Spatial computing is a sector that will continue to grow at a fast pace as Virtual Reality and Augmented Reality become more commonplace. Now is the right time to learn more about spatial computing company stocks and gain exposure to this promising industry.
Table of Contents
- What Is Spatial Computing?
- What to Look for in the Global Spatial Computing Stock
- Outlook for the Spatial Computing Industry
- Top 21 Spatial Computing Stocks
- 1. Microsoft (MSFT)
- 2. Alphabet (GOOGL)
- 3. Facebook (FB)
- 4. Apple (AAPL)
- 5. Amazon (AMZN)
- 6. Tesla (TSLA)
- 7. Snap (SNAP)
- 8. Warby Parker (WRBY)
- 9. Qualcomm (QCOM)
- 10. Vuforia (PTC)
- 11. Ford (F)
- 12. IBM (IBM)
- 13. Deere & Company (DE)
- 14. Matterport (MTTR)
- 15. Nvidia (NVDA)
- 16. Sony (SONY)
- 17. Ambarella (AMBA)
- 18. Luminar Technologies (LAZR)
- 19. Medtronic (MDT)
- 20. Impinj (PI)
- 21. Syneos Health (SYNH)
What Is Spatial Computing?
Spatial computing refers to a branch of computing that transforms the way we interact with technology.
The term is almost 20 years old, but we’re seeing some spatial computing applications become a reality just now due to recent advancements in artificial intelligence and sensor technology.
To put it simply, spatial computing allows us to integrate digital activities into our environment.
An application that has received much attention lately is gaming with products like the Oculus Quest. This kind of virtual reality product that plunges the user into a virtual world could become a core element of social and leisure activities with Facebook working on its Metaverse project.
There are many other uses for spatial computing:
- Self-driving vehicles use spatial computing to navigate their environment. This technology is still in its early stages, but there is a vast potential.
- Autonomous machines are already present in some factories and could become more common. Tesla is a leader in this market with its Gigafactory robots that build car batteries.
- Order fulfillment and warehouse management could soon become entirely automated. While Amazon and other major retailers still rely on humans for this process, machines that use spatial computing could pick and fulfill orders.
- Many other uses for spatial computing include medical research, virtual design, remote training, real estate visits, virtual shopping, and more.
What to Look for in the Global Spatial Computing Stock
When investing in spatial computing stocks, it’s essential to consider the company’s financial health. Here are different factors you should assess whether you’re investing in spatial computing or another sector:
- Look at historical data for earnings and sales. Does the company have a strong history of launching successful products?
- A company’s debt-to-equity ratio can be an indicator of its financial health and whether the company is using viable strategies to achieve growth.
- What is the current market share of the company? How do the earnings compare to what competitors report? Does the company have a product that differentiates it? These questions will help you assess the potential for future growth.
- It’s also important to consider risks. There could be factors that limit growth in the future, such as a new competitor, issues with the supply chain, or even regulatory challenges.
- Things like leadership and ECG matter. A clear mission statement and some strong values can help a company succeed.
There are additional considerations that are specific to the spatial computing sector:
- Keep in mind that spatial computing isn’t a technology that exists in a vacuum. Many applications leverage other technologies such as artificial intelligence, machine learning, cloud computing, hardware, and more. Businesses with a solid background in these areas have an advantage.
- Patents are important. Spatial computing is still in its early stages, and some of the concepts that researchers are coming up with don’t have an application yet. However, some of these early concepts could become game-changers in the future, and the business that holds the patents will grow.
- Mergers and acquisitions are other vital considerations. Tech giants often buy startups and small businesses to acquire intellectual property. Investing in a small company could mean that you will receive cash for the stock or receive shares of the larger company that purchases it if a merger occurs in the future.
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Outlook for the Spatial Computing Industry
Is investing in spatial computing stocks profitable? Because some of the major tech companies are focusing on spatial computing, it’s possible to find spatial computing stocks that are profitable. However, some smaller players in this sector might not be profitable yet.
Things will change over the next few years since spatial computing has a strong outlook. Experts believe this industry will grow by 41% before 2026 and generate $196.21 billion in revenues.
