Metaverse Recommendations from Credit Suisse: Check Out These 12!

Since Facebook became Meta last October, many investors have turned their attention to the metaverse and the potential profits to be made from it. However, the “crypto winter” in which cryptocurrencies are falling has raised some concerns. Similarly, last week, firm Meta announced that its metaverse business lost $10 billion in the fourth quarter of 2021, and the 25 percent drop in Meta shares did not give full confidence to investors. However, the Credit Suisse analyst thinks that the rise of this area will continue and it can increase 12 stocks with it. As Kriptokoin.com, we are giving the details…

Metaverse is coming to change the era

However, recent problems have not stopped companies and investors from pouring billions of dollars into the metaverse. For many, the age of the metaverse is coming. A team of Credit Suisse analysts led by Manish Nigam, Head of Global Industry Research, agrees. “The Metaverse should eventually bring profound changes to the entire technology, media and telecom industry,” Nigam wrote in a February 8 note.

On a broader level, Nigam and his team have divided the industries most affected by the rise of the metaverse into three main categories, with the first focusing on content creation companies. Other categories were hardware and semiconductor manufacturers, including the components, assembly and display sub-sectors. Credit Suisse analyst used the following statements:

For semiconductors, the metaverse is poised to benefit as the data economy generates/captures, stores, transmits and analyzes, and the improvement in power/performance unlocks greater data consumption and use cases. On the hardware side, the metaverse; mounting, display, camera/optics, PCB/substrate, MLCC, connectors and augmented reality/virtual reality opportunities.

There are some obstacles to the Metaverse: What are they?

Nigam wrote that the biggest challenge facing metaverse adoption right now is finding a balance between improving the performance of computing power while reducing cost. For example, he estimated that a 1,000x improvement in computing power would be required to support a fully immersive metaverse setting in Fortnite. But with high-end gaming PCs already easily over $10,000 in some cases, companies must find a way to cut costs while speeding up the user experience.

At the heart of this problem is the semiconductor chips found in thousands of consumer products, including computers and game consoles. Nigam states that these have become the basic building blocks of the metaverse economy. Metaverse or not, semiconductors have become an increasingly important part of our daily lives. Since 1977, semiconductor chips have grown by as much as 70 times, largely thanks to the proliferation of personal computers and cell phones. While the value of this sector in the global market increases from 1 percent to 3 percent, it can be 8 percent by 2030, according to Nigam. He also pointed out that the sectors that benefit most from the metaverse may be the process, memory and connectivity.

Hardware race continues on Metaverse

Nigam says major augmented reality (AR) and virtual reality (VR) platforms “advances in chipsets, display, optics and monitoring solutions to improve user experience” He said he’s alive. He also noted that the weight of these devices has been noticeably reduced with better design changes. However, both platforms failed to fully resolve their difficulties.

For example, fresnel lenses used in VR introduce chromatic aberration or discoloration. Nigam says that although new lens materials have been created, it will take some time to commercialize them. On the other hand, modern AR devices have disadvantages such as double images, distortion, higher costs, inconvenience and lower image resolution.

Here are the 12 stocks that could gain momentum with the Metaverse explosion

Finally, according to Nigam, truly diving into the metaverse will require major innovations in display mechanisms, because metaverse displays, unlike traditional displays, are very accessible to consumers. It requires being closer. Alongside this design challenge, Nigam said, displays will need to adopt smaller sizes, lower power consumption, wider views, higher resolutions, refresh rates and brightness levels for optimal performance.

With all these innovations necessary for the Metaverse to reach its full commercial potential, there are many opportunities for well-placed companies to profit. Below are the 12 stocks that Nigam and his team deemed top picks in the above categories:

1. Goertek
2. Luxshare
3. Novatek
4. Murata
5. Nvidia
6. Marvell
7. Intel
8. Micron
9. TSMC
10. Samsung
11. Win Semi
12. Mediatek