Augmented and virtual reality is the hottest market for technology growth and innovation, with the potential to have an influence on many sectors. The VR/AR market is still in its infancy, and many companies are entering it with different offerings.
One of the best ways to make money is to invest in a swiftly moving trend, and the VR/AR market is poised to outperform in the years ahead. According to digi-capital.com, AR/VR revenue is projected to reach $120 billion by 2020. Both the VR and AR markets are expected to grow in the long run, but virtual reality could be more successful in the short term.
In the most recent quarter, Himax Technologies reported earnings per share of 12 cents, beating the estimates by 2 two cents. The company’s top line came in at $218 million, a surge of 31.7% year over year. Himax is mainly known for manufacturing display drivers to power monitors that are used in mobiles, televisions, etc. But the company also has a robust presence in the AR/VR market.
The company has been successful in maintaining a comparatively robust margin this year mainly due to LCOS and WLO shipments as well as engineering fees from new VR/AR-based projects.
On the other hand, Himax also has several exclusive solutions and technologies for VR, AR and Internet of Things applications with thrilling long-term growth prospects. As a result, the company is in a great position to gain an advantage if AR/VR continues to gain traction.
In 2015, Microsoft revealed details regarding its AR device, HoloLens, which clearly suggests that Microsoft is competing for the lead in the AR/VR market.
The company reported that Windows' holographic platform and Microsoft's HoloLens are opening new opportunities on Windows. A few months ago, the company launched the development edition of HoloLens for all developers and business customers in the U.S. and Canada.
Most significantly, enterprise customers such as Japan Airlines andÂ Volvo (OSTO:VOLV A) are implementing Microsoft HoloLens, changing how they do things and building new mixed reality experiences for their consumers.
It is true that AR is still in its infancy, but the innovation and creativity that developers bring to the platform are clear. The company is planning to introduce its VR headset starting at $300.
In comparison, Microsoft’s VR headset will be much cheaper than $800 Vive and $600 Oculus Rift. Furthermore, the company also reported that its new VR headset will not need an expensive high-end $1,500 PC. Instead, it is designed to work with a low-end $500 PC.
Stockholders looking to profit from the growth of virtual and augmented reality should consider buying Himax Technologies and Microsoft.
Disclosure: No position in the stocks in this article.
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