雅虎香港財經 3 Gaming Stocks That Will Skyrocket in 2023 Thanks to AI
One of the industries that is expected to benefit the most from advances in artificial intelligence is video games. Already, gaming companies are using generative AI and chatbots to introduce new video-game environments, create more lifelike characters, and create and test the games themselves. This is a new frontier that has the potential to radically change the video-game industry as we know it. Many video games incorporated elements of AI before ChatGPT was released to the world. But the new, more powerful, generative AI promises to take the video-game industry that was valued at nearly $200 billion last year in even more imaginative directions. Here are three gaming stocks to buy that will likely skyrocket in 2023, thanks to artificial intelligence.
Roblox (RBLX)
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Video-game developer Roblox (NYSE:RBLX) is touting the benefits of generative AI, both for its online-gaming platform and video-game developers and creators. The company is also promising to bring new experiences to users. “We see an incredible opportunity to build generative AI tools and APIs focused on Roblox,” reads a statement posted to the company’s website. While it’s still early days in the rollout of generative AI and chatbots, Roblox is making it clear that it is “all in” on the technology.
Some analysts, including those at investment bank D.A. Davidson, have been lifting their ratings and price targets on RBLX stock in anticipation of the company’s adoption of AI technology. That’s because they see AI as a major catalyst for the company and for RBLX stock.
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Roblox is already seeing the benefits of its AI strategy reflected in its share price. Since the start of this year, the stock has gained 53%, helping it to recover much of the ground lost last year during the broad-based rout of technology securities.
Even with this year’s gains, the stock remains down 7.7% from a year ago and presents a decent entry price at its current levels.
Electronic Arts (EA)
Source: Rick Neves / Shutterstock.com
Electronic Arts (NASDAQ:EA) is known for popular video-game titles such as Mass Effect and Medal of Honor, as well as its professional soccer, football and ice hockey titles. However, the company is also experimenting with generative AI, recently creating its own AI bot that trained itself to play the game Battlefield.
Electronics Art has also been talking about adding AI features to its popular open world title, The Sims, and has used deep-learning AI networks to create a 3D-gaming world.
This is all cutting edge stuff that shows Electronic Arts is taking the AI revolution seriously and appears to be taking a thoughtful approach to using artificial intelligence to enrich its video-game titles and enhance users’ experience.
Where this all leads remains to be seen, but it is encouraging that EA, one of the world’s biggest video-game developers with annual revenues of $7 billion, is using AI to such a great extent.
EA stock is down 3% this year, bringing its decline over the last 12 months to 7%, creating a good buying opportunity for long-term investors.
Microsoft (MSFT)
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Tech giant Microsoft (NASDAQ:MSFT) is arguably more invested in the current AI craze than any other company, having put $10 billion into privately held OpenAI, the company behind ChatGPT, Moreover, MSFT has integrated the popular chatbot into its Bing search engine and suite of office tools. However, Microsoft is also a leading video-game maker, as its Xbox unit produces consoles and related gear and games. The company is also trying to become a top-tier video game developer through its $68 billion acquisition of Activision Blizzard (NASDAQ:ATVI).
The Activision deal is still meandering through the regulatory approval process. But whether it gets approved or not, Microsoft can be expected to integrate AI into its Xbox console and its popular video game titles, such as Halo and Gears of War.
Even before its investment in OpenAI, Microsoft held research summits focused on integrating AI into gaming. The company has been particularly interested in how AI can help advance machine learning related to video games.
Partially due to Microsoft’s new focus on AI, MSFT stock has climbed and its share price is up 15% in 2023, though it’s still down 11% from a year ago.
On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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