Video game stocks are one sector that has gained serious momentum over the past decade. Our financial wizards (doubling as gaming aficionados) have pored through dozens of companies to help you discern where best to spend your hard-earned money.
I’ve been an avid gamer for over 30 years, with thousands of hours logged. I’ll never forget saving the $100 for my first Nintendo and the lessons that experience taught me about money.
You’ll still find me playing when the schedule permits, allowing me to stay in tune with the pulse of the industry. The rest of my time goes toward understanding investments and sharing my insights here at Wealth of Geeks.
While there are many great options, this list contains the ten gaming stocks we feel are most likely to take your portfolio to the next level.
Top Video Game Stocks to Invest In
These video games make the top of our list and are juggernauts in the industry. You will likely want to buy and hold these stocks, as they have a good shot at longevity.
Sony Group Corp (NYSE: SONY)
Sony has been a major player in electronics for the last 80 years. Among its most notable ventures is the PlayStation gaming console.
The original PlayStation was released in late 1995 in the United States and has garnered a huge following over the years. Now in its fifth iteration, the console has a long list of exclusive titles unavailable elsewhere.
While Sony’s gaming success is reason enough to give it a closer look, the company also has a hand in several other technologies like imaging, audio equipment, and home theater. Sony Pictures Entertainment is known for movies, TV shows, and games all on its own.
That product footprint is increasing with Sony unveiling its Vision-S electric vehicle. This diverse product offering is a significant factor in consistent quarterly revenue streams dancing around the $3 trillion mark.
With so much momentum, it’s promising that Sony’s share price will climb back into the triple digits soon.
Take-Two Interactive Software, Inc (NASDAQ: TTWO)
Take-Two Interactive is the brains behind the popular Grand Theft Auto, Borderlands, and Red Dead Redemption series under its Rockstar Games label. Grand Theft Auto V remains one of the top-grossing video games ever.
The company’s other major subsidiary is 2K games, responsible for its line of well-received sports titles such as NBA 2K. Outside its biggest brands, Take-Two produces a range of smaller titles to cater to fans.
In 2022, Take-Two acquired mobile gaming company Zynga for $12.7 billion. The purchase brings a new level of depth to Take-Two’s already solid offerings.
The announcement of Zynga’s acquisition caused TTWO shares to drop, but Take-Two’s stellar 2023 has already almost made up for it. We expect this upward trend to continue into 2024.
Recent news of a Grand Theft Auto VI game on the way has gamers and investors excited, considering the monumental success of its predecessor. With several additional releases on the way, Take-Two has an excellent plan for long-term growth.
Microsoft (NASDAQ: MSFT)
Microsoft’s humble beginnings in personal computers have blossomed into the tech giant it is today. Its Windows operating system is still the most widely used today. This bodes well for game manufacturers relying on Windows for most of their designs.
The company launched its Xbox gaming platform in November 2001 and hasn’t looked back. Its newest consoles, the Xbox Series X and Series S, hit North American shelves in 2020. To date, they’ve cleared 21 million units sold.
There’s been plenty of buzz around Microsoft’s intent to acquire game producer Activision Blizzard since early 2022. Microsoft finally closed the deal in October 2023, adding a huge repertoire of games and intellectual property to an already stacked deck.
Alongside its gaming empire and operating system, Microsoft is heavily involved in cloud computing and productivity software. We’ll soon see Microsoft more heavily involved in AI thanks to a recent partnership with OpenAI.
Financial numbers are up across the board throughout 2023, further cementing Microsoft as an excellent investment opportunity.
Electronic Arts (NASDAQ: EA)
Electronic Arts (EA) has been a leader in the video gaming industry since its inception in 1982. Players can find a myriad of games within the EA umbrella across high-quality brands such as The Sims, Madden NFL, Apex Legends, and Need for Speed.
The company claims more than 600 million active gamers access EA content each and every day. This large number is partly due to EA’s presence on PCs, mobiles, and every major console.
EA has its own distribution platform, Origin, to help players find and manage their gaming library. The Subscription platform EA Play allows users to try out titles and earn exclusive rewards.
2023 has been good to EA with the release of its newest Star Wars game Jedi Survivor. Revenue and earnings numbers continue to trend higher, especially after the successful launch of EA’s rebranded soccer game EA Sports FC 24.
It’s also one of the few pure-play video game stocks paying dividends.
NVIDIA Corp (NASDAQ: NVDA)
NVIDIA may not produce video games, but the PC world would be forever lost without it. The company produces the vast majority of graphical processing units (GPUs) personal computers need to run today’s demanding games.
Its massive GPU industry aside, NVIDIA is also involved in design, simulation, automotive, and other high-performance applications. Where NVIDIA shines right now, though, is its artificial intelligence (AI) sector.
No other microchip manufacturer holds a candle to what NVIDIA is doing in the AI space. It has a dedicated team of engineers working tirelessly to stay ahead of the growing demand for faster and more powerful hardware.
Revenue has more than doubled from last year during the second half of 2023, thanks to the company’s standing among AI. Share prices have astronomically followed suit.
We see NVDA stock as a tremendous buy-and-hold opportunity, with all signs pointing to a similar trajectory for 2024.
Best Value Video Games Stocks
Sometimes, video games don’t get the credit they deserve. Here are a few of the most undervalued gaming stocks right now.
