Better VR Stock: AMD vs. Apple

Over the past few decades, dozens of devices have included virtual reality (VR). However, it has only recently become possible for businesses to fulfill the VR promises made 30 years ago thanks to technological advancements. As a result, more and more businesses are entering the market with high growth.

Grand View Research estimates that the virtual reality (VR) market will grow at a CAGR of 15% through 2030, reaching a value of approximately $22 billion in 2021. As the business creates, numerous VR organizations are likewise investigating expanded reality (AR), which, as indicated by Stupendous View Exploration, has a CAGR of 40.9% until no less than 2030.For reference, VR makes a totally virtual world for the client, while AR changes parts of this present reality with an overlay of virtual subtleties.

Tech goliaths Sony and Meta Stages have principally overwhelmed the VR business with their headsets, yet High level Miniature Gadgets (AMD 0.13%) and Apple (AAPL 1.56%) could assume huge parts in the market’s future. Thus, this present time is a fantastic opportunity to think about putting resources into one of these future heads of the business.

Is Apple or AMD the superior VR stock? We should investigate.

With its consumer lines of graphics processing units (GPUs) and processors, Advanced Micro Devices, a leading chip supplier, is best known for its role in PC components. Nevertheless, the company has steadily established itself as a market leader in semi-custom chips for a wide range of devices. For example, AMD only supplies the designs and handling power for Sony’s PlayStation 5 (PS5) and Microsoft’s Xbox Series X and S game control center with its framework on a chip (SoC).

AMD’s gaming segment saw a 21% increase in revenue to $6.8 billion in fiscal 2022 thanks primarily to the lucrative partnerships. To $953 million, operating income increased by 2%. Given that the PC market experienced steep declines, any growth during the difficult year is impressive.

Due to its chip business, AMD now plays a crucial role in virtual reality. The PlayStation VR 2 headset, which was made available by Sony in February and runs solely on AMD chips through the PS5, was released.

As the VR business grows, more organizations will probably go to AMD for its chips. The mobile chips in Meta’s current line of Quest VR products are less powerful than those in a desktop PC. Future emphasess of Journey headsets will probably switch over to the sort of SoCs that AMD produces before very long.

Apple has a knack for dominating new markets.

Over the years, a number of acquisitions and patents have almost confirmed Apple’s intention to enter virtual reality. However, the company may launch its first headset in 2023, according to a rise in reports over the past few months.

Bloomberg reported in January that the upcoming Apple device would feature eye/hand tracking and an iOS-like interface in addition to VR and augmented reality capabilities. In line with Apple’s pricing strategy for the Apple Watch, rumors have also suggested that the headset will likely start out at a hefty price of thousands of dollars and gradually become more affordable with subsequent releases.

Despite the fact that Apple does not currently have a strong VR position, the company’s stock is an appealing investment due to its previous success in entering new markets. As evidenced by its success in smartphones, tablets, Bluetooth headphones, and smartwatches, the tech giant has demonstrated a demonstrated aptitude for entering new markets and quickly establishing itself as market leaders. Before Apple’s versions were released, each of these technologies had a relatively low level of widespread adoption, which caused their use to skyrocket.

Consequently,

the company has a leading smartphone market share of 24.1%, a tablet market share of 49.2%, a headphones market share of 34.4%, and a smartwatch market share of 26%. Consumers’ loyalty to Apple’s powerful brand has contributed significantly to the adoption of virtual reality and augmented reality in the future.

Both Apple and AMD have a lot of potential in virtual reality due to their respective reputations for success in new markets and the rising demand for their chips. With Apple’s soon-to-be-launched headset likely to increase competition and demand for AMD’s chips over the long term, AMD’s chips give it a fairly solid position in the expanding industry. AMD’s more concrete position makes it the better virtual reality stock and an excellent way to invest in the expanding market, whereas Apple’s potential role in VR is still uncertain.