Is NVIDIA (NVDA) The Best Gaming Stock to Invest In According to Billionaires?
The gaming industry has experienced significant changes over the past few years. During the COVID-19 pandemic, the sector saw remarkable growth as more people spent time indoors. However, this momentum did not continue after restrictions eased, which led to lower consumer spending on games and consoles. Economic uncertainties and challenges like inflation further impacted the industry, resulting in layoffs, studio closures, and project cancellations across the industry in 2024. Despite these setbacks, analysts are optimistic about a recovery supported by upcoming major releases.
READ ALSO: 8 Fastest Growing AI Stocks To Buy Right Now and 20 Best Fintech Stocks to Buy According to Billionaires.
According to research firm Newzoo, video game consoles are expected to be the biggest growth driver in the market until 2027. The anticipated launches of GTA VI in fall 2025 and the new Switch console in summer 2025 are seen as key factors fueling a rebound. GTA V, the predecessor to GTA VI, is one of the most profitable games ever and has sold over 210 million by December 2024. Analysts believe new releases will encourage players to spend more on consoles and games. This could potentially reverse the industry's recent slowdown.
According to the report by Newzoo, console software revenue is projected to increase 7% from 2024 to 2027 and outperform PC software revenue growth of 2.6%. By 2027, console revenue is expected to account for over 56% of the total PC and console software revenue of $92.7 billion. Total playtime increased by 6% in 2024 and Q4 saw the highest quarterly playtime thanks to blockbuster releases like the new Call of Duty title.
Emmanuel Rosier, director of market analysis at Newzoo, told Reuters that major console titles, such as Spider-Man and God of War, are driving engagement on consoles. He also pointed out that these AAA or AAAA releases have less impact on PC gamers, who prefer older titles.
To compile our list of the 10 best gaming stocks to invest in according to billionaires, we looked for the largest gaming companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best gaming stocks. Next, we focused on the top 10 gaming stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey's Q4 2024 database. Finally, the 10 best gaming stocks to invest in were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey's Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a leading American technology company and a major player in the gaming industry, particularly through its powerful graphics processing units (GPUs). Since inventing the GPU in 1999, the company has revolutionized computer graphics and greatly contributed to the growth of PC gaming. Its GeForce line of GPUs is well-regarded among gamers, offering high-performance graphics for immersive gaming experiences. In 2020, NVIDIA Corporation (NASDAQ:NVDA) also launched GeForce NOW, a cloud-based gaming service that allows players to stream games directly from the cloud to devices like laptops, desktops, and smartphones. This makes gaming more accessible and convenient. According to billionaires, NVDA is one of the best gaming stocks to invest in.
The company is actively integrating AI into its products to enhance user experience across gaming, computing, and other industries. In January 2025, NVIDIA Corporation (NASDAQ:NVDA) released the GeForce RTX 50 Series Desktop and Laptop GPUs for gamers, creators, and developers. These new GPS are powered by Blackwell architecture, fifth-generation Tensor Cores, and fourth-generation RT to deliver breakthroughs in AI-driven rendering, including neural shaders, digital human technologies, geometry, and lighting. The GeForce RTX 5090 GPU delivers more than 3,352 trillion AI operations per second (TOPS) of computing power and is the fastest GeForce RTX GPU yet.
The GeForce RTX 50 Series GPUs power autonomous game characters and NVIDIA Corporation (NASDAQ:NVDA) is launching a suite of new ACE technologies that make game characters act more human-like. With generative AI, game characters will be able to perceive, plan, and act like human players. NVIDIA Corporation (NASDAQ:NVDA) is teaming up with leading game developers to incorporate ACE autonomous game characters into titles like PUBG: BATTLEGROUNDS, inZOI, and NARAKA: BLADEPOINT MOBILE PC VERSION.
Overall, NVDA ranks 2nd on our list of the best gaming stocks to invest in according to billionaires. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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