11 Best Gaming Stocks To Buy in 2024
Gaming was formerly a niche investing opportunity, but now it’s a booming industry that is driving some of the biggest and most popular companies in the world. Whether you’re looking for companies offering old-time nostalgia through updated versions of decades-old games or those right at the cutting edge of technology and artificial intelligence, you’ll find plenty to choose from in the gaming industry as a whole. Some may prove to be great stocks to invest in for 2024 and beyond.
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11 Best Gaming Stocks To Buy Right Now in 2024
All of the numbers in the table below are based on data collected on May 21, 2024, from Nasdaq and Yahoo.
Gaming Stock | Share Value | One Year Target | Market Cap |
|---|---|---|---|
Electronic Arts (EA) | $128.85 | $149.70 | $34.448 billion |
Take-Two Interactive Software (TTWO) | $151.42 | $174.06 | $25.863 billion |
Nintendo (NTDOY) | $13.44 | N/A | $63.016 billion |
Sony Group Entertainment (SONY) | $82.00 | $115.78 | $100.446 billion |
Tencent (TCEHY) | $49.18 | $59.64 | $466.234 billion |
Light & Wonder (LNW) | $96.92 | $105.97 | $8.736 billion |
Nvidia Corp. (NVDA) | $953.86 | $1,052.63 | $2.346 trillion |
Microsoft Corp. (MSFT) | $429.04 | $478.01 | $3.189 trillion |
Alphabet Inc. (GOOGL) | $177.85 | $191.49 | $2.207 trillion |
Sea Ltd. (SE) | $73.26 | $77.63 | $42.076 billion |
Capcom (CCOEY) | $8.56 | N/A | $7.16 billion |
Methodology
The gaming stocks above were selected based on a combination of popularity, analyst projections and valuation. Before you invest in any of these stocks, make sure they match your financial objectives and risk tolerance.
1. Electronic Arts (EA)
Electronic Arts has long been a popular video game company, but lately it’s been generating increasing revenue from in-game purchases. Founded in 1982, it has had to evolve from a pioneering content generator to a digital distributor that also derives recurring subscription revenue. Some of its top games include Battlefield, The Sims, Apex Legends and licensed products with Madden NFL, FIFA and Star Wars. Analysts see potential gains of 17% over the next year.
2. Take-Two Interactive Software (TTWO)
This company produces games under the brands Zynga, Private Division, 2K and Rockstar Games. Its most popular games include Grand Theft Auto and NBA 2K24. The stock has a “strong buy” rating on it, with an average one-year price target of $174.06. That would represent a gain of around 17% over current levels.
3. Nintendo (NTDOY)
Japanese-based Nintendo Co. Ltd. manufactures video game platforms, card decks, home and handheld consoles and software. One of the best-known and best-established brands in gaming, Nintendo has come under fire lately due to lackluster sales and new-release delays, but long-term investors still believe in a turnaround. Only two analysts on Wall Street currently follow Nintendo, but they both have a “strong buy” rating on the company.
4. Sony Group Corporation (SONY)
Sony Group Corporation is a large Japanese conglomerate, selling many of the world’s most popular electronics products. However, it’s also the owner of Sony Interactive Entertainment, the gaming company that launched one of the most famous gaming platforms of all time in 1994, the PlayStation. Although the effects of SIE get diluted in a company as large as Sony Group, you’ll still own that business if you pick up shares of Sony. The 10 analysts following Sony have a consensus “strong buy” rating on the company.
5. Tencent (TCEHY)
This is the largest video game stock worldwide based on revenue. The brand is strong because it holds an impressive number of stocks in other video game companies. An increase in mobile game popularity in China is driving demand for Tencent branded games. In addition to mobile games like Honor of Kings, the company profits from messaging services like WeChat and QQ and its social networking service Qzone. The company is the 19th-largest in the entire world as of May 2024.
6. Light & Wonder (LNW)
In Oct. 2023, Light & Wonder completed its acquisition of SciPlay Corporation, which is famous for its casino-like online games including Jackpot Party and various online slot games. Light & Wonder combines the entertainment of online games such as those of SciPlay Corporation with real-world gaming machines, including video and electronic table games and slots, giving investors a more varied portfolio of holdings. Eight analysts following the company have a consensus “buy” rating on the stock.