Among other things, The Internet of Things, a subset of spatial computing, with an estimated CAGR of 25.4% a year between 2021 and 2028.
Top 21 Spatial Computing Stocks
The following products are some of the best spatial computing stocks. These companies will give you exposure to the different technologies that will play a vital role as spatial computing becomes more common.
However, keep in mind that it’s a relatively new sector and that things can change quickly. New players will likely emerge, and more major tech companies will probably start developing new projects related to spatial computing.
1. Microsoft (MSFT)
Microsoft is a pioneer in the spatial computing space with products like the HoloLens. This VR headset focuses on business and industrial applications. The hardhat-compatible version could one day change construction and engineering projects.
Microsoft is an excellent addition to your portfolio since it’s a blue-chip stock with a relatively low-risk profile. Plus, Microsoft is a good candidate for absorbing smaller spatial computing companies to grow its intellectual property portfolio.
Another advantage of buying shares of Microsoft is that this company will give you exposure to other tech industries, including software, gaming, or personal computers.
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2. Alphabet (GOOGL)
Alphabet is a tech giant with a solid background in artificial intelligence, machine learning, and algorithms. These technologies are building blocks for spatial computing.
Google is already working on spatial computing projects with Google Lens. It’s an exciting initiative since Google products have a high adoption rate, and Google Lens could become one of the most popular spatial computing platforms.
Google is also working on self-driving cars, and as more companies embrace spatial computing, the need for storage and computing power will increase. Google can address this demand thanks to its cloud computing service, another reason to invest in Alphabet. Google Maps also plays a role in spatial computing by allowing other companies to use their maps and build/collect spatial data for different projects.
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3. Facebook (FB)
Facebook is another tech giant that you should have in your portfolio. With 2.89 billion monthly active users, it’s a central platform for advertising online.
Facebook is already making waves in the global spatial computing market with the Oculus Quest and its rebranding centered on the Metaverse development. If this project is a success, Facebook could become one of the leading virtual reality platforms for entertainment, shopping, and more.
See Related: 8 Best Augmented Reality Stocks to Invest in Today
4. Apple (AAPL)
Apple recently released AirTags. These products are small beacons you can use to track your devices.
It might sound like another gadget, but the U1 chip that Apple developed for this device is revolutionary. This chip uses a protocol that allows devices to share spatial and directional data.
While GPS and Bluetooth technology already allows devices to communicate with each other, the U1 chip is a lot more precise and is a potential game-changer for the way IoT machines communicate.
Apple is also innovating with sensors. The latest generation of iPads has sensors with depth-sensing capabilities. These devices can track where people are, which is a key technology for smooth interactions with a virtual reality or augmented reality environment.
5. Amazon (AMZN)
Like Google, Amazon is a primary cloud computing service provider that will continue to grow as businesses need more computing power to support spatial computing systems. With over 200 cloud-based services to choose from, Amazon already has a solid portfolio and will continue to develop innovative solutions to boost the performance of its AWS service.
Amazon could become an essential player in the global spatial computing market with autonomous deliveries. The retailer has already launched drone deliveries via Prime Air. We could also see Amazon adopt IoT solutions to automate order fulfillment in its warehouses.
6. Tesla (TSLA)
- A majority of these patents are for battery technology and energy storage. This technology could play a role in powering autonomous robots since one of the advantages of spatial computing is the potential for remote applications.
- Tesla holds 132 patents related to autonomous vehicles and is already a leader when it comes to rolling out self-driving features for its vehicles.
- The automaker also has 58 patents for manufacturing automation, making Tesla one of the key players in the autonomous factory market. These factories could become the norm in the future.
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7. Snap (SNAP)
Snapchat isn’t a significant advertising platform like other social media networks, but the technology behind these filters and lenses is interesting. Snap has a groundbreaking Lens Studio that develops these filters by leveraging advanced augmented reality technology.
This studio has the potential to change the way mobile devices interact with their environment to deliver more immersive experiences.
See Related: 8 Best Augmented Reality Stocks to Invest in Today
8. Warby Parker (WRBY)
Warby Parker is an online eyewear retailer disrupting the traditional brick-and-mortar model. If that’s not reason enough to invest in this stock, Warby Parker is also offering a virtual try-on experience.
