Analysts See Profit Potential in Gaming Stocks
Analysts identify promising profit opportunities in gaming stocks, particularly with Nintendo and Tencent. New console models, such as the anticipated Switch 2, and popular game updates attract both players and investors. These developments are driving factors for industry growth.
Nintendo and Tencent: Key Players in the Gaming Sector
Nintendo holds a top position in the VanEck Video Gaming and eSports ETF with around 7.5% weighting. This positioning underscores the company’s importance in the gaming sector. The price-earnings ratio (P/E) of Nintendo is estimated to exceed 53 for 2025, suggesting high growth expectations.
Tencent, holding a similar ETF share, benefits significantly from its presence in online and mobile gaming. As one of the largest global players, Tencent drives innovations in cloud gaming and remains a key player.
Market Growth and Technological Trends
The overall gaming market recovered in 2023, achieving revenues of over 184 billion US dollars in 2024. Analysts expect annual growth of 8.3% until 2033, potentially increasing the market value to around 535 billion US dollars. Particularly, technological trends such as cloud gaming and mixed-reality headsets are revolutionizing the market.
Cloud gaming alone is expected to reach a revenue of approximately 10.5 billion dollars by 2025, which increases the attractiveness of these investments.
Investment Opportunities in the Gaming Sector
| Company | Key Drivers | ETF Share | Valuation Trends |
|---|---|---|---|
| Nintendo | New Console Switch 2, Strong Brands & Game Franchises | ~7.54% | P/E rises significantly to about 55 (2025 estimate) |
| Tencent | Mobile Games, Cloud Gaming Investments, Large User Base | ~7.52% | Stable Growth Value |
The VanEck Video Gaming and eSports ETF consolidates these opportunities by focusing on leading companies like Nintendo and Tencent, along with other key players. The ETF’s performance outperforms the MSCI World Index with an annual return of over +59% (as of June/July 2025).
Overall, new console innovations like the Switch 2 and updates to major game hits provide good momentum for further growth in leading gaming stocks and represent attractive opportunities for investors.
Sources: [1], [2], [3], [4], [5]