Metaverse is a hot topic in the technology sector. The metaverse refers to seamless, persistent, interactive, and immersive 3D virtual reality or mixed-reality experiences, which is the interaction of real-world and digital-world objects. The metaverse is expected to change the way people study, work, play, travel, and socialize by shifting many of these activities from a physical economy to a virtual economy.
Anything associated with the metaverse is being considered the next blockbuster opportunity. To make money in the stock market, investors need to separate fact from fiction. Only a few technologically sound and financially stable companies will be capturing a major share of the metaverse market.
The idea of building on this idea has led to the emergence of two blue chip companies that seem poised to make the most of this evolving opportunity.
The image is from the same source.
The metaverse involves the use of various advanced technologies such as augmented reality, virtual reality, and video streaming, which require parallel computations and superfast computations. This can be accomplished by using the leading high-throughput graphics processing unit chips.
For their ability to render ultra- realistic graphics, and for facilitating huge and complex workloads, the graphics processing units of Nvidia are preferred by data centers. The first data center processor from Nvidia is well-suited for artificial-intelligence-based and high-computing applications.
The Bluefield data processing unit is aimed at speeding up processing for software-defined networking, data storage, and artificial-intelligence applications. Next- generation hardware technologies are well-suited to support the metaverse.
The real-time software-development platform called Omniverse was developed by Nvidia. This technology platform will enable real-time collaboration among global 3D-design teams working on multiple software platforms.
The company introduced a synthetic-data-generation engine in November of 2021. The company has launched a new product called Omniverse Avatar, which uses artificial intelligence, computer vision, natural-language processing, and simulation technologies to create interactive digital characters. The creation of artificial intelligence assistants that can help process billions of customer service interactions is the immediate opportunity for the omniverseavatar.
Even without the metaverse opportunity, there's a lot to like in the company that accounts for 83% of the global market share. The company's gaming segment is benefiting from several strong tailwinds, including the ongoing video game graphics upgrade cycle and increasing demand for graphics cards in gaming.
The data center business of Nvidia is seeing strong demand for its graphics cards. In the third quarter, the company easily beat consensus estimates and INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals INRDeals
The evolution of the metaverse is one of the strong tailwinds that Nvidia has. I'm very bullish on this stock.
2. Microsoft.
Microsoft is working to strengthen its existing cloud and business productivity offerings with the metaverse for a range of enterprise-use cases. The company has created a mixed-reality platform called Microsoft Mesh and an Internet of Things platform called Azure Digital Twins.
Microsoft introduced the "Mesh for Microsoft Teams" solution, which allows Microsoft Team users to interact with digital avatars in an immersive mixed-reality environment for a range of activities. This work-collaboration targeted platform can see multiple applications in the coming years with the popularity of work-from- home and hybrid work arrangements.
It is easier for organizations to innovate, manufacture, and plan at a lower cost with the help of the digital twins tool.
Microsoft's future share prices can be propelled by more than the metaverse. The company's intelligent cloud and productivity and business-processes segments are the key revenue drivers. The second leading player in the global cloud infrastructure market is Microsoft's Azure. The company's revenue visibility has improved because of the shift to a subscription-based business model.
YCharts has MSFT operating margin data.
Microsoft has a robust business model. The company's revenues increased by 19.8% in the last year. Microsoft has higher profit margins than many of the big technology players. The company has $130.6 billion in cash and a much lower amount of debt.
Microsoft has a wide-moat, well-diversified, and highly profitable business, along with a healthy balance sheet. Microsoft is well-positioned for a solid growth trajectory in the coming years, if you include the metaverse opportunity.
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