7. Nvidia Corp. (NVDA)
Nvidia innovates the powerful graphics cards that are necessary for the best video game performance. Many esports leagues and streaming influencers boast Nvidia as their brand of choice for graphics cards.
The stock has been nothing short of a rocket ship, jumping 238.87% in 2023 and nearly another 100% YTD in 2024. Many analysts and investors see the company as a proxy for the AI world as a whole going forward, helping propel the company much further beyond simply gaming. Analysts have a consensus “strong buy” rating on the stock.
8. Microsoft Corp. (MSFT)
Microsoft is well-known for its professional software and cloud services. Microsoft is a household name. But many people don’t know that it’s also a major player in the gaming industry. In addition to its Xbox content, the company acquired industry heavyweight Activision Blizzard, maker of popular games including Call of Duty, Candy Crush and World of Warcraft, in 2023. Ongoing product launches and new licensing partnerships point toward revenue continuing on an upward trend.
9. Alphabet Inc. (GOOGL)
Alphabet is the umbrella company of Google and YouTube, and not only the most profitable gaming company on this list, but the third-most profitable in the world, after only Apple and Microsoft. While not a “pure-play” gaming company, thanks to the literal hundreds of companies under the corporate banner, Alphabet still boasts hundreds of thousands of unique streaming channels on YouTube Gaming Live. Analysts have a consensus “strong buy” on the company.
10. Sea Ltd. (SE)
Sea Ltd. is an umbrella company to three brands: Garena, Shopee and SeaMoney. One of these segments boasts an impressive presence in Latin America, Taiwan and Southeast Asia. Garena creates online games for mobile devices and personal computers.
In Q1 2024, Sea Ltd. announced a 22.8% increase in revenue and a 9.7% increase in total gross profit year-on-year. Although the company isn’t yet profitable, it shows long-term promise, and analysts rate it a strong buy.
11. Capcom (CCOEY)
Capcom is a bit under the radar, especially for a $7 billion company. Only one analyst follows the stock, with a “moderate buy” rating on it. The Japanese company recently released Resident Evil 4, Street Fighter 6 and Dragon’s Dogma 2, pointing to the continuing success of the company’s popular franchises. Capcom has beaten earnings estimates consistently over the past year.
Is It Good To Invest in Video Game Companies?
Video game companies offer explosive upside when they can produce games that are popular across the globe, and some are beginning to generate recurring revenue through subscription programs, which can reduce volatility between product releases. However, it can be hard to pick the companies that are going to be long-term winners or sustain their initial success. Overall, most gaming companies are in the “high-risk, high-reward” category.
How To Invest in the Video Game Industry
You can invest in the video game industry via “pure play” stocks that rely on a handful of specific gaming titles or you can choose companies that are more diversified but still have exposure to gaming. The first type of stock generally has higher risk and reward characteristics.
The easiest way to buy gaming stocks is to open a brokerage account from which to place your orders. With an online brokerage such as Fidelity, you can place your own orders or, for a fee, let the broker place orders for you. Alternatively, use an investment app like Robinhood or Webull to place your own orders. Here’s what to do once you’ve selected a broker or app.
Alternative Ways To Invest in Gaming Stocks
If you don’t have the time or ability to pick and choose individual gaming stocks, you can pick any of a number of popular gaming ETFs to invest in the sector. These types of investments will give you instant diversification within the sector and access to professional management of your portfolio. Some of the top mutual funds and ETFs investing in the gaming sector include the following:
VanEck Video Gaming and eSports ETF (ESPO)
Global X Video Games & Esports ETF (HERO)
Roundhill Sports Betting & iGaming ETF (BETZ)
Amplify Video Game Tech ETF (GAMR)
Takeaway
The video game sector is booming with growth anticipated for years to come as new technology challenges the industry to develop further. Investors should consider video game industry stocks in their overall investing strategy. These ten stocks are a great way to diversify portfolios and strengthen a long-term growth plan.
Daria Uhlig and Katy Hebebrand contributed to the reporting for this article.
Information is accurate as of May 21, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
This article originally appeared on GOBankingRates.com: 11 Best Gaming Stocks To Buy in 2024
