These are top stocks to play the metaverse as it transforms the tech sector, Credit Suisse says

Published Tue, Feb 8 202211:51 AM ESTUpdated Tue, Feb 8 20223:12 PM EST

The metaverse has become one of the hottest investing trends in the past few months, and although many investors are still struggling to understand the new world, they know they want a piece of it. Credit Suisse has highlighted several of its favorite stocks to play the metaverse. It sees a future internet that's "more spatially immersive, compelling and frictionless" and viewable on traditional devices or virtual and augmented reality, the firm said in a recent note. Companies' use of the metaverse is growing to include not just gaming but also entertainment, work collaboration, social media, virtual worlds, education, fitness and more. Credit Suisse analysts identified content, hardware, semiconductor, telecom and infrastructure companies poised to benefit from the building and development of the metaverse. Here is its top 10: Disney and Warner Music are among the firm's favorites for content. Virtual concerts in the pandemic that took the place of live performances showcased the opportunity to reach more fans globally than in a live physical venue and to experiment with special effects and fan-interaction opportunities, Credit Suisse noted. Chipmaker Nvidia is helping lower the cost of analytics with artificial intelligence and machine learning and therefore supports "the largest total addressable market expansion and value grab opportunity in all of technology," the firm said. "AI is expected to become pervasive across the economy and within our daily lives, and as the cost of analyzing and manipulating data declines, which NVDA is enabling for the first time ever, the quantity and variety of use cases is expected to continue to accelerate," the analysts wrote. Marvell is another chip stock on Credit Suisse's list. Microsoft and Facebook parent Meta Platforms are developing ways to help people represent themselves better in the metaverse. Both companies have publicly committed to being an integral part of the metaverse. Intel and Adobe , as well as data center companies Arista Networks and GDS are also among Credit Suisse's favorites.

A tarp with the Facebook thumbs-up logo covers the sign in front of the Facebook headquarters on October 28, 2021 in Menlo Park, California.

Justin Sullivan | Getty Images

The metaverse has become one of the hottest investing trends in the past few months, and although many investors are still struggling to understand the new world, they know they want a piece of it.

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