11 Best Gaming Stocks To Buy in 2024

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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 the best stocks to invest in for 2024 and beyond. 

11 Best Gaming Stocks To Buy Right Now in 2024

All of the numbers in the table below are based on data collected on Nov. 13, 2024, from Nasdaq and Yahoo. Share values are the closing prices from Nov. 12.

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 slight gains for the next year. Also, the stock offers a small dividend, currently yielding 0.47%.

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 “buy” rating on it, with an average one-year price target of $190. That would represent a gain of around 5% 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 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 six analysts following Sony have a consensus “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 141st-largest in the entire world as of November 2024, according to the Fortune Global 500.

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 196.94% 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 “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 Saudi Aramco and Apple. 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 “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 Q3 2024, Sea Ltd. announced a record-breaking 31% increase in revenue, and net income of $153 million vs. a net loss of $144 million in Q3 2023. The newly profitable company shows long-term promise, and analysts rate it a “buy.”

11. Capcom (CCOEY)

Capcom is a bit under the radar, especially for a $9 billion company. Currently, no analysts are watching the stock. 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 outperformed the S&P 500 so far this year and over one, three and five years.

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.

To Buy Gaming Stocks

1. Open an account. You’ll need to provide contact information as well as your Social Security number and details about your finances and investing experience.
2. Fund your account. Before you can buy stock, you’ll have to transfer money into your brokerage account. You can usually do that by linking a checking account to your investment account.
3. Select which stocks to invest in. Online brokerages and investment apps often have research tools you can use to learn about companies you’re considering investing in. Also, you can find a wealth of financial information in the “Investors” section of the companies’ websites. That’s where they post earnings reports and other financial documents.
4. Place an order. Search the stock you want to buy on the brokerage website or app, and click the “Trade” button. Enter the number of shares — or, if you’re buying a fractional share, enter the dollar amount you want to invest. Then review and submit your order.

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 Nov. 13 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.

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