In the near-future of the information technology industry, major players such as Apple, Microsoft, Google, and Facebook will fiercely compete for dominance in two specific market segments: Advanced mobile data networks and the metaverse. Market analysts believe that these two industry trends will become new standards of online activity within a decade or so. The internet will gradually be transformed into a collection of virtual worlds, and the use of mobile technology will be predominant in terms of accessing these connected virtual reality spaces, which we will collectively refer to as the metaverse.
The metaverse and its mobile connectivity gateway are also beginning to emerge as financial trends in the portfolios of technology investors, particularly those who are always looking for the “next Tesla” in terms of stock investing. There are many topics worthy of discussion within these two trends, but one that cannot be ignored is that the Asian market will play a major role in the development of the metaverse, which appears to be the next generation of internet communications.
Asian Stocks Directly Related to Metaverse Development
As can be expected from any internet paradigm shift, development of the metaverse will unfold across software and hardware layers. A lot of work will need to be done in this regard, but analysts at investment banking firm JP Morgan have identified a few companies operating out of the Asian region currently providing material support to metaverse development on various fronts. If you are the kind of technology investor who believes getting in at the right time is always the best strategy, you will want to evaluate the following stocks.
Even though the metaverse will support activities ranging from digital video to online learning and from e-commerce to financial services, gaming will very likely be what gets people interested in virtual worlds. Interactive fun has always been a clever strategy to introduce new digital products; in the case of the metaverse, simple games can go a long way in terms of getting people used to VR interfaces. Tencent is a Chinese digital giant that has built an impressive catalog of mobile games and social networks; at the same time, Tencent executives have secured major stakes in game development studios such as Activision and Epic.
This Japanese investment banking firm has a solid track record of funding technology ventures that have become standards of internet communications. In late 2021, SoftBank announced that it had invested $150 million in the South Korean developer of Zepeto, the most advanced fashion e-commerce VR space. In the same month, the SoftBank executive board approved a $93 million investment in The Sandbox, a new virtual world featuring a blockchain economy that will welcome ventures such as cryptocurrency exchange platforms that will be the backbone of future economic investments.
Hon Hai Precision Industry
Better known as Foxconn, this Taiwanese company has managed to retain its privileged supply relationship with technology giant Apple. Foxconn is always busy manufacturing parts that go into mobile devices such as the Apple iPhone and the iPad. It is generally agreed that future versions of the iPhone and the iPad will be developed with the metaverse in mind, and Foxconn will be a strategic partner in this regard.