Virtual Reality is one of the fastest-growing sectors in the tech industry, with its user base jumping from just one million in 2014 to over 150 million in 2018, and with the imminent arrival of 5G and the next generation of games consoles, we’re about to see a whole lot more of VR. Here, we’ve looked in-depth at two small-cap Virtual Reality stocks that could be set for major growth in the coming months and years, with VR’s market value expected to hit nearly $50 billion USD by 2023.
What is VR?
Virtual Reality is a digitally created, 3D immersive experience designed to make an artificial reality, such as the ones we enjoy every time we switch on the TV, as realistic and believable as possible. It works by blocking all external factors from the user’s sensory environment in a manner that immerses the senses in the digital world so that it becomes the only present reality. The potential of VR technology is endless, as it can instantly transport the user to places that reality normally wouldn’t allow.
Virtual Reality is a wide sector with a variety of different products and applications—and that’s what makes it such an attractive market to get in on. There are so many different areas to choose from, such as hardware, software, gaming, desktop, or smartphone technology. In an emerging market such as this, small-cap stocks are key as they’re usually very focused on developing one particular aspect of the technology, meaning they’re a cradle for creativity.
So, let’s take a look at the virtual reality stocks catching our attention.
Spectra7 Microsystems (TSX:SEV) (OTC:SPVNF)
Spectra7 is an incredibly small tech company located in San Jose, with a market cap of just $6.2 million USD. Founded in 2012, the company specializes in making the electronic devices we use on a daily basis thinner, lighter, and higher performing. Spectra7’s product range includes ultra-thin 4K panels, Ultra HD displays, data centers, and head-mounted displays for both virtual reality and augmented reality.
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Spectra7’s new flagship headset, DreamWeVR, is a pioneering product in the VR industry. It utilizes four new chips, all developed with the company’s SpectraLinear technology, which allows VR and AR devices to drive resolutions of 4K Ultra HD and 5K with extremely low latency, a key feature of 5G technology. For such a small company, it’s a pretty innovative development in the world of VR and one that you can expect to see feature in the hardware of much bigger players in the market.
Spectra7 shares are currently trading for just $0.015.
YDX Innovation (TSXV:YDX) (OTCPK:YDRMF)
YDX Innovation is a Vancouver-based company that markets itself at the cutting edge of innovation and disruptive technology. The company has a diverse portfolio of projects, which services clients from Coca-Cola (NYSE:KO) to Qualcomm (NASDAQ:QCOM). One such project, YDreams Global, has created interactive games and displays that have been showcased everywhere from shopping malls and retail outlets to the 2014 World Cup in Brazil.
Perhaps the most impressive innovation this Virtual Reality stock has come up with is the Arkave virtual gaming arena. Basically, this is a gaming platform that brings the most immersive VR experience to location-based venues with a highly scalable business model. CEO Daniel Japiassu described Arkave arenas as “sprawling videogame centers. These centers are divided into subsections, with each dedicated to a different game in a unique virtual world. One such arena in Brazil spans 3,230-square-feet and can accommodate 14 different players at once.”
It’s a pretty impressive piece of technology that can be marketed to a whole host of clients and consumers and will be featured at the 2019 edition of the Formula 1 Heineken Gran Prix, happening in São Paulo, Brazil, from November 15 to 17. This Virtual Reality stock is currently trading at just $0.40 CAD.
The Takeaway
There are a virtually countless number of companies hoping to cash in on the VR space, and thanks to the almost endless applications of the technology, there’s plenty of more room for innovation. The two firms mentioned here look to be at the forefront of that wave of innovation. 5G technology is being rolled out around the world in 2020, and VR stocks look set to become some of the hottest property in tech investing as a result. So, what are you waiting for?
Featured Image: DepositPhotos © wayne0216
