Augmented Reality (AR) is a technology that superimposes computer-generated images onto the user’s view of the real world, including sensory elements such as sound. The potential applications of AR are vast, and one of its primary goals is to increase data collection. This data can be used by companies to improve their products and services by gaining a first-hand perspective of real-world usage through AR.
Investing in AR stocks could potentially create wealth for future generations. Meta Platforms (META), formerly known as Facebook, is one such stock. Despite facing challenges due to inflation and rebranding issues, Meta Platforms continues to develop AR headsets and other products for the futuristic sector. The company’s Reality Labs division, although not yet profitable, has shown promising growth, with revenues increasing by nearly 30% in Q1 of 2024.
Apple (AAPL) is another tech giant with AR aspirations. Although its AR headset, the Vision Pro, has not met initial sales expectations, Apple is expected to integrate AI into its AR headsets moving forward. The company’s iPhone sales are also expected to rebound as its AI is implemented in its phones.
Taiwan Semiconductor Manufacturing (TSM) is a contract manufacturer for many industries, including those applying to AI and AR. As AR hardware requires advanced chipsets to handle the computing demands, Taiwan Semiconductor Manufacturing is expected to benefit from the emergence of the AR opportunity. The company is currently soaring on the back of the AI boom and is a great long-term investment due to its role as a foundry to the world.
In conclusion, while AR stocks have yet to take off, they hold the potential to create wealth for future generations. Investors should consider Meta Platforms, Apple, and Taiwan Semiconductor Manufacturing as potential long-term investments in the AR sector.