Nintendo (OTC: NTDOY)
It’s hard to believe now that Nintendo started as a playing card company nearly 100 years ago in Japan. In 1980, the Nintendo we know and love began its foray into video games through coin-operated machines and the Nintendo Entertainment System.
Today, Nintendo remains at the forefront of gaming with its Nintendo Switch. The portable system still ranks third in all-time console sales.
Along the way, Nintendo has introduced us to unforgettable characters like Mario, Zelda, and Kirby. These franchises are just a fraction of the video game maker’s immense line of products.
Earlier this year, the company successfully delved into live-action cinema with its Super Mario Bros movie. With so many avenues to pursue, there’s little doubt Nintendo is here to stay for the long haul.
Despite Nintendo’s top-tier status, its shares are surprisingly low at just $12 on the over-the-counter market. We believe it’s already one of the most undervalued gaming stocks out there, but a strong foundation and rumblings of a new console on the horizon pave the way for even larger gains.
Roblox Corp (NYSE: RBLX)
Roblox is a massive virtual universe and online gaming platform. Players get to play, create, and share experiences with friends in an ever-changing landscape. Most of its content is entirely free to users.
The company opened its doors in 2004 with headquarters in California. A small group of developers and games at the onset quickly morphed into the more than 40 million experiences available today.
This vast number of experiences sees over 70 million daily users as the platform only grows and expands. Players can make real transactions by converting cash to the platform’s digital currency.
A free-to-play model with paid in-game opportunities has worked immensely well for Roblox. Fall financials showed an uptick in revenue and earnings per share over last year’s numbers.
RBLX stock is still in its infancy, with an initial public offering in 2021. We’re optimistic that shares still have some catching up to meet a valuation that best represents where the company is now.
NetEase Inc (NASDAQ: NTES)
NetEase is a Chinese technology company founded in 1997. It owns an intelligent learning company, cloud music, and a fashionable private-label lifestyle brand through its subsidiaries.
NetEase is most well-known for its internet and game services. Many of its offerings run on personal computers and mobile devices and were developed in-house.
The company opened its first headquarters on western shores in 2014, allowing these products to make their way to the United States. This move allowed NetEase to partner with overseas developers on various new gaming experiences.
Ever since, NetEase has been active in purchasing or investing in strategic gaming companies in America and Europe. Some of the most notable transactions include a stake in Bungie games and the creation of independent studio Jackalope Games out of Austin.
NetEase seems to be doing a lot more than investors currently give it credit for. Once word catches on about how prominent the game maker is, we anticipate shares rising to catch up.
Gaming Stocks to Watch
Keep an eye on these up-and-coming video game stocks. They piqued our interest and may be ones that could show promise for your portfolio too.
Inspired Entertainment Inc. (NASDAQ: INSE)
Inspired Entertainment is a rising star in the gaming space with a unique portfolio of technology, hardware, software, and services. The company primarily focuses on gambling and betting for money and leisure.
Unlike other entertainment stocks, Inspired loans its products to other organizations and websites for monetary gain. You can find its games in 35 countries across the globe.
At last count, Inspired’s casino and virtual sports software appear on more than 170 websites and 32,000 retail channels. In terms of hardware, Inspired already has more than 50,000 gaming cabinets in pubs, gaming halls, betting shops, and the like.
That’s quite impressive for a company that’s only been around since 2014. Climbing revenue numbers show that Inspired’s strategy is headed in the right direction.
At $8.94, adding a few shares of INSE stock to your portfolio won’t break the bank. Should Inspired stay on its current trajectory, who knows how high the stock price could go.
CD Projekt ADR (OTCMKTS: OTGLY)
CD Projekt is a Polish video game development studio established in 2002. It now has offices in Los Angeles and Vancouver, with a staff of over 1,000.
Although the company has just a handful of offerings, the team is responsible for several award-winning games. The Witcher series and Cyberpunk 2077 are the most distinguished, each earning a significant portion of the 1,253 awards the CD Projekt has received. The latter recently received top honors for best ongoing game at the 2023 Game Awards.
These accolades are largely due to CD Projekt’s dedication to bug-free releases, something relatively uncommon in today’s gaming market. Its transparency with releases and pricing structures has further won over gamers.
Shares have underperformed since the company went public in 2021, but we expect to see the same level of quality from CD Projekt games down the road. Should they retain their current timeline, a new Witcher trilogy and Cyberpunk Orion look promising.
Are Video Game Stocks a Good Investment?
We can trace the lineage of video games back over 50 years, even before the advent of the Atari console. Many companies on our list helped contribute to video gaming’s rise to its mainstream status today.
There are more than 2.5 billion video game users in the world right now, a number that’s expected only to grow year after year. It’s safe to say video games have firmly cemented themselves as part of our culture for the foreseeable future.
New technologies and faster hardware create a path for platforms and experiences beyond what we currently envision. Virtual reality and artificial intelligence are a few areas heralding a new era of games and gamers.
Video game stocks can be somewhat dependent on the state of the economy, as we witnessed last year. It didn’t take long for shares to bounce back and then some as the economy recovered.
Any recommendations on this list could serve you well, as gaming stocks remain a hot topic for investors. Don’t just take our word for it, though; be sure to do your own research before making any investment.