Analysts Think These Industries Could be the Biggest Beneficiaries of the Metaverse

The metaverse is no longer just about video games and digital land as analysts chime in on the biggest beneficiaries of the new virtual world.
Metaverse Explained

Quick take:

  • A report by CNBC cites several analysts giving their opinions on the beneficiaries of the metaverse.
  • Cryptocurrency, game developers, NFTs and blockchain companies are identified across the board.
  • Chipmakers and big tech companies could experience mixed fortunes. 

If you thought you needed to learn blockchain gaming, drop an NFT, or buy a piece of digital land in order to capitalise on the explosive growth of the metaverse, then you are wrong. Market experts think there could be more beneficiaries of the metaverse including some orthodox candidates.

A report published by CNBC on Wednesday draws opinions from different analysts that picked the biggest beneficiaries of the rapidly expanding virtual world. 

The article cites a recent report by Morningstar, which from a somewhat left-sided view, picked chipmakers as some of the unexpected beneficiaries. In the report, analysts from the investment management firm said fortunes could be a little mixed, with only advanced processor node chip manufacturers realising the most gains.

The report associates its thesis on the basis that the metaverse will require a lot of computing power.

“Since many of the tasks that take place in a ‘metaverse’ involve real-time processing of immense amount of data, this will require the chips involved to use advanced process nodes that are only available at TSMC, Samsung and Intel,” the analysts said.

On the other hand, smaller chipmakers are only likely to “benefit from the lower-value parts of the supply chain, such as power management and display drivers.”

Graphics processing unit manufacturer Nvidia, which recently revamped its metaverse building software, Omniverse was picked by CNBC’s Jim Cramer as a potential winner from the increasing adoption of metaverse gaming. The company’s shares rallied more than 125% last year amid the metaverse craze.

Several industries within the technology sector are also set to benefit from the metaverse, with cloud computing, artificial intelligence and video game graphics companies all in the equation. Private banking firm Lombard Odier said they are part of the building blocks of the new virtual universe.

And to create a fully-functional ecosystem, a currency will have to play a crucial role. Here is where non-fungible tokens (NFTs) and crypto come in as beneficiaries, creating “an ‘interesting’ ecosystem for digital content creation and monetization,” the bank said.

Lombard Odier said the metaverse is a limitless opportunity for human creativity. 

The virtual world gained traction within the market after Facebook changed its corporate name to Meta Platforms last October. Since then, several multinational corporations have jumped in with Disney patenting technology that will bring the metaverse to the real world.

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