’s bread and butter business.
Nvidia is the major player when it comes to graphics processing and artificial intelligence solutions. Nvidia’s RTX line of graphics cards helped push the boundaries of what consumer PCs can do.
And the current valuation of Nvidia stock seems cheap. The analysts of the major banks set their price target at an average of 198 euros. From their point of view, a return of 21% on the current price is therefore possible.
Although the hardware comes from Nvidia, it performs unit (WKN: A2QCFX) the necessary software. Unity offers a 3D graphics and physics engine that currently powers more than 60% of all AR/VR content worldwide. That is enormous market power.
Unity’s scope is no longer just limited to games. With the Unity Industrial Collection, Unity also supplies innovative technologies for industry. If the Metaverse catches on, Unity’s tools could become the gold standard for creating 3D virtual worlds. The turnover can therefore continue to rise sharply in the future.
The metaverse needs exciting content
And that’s exactly where it comes from disney (WKN: 855686). Although the mouse company was founded nearly a century ago, it still dominates the mainstream media. And he has not failed to keep up with the times and introduce new forms of media and technology. At the heart of Disney’s insane success is its ability to capitalize on technology and intellectual property.
Disney owns numerous iconic brands. And what would the Metaverse be without Star Wars and Marvel? Disney is given ample opportunity to license its franchises. Not only that, but through its hugely successful animation studio Pixar, Disney has developed the Universal Scene Description (USD) platform, a powerful tool for creating animation in the Metaverse. Nvidia has already integrated it into its Omniverse development tool. So you can expect Disney to play a big role in the development of new Metaverse worlds. You can currently get Disney stock for less than double the sales. It hasn’t been this cheap since spring 2020.
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Henning Lindhoff owns stock in Disney. The Motley Fool owns shares of and recommends Nvidia and Walt Disney, and recommends Unity Software and the following options: long January 2024 $145 call on Walt Disney and short January 2024 $155 call on Walt Disney.