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Leading augmented reality stocks favoured by hedge funds

Leading augmented reality stocks

Augmented reality market seems to have strong growth prospects, considering technology industry’s massive focus on immersive reality, metaverse, Internet of Things and AI. Experts believe that that overall size of augmented reality market should grow from $29.84 billion in 2023 to $174.47 billion by 2028. Therefore, this industry should compound at ~42.36%. While AI continues to make headlines because of some media giants, some of the leading augmented reality stocks are launching new AR/VR products. These products focus on changing the way we all interact with physical world. For instance, Google launched Geospatial Creator, which is a set of tools and are powered by ARCore and Google Maps Platform. Tools are expected to enable developers to build and “scale AR immersive experiences accurately through using various technologies, including Photorealistic 3D Tiles, Rooftop anchors, etc. 

Executives of leading augmented reality companies believe that augmented reality should present a new way to engage and enhance abilities of retailers. Augmented reality should provide endless opportunities, especially when it gets combined with ever-evolving wireless technology. This should enable integration of mobile devices and home appliances to give an enhanced connected experience for end-users. Between 2023-2028, experts believe that ~800 million smartphones should get equipped with AR-supported hardware, processing units, graphics processing units (GPUs), and neural chips to power them.

Automobile industry continues to move in this direction as several automobile companies are utilising artificial intelligence technologies and augmented reality so that they can increase their market share. 

Given its wide acceptance, investors should consider investing in the following leading augmented reality stocks which are also favoured by hedge funds. 

1. Vuzix Corporation

The company is supplier of smart glasses and AR technologies and products for consumer and enterprise markets. Products of the company are personal display and wearable computing devices which provide a portable viewing experience, offering solutions for mobility, wearable displays, etc.

During 2Q23, the company saw record smart glasses sales, which supported sales growth of 56% year-over-year and 12% quarter-over-quarter. This was mainly because of sales channel growth with the help of additional salesforce resources and higher customer adoption of products in Japan and rest of Asia. 

In 1H23, its revenues grew by 61% year-over-year as a result of consecutive record quarterly sales of smart glasses. Vuzix Corporation made strong progress in terms of product development, technology advancement and new business engagements.

For 3 months ended June 30, 2023, year-over-year growth in total revenues was primarily due to increased product sales and specifically, significantly higher unit sales of the company’s M400 smart glasses. For 2H23, the company has a strong book of business of identified opportunities. These represent large deals and cornerstone customers on enterprise and OEM side of its business. It expects convert them over course of present calendar year.

2.Immersion Corporation

The company is focused on creation, design, development, and licensing of innovative haptic technologies. These allow people to utilise sense of touch more fully as they engage with products and experience entire digital world.

In 2Q23, the company saw total revenues of $7.0 million in compared to $8.0 million in 2Q22. Royalty and license revenues came in at $6.9 million against $7.9 million in 2Q22. During the quarter, the company used its balance sheet to make share repurchases and it has retired ~1.3% of the shares outstanding.

In May, the company has completed multi-year license agreement renewal with Marelli Corporation, which is a manufacturer and developer of automotive solutions. Non-GAAP net income of the company was $9.1 million, or $0.28 per diluted share in 2Q23 in comparison to non-GAAP net loss of $1.1 million, or $0.03 per diluted share in 2Q22. 

3.Unity Software Inc.

The company offers software platform for the creation and operation of interactive, real-time 3D content. Its platform can be used to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, and AR/VR devices.

The company delivered strong second quarter results, with revenue and adjusted EBITDA outpacing guidance. Revenues of Unity Software Inc. came in at $533 million as compared to guidance of $510 to $520 million, exhibiting 80% year-over-year growth and 11% year-over-year growth on a pro-forma basis. GAAP net loss came in at $193 million and adjusted EBITDA was $99 million, which exhibits improvement of $136 million year-over-year. This compares to the company’s adjusted EBITDA guidance range of between $50 million – $60 million. 

FCF for 2Q was $33 million, which was down because of one-time payments related to the restructuring.

For 3Q, the company expects revenues of between $540 million – $550 million, exhibiting a rise of 67% – 70% year-over-year and 7% – 9% on a pro-forma basis. 

4.Roblox Corporation

It operates online video game platform which allows young gamers to create, develop, and monetize games (or experiences) for several other players.

In 2Q23, the company’s revenue came in at $680.8 million, exhibiting a rise of 15% year-over-year and 17% year-over-year on constant currency basis. Bookings of the company were $780.7 million, which exhibits a rise of 22% year-over-year. Net cash provided by operating activities came at $28.4 million and average monthly unique payers were 13.5 million.

The company continues to support high rates of organic growth in DAUs, Hours, and Bookings. It has been experiencing growth among users of all age groups and throughout geographies. Focus of the company is on extending its product leadership to enable value for creators and brands. 


Leading augmented reality companies such as like Daqri, Meta, etc. have made AR headsets which focus on enterprise applications for their devices. 

Experts believe that North American AR market should see strong growth between 2023-2028 as some of the leading augmented reality stocks continue to make significant investments in market innovation. Apart from this, increased dominance of US in the global software market should also play a pivotal role. The US should be one of the most highly innovative AR markets, with high technology exposure and ease of availability of smart devices creating solid growth opportunities. 

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I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as,, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.


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