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10 Best Gaming Stocks To Buy in 2022

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Niche investing opportunities become more popular as investing is more widely available to the average person. Investors are increasingly interested in familiar brands that offer a sense of nostalgia or excitement. For investors interested in the video game industry, which gaming stocks are worth the investment?

Read: Looking To Diversify In A Bear Market? Consider These 6 Alternative Investments

Top 10 Gaming Stocks To Buy Right Now in 2022

All of the numbers in the table below are based on data collected on Oct. 7, 2022, from Nasdaq.com.

Gaming Stock Share Value One Year Target Share Volume
Electronic Arts (EA) $123.66 $153.50 1,558,342
Take-Two Interactive Software (TTWO) $121.38 $167.50 2,031,007
Nintendo (NTDOF) $41.28 N/A 564,016
Activision Blizzard (ATVI) $73.83 $95 564,016
Tencent (TCEHY) $35.21 N/A 2,516,893
SciPlay (SCPL) $12.63 $15 169,602
Nvidia Corp. (NVDA) $131.30 $200 64,415,690
Microsoft Corp. (MSFT) $246.79 $320 20,239,890
Alphabet Inc. (GOOGL) $101.42 $147.50 22,323,990
Sea Ltd. (SE) $61.92 $112 4,227,787

1. Electronic Arts (EA)

EA, with its broadly popular EA Sports subdivision, produces the bulk of its revenue from game downloads within brands like FIFA and Madden. Based on historical trends, experts believe that Electronic Arts will outperform other video game brands that have lower quality scores. It recently ranked in the 75th percentile for return on assets and 86th in buyback yield.

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2. Take-Two Interactive Software (TTWO)

This company represents two popular gaming brands — Rockstar Games and 2K. Grand Theft Auto and NBA 2K are two popular games that many people may recognize. It reported that Q1 2023 revenues were up 36% from the previous year to $1.1 billion.

3. Nintendo (NTDOF)

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 lately due lackluster sales and new-release delays, but things appear to be looking up.

A recent 10-for-1 stock split slashed share prices, which could attract new investors — especially younger ones who grew up glued to Nintendo games. And the company has had some recent successes, such as record domestic — Japanese — sales of its Splatoon 3, CNBC reported.

4. Activision Blizzard (ATVI)

As one of the largest video game brands in the world, Activision boasts video game brands like:

Experts anticipate stock value growth of nearly 30% in the coming year for Activision. One reason for these estimates is that Activision has plans for video game innovation to generate new revenue streams for the company.

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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. The company’s revenue is trending with a mid-20% growth anticipated over the next several years.

6. SciPlay (SCPL)

This brand is known for casino-like online games. It reported solid earnings in the first half of its 2023 fiscal year. One pro of SciPlay is that the company ended 2021 with little debt and $364.4 million in cash.

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.

In Q2 2022, Nvidia saw a 33% decrease in revenue within the gaming segment as pandemic-era demand shifts and retailers reduce inventory to make room for new products. Looking ahead, the company expects the decrease to be partially offset by growth in its data center and automotive segments.

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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 its Q2 2022 earnings report, the company announced a 10% increase in Xbox content and services revenue compared to Q2 2021. Ongoing product launches and new licensing partnerships point toward revenue continuing on an upward trend.

9. Alphabet Inc. (GOOG, 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, according to Fortune. Many people may not relate these names to gaming, but YouTube boasted 431,000 unique streaming channels on YouTube Gaming Live in the first quarter of 2022, Statista reported.

YouTube ads drove $7.34 billion in revenue in the second quarter of 2022, up nearly 5% from last year.

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.

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In Q2 2022, Sea Ltd. announced a 29% increase in revenue and 17.1% increase in total gross profit year-on-year. Although the company isn’t yet profitable, it shows long-term promise, and analysts rate it a strong buy.

How To Buy Gaming Stocks

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.

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 contributed to the reporting for this article.

Information is accurate as of Oct. 7, 2022.

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.