Shoppers can use their webcam or phone camera to see what frames will look like on them before choosing one. It’s the kind of technology that could transform online shopping.
9. Qualcomm (QCOM)
The company is positioning itself to become a leader in the spatial computing market with a new generation of extended reality headsets. These headsets have applications for e-Commerce, gaming, and more.
Qualcomm is also developing a set of developer tools to allow brands and content creators to offer innovative experiences in AR and VR.
10. Vuforia (PTC)
Vuforia offers an AR platform for businesses with an emphasis on industrial applications. What sets Vuforia apart is that this business provides comprehensive developer tools so that organizations can create their own products with this platform.
There are applications in manufacturing, sales, marketing, and more. An interesting approach to using Vuforia is to have technicians leverage the platform to perform repairs on cars and other complex products.
11. Ford (F)
The automaker recently invested $7 billion to develop autonomous vehicles. Ford also launched Ford X, an incubator that is using spatial computing to establish more inclusive vehicles thanks to a cross-reality platform. This type of platform could become a central tool for developing new vehicles in the future.
12. IBM (IBM)
IBM has always been a leader in data science. With spatial computing, businesses will face new challenges due to the multitude of data points that sensors and visual tools can collect.
IBM is already working on solutions for geospatial analytics. These solutions will allow users to create systems where they can work with visual data and other types of data points in real-time.
There are many applications, from working with satellite maps for weather forecasts to creating more accurate databases for insurance companies.
13. Deere & Company (DE)
This innovative approach to quality control could become a common way of inspecting parts and products.
14. Matterport (MTTR)
The patents behind this advanced capture technology make Matterport an attractive investment. There are countless applications for this technology, from real estate to event planning and more.
15. Nvidia (NVDA)
One of the challenges of spatial computing is the need for performing machines that can process vast amounts of data in real-time. Nvidia offers GPUs that can handle the graphics demands of extended reality applications and support real-time interactions from users. These GPUs will play a crucial part in building interfaces that allow users to interact with VR products.
16. Sony (SONY)
Sony is a major tech company and maker of consumer electronics. Investing in Sony stock will give you access to a wide range of markets since Sony has a presence in the gaming sector as well as in the digital camera market.
Sony also focuses on spatial computing with some new products like the Spatial Reality Display. This display uses a new type of screen that can track the user’s eye position and create a 3D image based on where the user is.
17. Ambarella (AMBA)
Ambarella is a small but promising company that develops innovative imaging solutions. You’ll find most of the products created by Ambarella in smart camera systems.
This company uses proprietary technology to create AI-powered systems that can extract visual information from images or videos in real-time. A characteristic of these systems is that they use chips with low power consumption, which is ideal for portable applications.
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18. Luminar Technologies (LAZR)
Luminar Technologies is another small company you should think about adding to your portfolio. This company develops software and sensors for autonomous vehicles.
Mercedes-Benz is using some of these sensors in its latest vehicles, and more automakers may adopt Luminar Technologies in the future.
19. Medtronic (MDT)
Spatial computing is creating some exciting opportunities in the world of healthcare. Medtronic is a medical company that recently partnered with Surgical Theater to develop a system that allows surgeons to use AR to improve visibility during complex cranial surgery procedures.
20. Impinj (PI)
Impinj is a promising IoT company. This company makes a wide range of chips that connect objects, buildings, people, and more. Impinj is also using groundbreaking strategies to collect data from these chips and extract actionable insights.
21. Syneos Health (SYNH)
Syneos Health is a medical company that is transforming the way businesses connect and collaborate in virtual environments. This business had developed technology and best practices for getting the most out of virtual meetings.
This company is also working on innovative ways of decentralizing patient outcomes and research, and some of these projects could incorporate spatial computing.
In conclusion, investing in spatial computing stocks is a wise investment with a potential to grow exponentially.
While spatial computing might sound new, investing in top VR stocks is also indirectly investing in spatial computing stocks. This is because companies listed in virtual reality stocks use spatial technology in their projects.
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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.
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