How NVDA, AAPL, and META Plan to Harness VR to Dominate the Future
May 13, 2025
Virtual reality (VR) isn’t just a gamer’s fantasy anymore. Its market hit $53 billion in 2024, and forecasts project a surge to $557 billion by 2034, driven by declining headset costs and expanding applications in enterprise, healthcare, and education.
As digital immersion reshapes industries, Nvidia (NVDA), Apple (AAPL), and Meta (META) are positioning themselves as VR’s vanguard, each taking a distinct approach. Drawing from their latest earnings calls, commentary, and market developments, let’s dissect their VR-focused investment cases, weighing their strengths and risks in this transformative sector going from niche to mainstream rather quickly.
Nvidia doesn’t produce VR headsets, but its GPUs are the beating heart of immersive experiences. The Blackwell architecture, which raked in $11 billion in its latest quarter, powers the high-fidelity rendering VR demands, from gaming to industrial simulations. In recent commentary, CEO Jensen Huang highlighted the Omniverse platform’s role in 3D collaboration, noting its adoption by firms like Siemens (SIE) for virtual factory planning, a boon for VR content creators.
The unique thing about Nvidia is that its strength lies in its indirect exposure. Supplying chips and software to VR developers sidesteps the consumer headset market’s volatility. Of course, this broad focus means VR is just one slice of its $115 billion data center revenue. But that’s good, seeing as Nvidia generates sizable revenues from its more stable divisions. It can afford to invest heavily into VR research like few else can, which could mean VR-sector dominance in the years (and tech wars) to come.
Currently, the overwhelming majority of analysts are bullish on NVDA stock. The stock features a Strong Buy consensus rating based on 30 Buy, four Hold, and zero Sell ratings assigned in the past three months. NVDA’s average price target of $168.60 implies a ~38% upside over the next twelve months.
Apple’s $3,500 “spatial computing” device, the Vision Pro, didn’t initially perform well. However, it seems that Apple believes it will find success by targeting professionals over casual users. In a recent earnings call, CEO Tim Cook emphasized Apple’s VR traction with enterprises, citing use cases like virtual surgical training and architectural design. For instance, at Stanford Medicine, surgeons have integrated Vision Pro for real-time data visualization during procedures, enhancing precision in complex surgeries.
While VR’s revenue contribution is small compared to the iPhone’s $51 billion quarterly haul, Apple’s ecosystem, which encourages integrating Vision with Mac and iPad workflows, could drive adoption. I appreciate that Apple is willing to return to the drawing board and pursue a leading position in the future consumer VR market. Its ~$100 billion in free annual cash flow provides a plentiful runway to refine its offerings in this growing market.
There are 29 analysts offering price targets on AAPL stock via TipRanks. Today, the stock has a Moderate Buy consensus rating based on 17 Buy, eight Hold, and four Sell ratings over the past three months. At $228.65, AAPL’s average price target implies a ~10% upside over the next twelve months.
Meta’s Quest headsets dominate consumer VR, but its Reality Labs division is a cash black hole. In its Q1 results, Meta revealed a $4.2 billion loss on $412 million in revenue, down 6% year-over-year, adding to $60 billion in losses since 2020. CEO Mark Zuckerberg called 2025 “pivotal,” touting AI features like real-time translation and tripling sales of Ray-Ban Meta glasses as steps toward a VR-infused future. However, we have no idea if and when Meta will be able to recoup its hefty investments in VR, let alone make great returns on them.
Fortunately, Meta holds a strong advantage, leading the market with its developer-friendly ecosystem and accounting for three-quarters of all headset shipments in 2024 through its Quest lineup. The core revenue and operating profit from its Family of Apps are so significant ($41.4 billion and $21.8 billion, respectively, in Q1) that Reality Labs’ heavy losses don’t discourage investors regarding the tech giant’s overall investment case.
Meta Platforms is currently covered by 44 analysts on Wall Street, with a deeply bullish consensus. META stock carries a Strong Buy consensus rating, based on 41 Buys, two Holds, and just one Sell rating over the past three months. META’s average price target of $693.51 implies almost 10% upside potential over the next twelve months.
VR breaks the mold as the next wave in entertainment, tearing down the limits of flat screens and passive watching. At its full potential, VR could blur the line between observer and participant. As tech giants like NVDA, AAPL, and META are ploughing billions into developing the tech beyond its traditional gaming roots. As investment arrives from major tech companies and consumer interest increases, VR is certainly going mainstream, although the timeframe is in question.
I would argue that Nvidia is the low-risk VR play powering the ecosystem without headset exposure, though its price reflects wider tech bets. Then you have Apple’s Vision Pro, a premium, patient bet, with transformative potential but minimal short-term impact. Lastly, Meta’s Quest leadership comes with steep losses but should offer the most significant upside if VR goes mainstream. With the market set to grow, each stock offers a distinct path and is worth considering if you want VR exposure.
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