The video game industry could see a massive boom in just weeks.
This December, Sony will release its latest PlayStation 5. Microsoft will release its new XBOX. And both could significantly drive video game stocks, and even a chip stock even higher. After all, with new gaming consoles comes even bigger demand for new games.
Better, video game stocks have a strong history of running on the release of new consoles.
KeyBanc for example says related stocks ran 40% to 50% higher in 2014, the year after Sony and Microsoft released the PlayStation 4 and the XBox One.
We could see that happen again this time around, too.
On the anticipation, keep an eye on Activision Blizzard (ATVI), for example. With the release of new gaming consoles, the company is releasing Overwatch 2 and Diablo 4.
Also, keep an eye on Electronic Arts (EA), which has been referred to as “materially undervalued” by analysts at Brown Advisory. The company is expected to launch its 2021 FIFA soccer game this week, and has a strong business model, and attractive stock price, they added, as noted by MarketWatch.
In addition, keep an eye on Advanced Micro Devices (AMD). The company’s chips will be used in the new consoles from Sony and Microsoft. In addition, according to Northland Securities, “In our view, AMD is well position for 2H:20 as new game consoles launch for the holiday season, and server market share gains accelerate as Milan ramps in Q4. Moreover, we believe these products are relatively immune if the macro weakens.”