Metaverse has become the hot buzzword in the technology sector. Widely considered to be the next stage in the evolution of internet technology — also called Web 3.0 — the metaverse refers to seamless, persistent, interactive, and immersive 3D virtual reality or mixed-reality experiences, which is the interaction of real-world and digital-world objects. The metaverse is expected to change the way people study, work, play, travel, and socialize by shifting many of these activities from a physical economy to a virtual economy.
Currently, anything associated with the metaverse is being increasingly considered to be the next blockbuster opportunity. However, to make money in the stock market, investors should learn to separate fact from fiction. Although the metaverse is undoubtedly a huge opportunity — estimated to be worth $1 trillion to many trillions, depending on the source — only a few technologically sound and financially stable companies with solid reputations will be capturing a major share of this market.
Building on this idea, Nvidia ( NVDA -0.79% ) and Microsoft ( MSFT 2.06% ) are the two blue chip companies that seem poised to make the most of this evolving opportunity.
The metaverse entails the use of various advanced technologies such as augmented reality, virtual reality, and video streaming, which require parallel (many calculations are carried out simultaneously) and superfast computations. This can be made possible by Nvidia’s industry-leading high-throughput graphics processing unit (GPU) chips.
Nvidia’s GPUs are widely preferred by gamers worldwide for their capability to render ultra-realistic graphics, and by data centers for facilitating huge and complex workloads. Nvidia has recently launched its first data center CPU, Grace CPU, which is well-suited for artificial-intelligence (AI)-based and high-computing workloads.
The company has also introduced the next-generation Bluefield data processing unit (DPU), aimed at accelerating processing for software-defined networking, data storage, cybersecurity, and artificial-intelligence applications. All of these next-generation hardware technologies are well-suited to support the metaverse.
Going beyond hardware, Nvidia has also come up with a scalable, multi-GPU, and real-time software-development platform called Omniverse. This technology platform will enable real-time collaboration among global 3D-design teams working on multiple software platforms. Nvidia expects enterprises to use Omniverse for improving productivity through remote collaboration across multiple 3D-design software and by creating digital twins of a physical environment (to plan and simulate in the digital world and then replicate in the real world).
Recently, in November 2021, the company introduced the Omniverse Replicator synthetic-data-generation engine, which generates simulated synthetic data that is used to train artificial-intelligence models. The company has also launched Omniverse Avatar, which …….