2 Augmented Reality Stocks To Invest In

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COVID-19 pandemic restrictions highlighted the importance of augmented reality (AR) because the restrictions compelled most businesses and schools to operate remotely. AR is believed to be the next big thing in the remote connectivity area because it digitally enhances the real time user environment and offers solutions to some of the many communication and networking challenges created by pandemic conditions.

The increasing penetration of smartphones and other advanced gadgets and the rising investments in cloud-based services are among the major factors that should drive the growth of the AR market. According to Data Bridge Market Research report, the AR market is expected to grow at a 45% CAGR between 2021 – 2028

Given this backdrop, we think it could be wise to bet on the shares of Lumentum Holdings Inc. (LITE) and Himax Technologies, Inc. (HIMX). They are well positioned to benefit from the rising adoption of AR.

Lumentum Holdings Inc. (LITE)

LITE manufactures and sells optical and photonic products. It operates in two segments: optical communications (OpComms) and commercial lasers (Lasers). The company offers tunable transponders, transceivers, direct-diode, and gas lasers, and it serves customers in markets and applications such as sheet metal processing, general manufacturing, biotechnology, and remote sensing.

LITE has collaborated with Ambarella, Inc. (AMBA) and ON Semiconductor (ON) on AI processing-based 3D sensing for next-gen AIoT devices. This new joint reference design offers an industry-first approach for biometric access control, 3D electronic locks, and intelligent sensing across verticals. This could lead to increasing demand for LITE’s products.

LITE’s net revenue increased 4.1% year-over-year to $419.5 million for the first quarter, ended April 3. Its income from operations grew 528% year-over-year to $266.9 million, while its net income increased 419.6% year-over-year to $225.5 million. The company’s EPS increased 408.9% year-over-year to $2.85.

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