Oculus Rift finally came to the public yesterday. After years of speculation and more preview events than I can count, Facebook’s magic headset finally hit the market with 30 games to its name. It did so with little fanfare: no big press conference, no launch party, and no headsets even for the majority of preorders. But make no mistake: yesterday was a very big deal. The Oculus Rift will be followed to market by the HTC Vive and Sony’s Playstation VR, marking the slow progression to true mass market VR. Some have their reasons to be skeptical, but I don’t share them. VR is going to be huge, and it’s time to think about how to make some money off that. Facebook and Sony would be solid ways to go, but if you want to go headset agnostic I’d invest in AMD and NVIDIA.
VR isn’t cheap, processing power wise, and there aren’t many computers out there that can handle the steep requirements of the Oculus Rift or the HTC Vive. So if people start getting on board with the technology, they’re going to need to buy a graphics card capable of keeping pace, and AMD and NVIDIA are the only companies to go to. Of these two companies, AMD is the bigger gamble: the company has had more than its share of trouble recently, and problems on the corporate side of things make it a riskier stock. But if VR takes off, AMD benefits so long as it still exists as a company.
That’s for PC and Console VR, of course. ARM would be an interesting notion for a VR headset that looked more like a mobile device, even we don’t have a real competitor to hang that on yet. Still, it’s hard to imagine something like a more effective version of Gear VR won’t materialize.
You either believe in VR or you don’t — it’s one of those moments where you’ve just got to look at the technology, look at the world, and decide whether or not you think it’s the real deal. I tend to believe. It’s going to be a tough year, with some hard lessons and slowish adoption. Make no mistake — neither of these stocks would be short buys. But it’s going to get better. And when it does, people are going to want to buy graphics cards to run these magic new machines. And they’re going to buy them from AMD and NVIDIA.
Source : Forbes