From Nasdaq, Inc.:

The video games market has seen significant growth and development, thanks to innovations like microtransactions and subscription-based services. Valued at $250 billion, it’s expected to grow at a rate of about 9% through 2028, making it a favorable long-term investment opportunity.

Three top gaming stocks to buy in January are Advanced Micro Devices, Microsoft, and Intel. Advanced Micro Devices has shown impressive growth as it transitioned into AI and is a crucial player in the gaming community, while Microsoft and Intel have each made unique contributions to the gaming world.

Advanced Micro Devices’ success in the video gaming segment has led to a 30% rise in revenue to $1.5 billion over the past five years, with operating income increasing by 72% to $208 million. Despite an expensive forward P/E ratio of 55, AMD’s projected growth of 87% by fiscal 2025 makes it an attractive investment in gaming for this month.

As one of the biggest names in video games, Microsoft introduced the Xbox Game Pass, a subscription service that boasts a 150% rise in members from 2020 to 2022, reaching 25 million. It also acquired game developers to enhance its content and is a solid, albeit pricey, investment option in video games this month thanks to its significant cash flow.

Intel might not first come to mind in a discussion about gaming, but like AMD, its CPUs have been widely embraced by the gaming community. Its client computing segment, which includes gaming income, posted operating income growth of 43% to $2 billion in the third quarter of 2023. With a projected growth of 180% by fiscal 2025, Intel is another smart option to invest in video games this month.



Read more: 3 Top Gaming Stocks to Buy in January