7 Stocks to Buy as Esports Goes Mainstream

Microsoft Corporation's (NASDAQ: MSFT) role in esports includes its proprietary Xbox platform and its own Xbox tournaments. The company also acquired Activision Blizzard in 2022, which not only helped position Microsoft in the metaverse but also brought under its control two professional esports competitions, the Overwatch League and Call of Duty League.  

Although Microsoft doesn’t break out esports revenue specifically, Xbox content and services revenue appears under the company’s More Personal Computing segment, which is responsible for about 21% of the company’s total revenue.  

Microsoft’s exposure to the emerging esports sector shows that it’s a leading technology stock as well as a must-own stock in a buy-and-hold portfolio. The company has delivered a total return of 132.9% in the five years. And if you take that out to 10 years, the total return is over 1,000%. The company also pays a reliable dividend that it has increased for 20 consecutive years.  

Due to its role in building out artificial intelligence (AI) infrastructure, NVIDIA Corp. (NASDAQ: NVDA) has become one of the most followed stocks in the technology sector. However, before its graphic processing units (GPUs) were placed in data centers, the company was a picks-and-shovels play in the esports sector.  

Like many sectors, AI has its own distinct language and culture, and NVIDIA’s product offerings are an ideal fit. For example, the company’s GeForce RTX GPUs and devices that help provide gamers with the maximum frame rates for exceptional responsiveness and image quality. NVIDIA's products are consistently labeled as among the best in the industry.  

In the company’s Q3 2024 earnings report, NVIDIA’s gaming business generated approximately $3.2 billion in revenue, up 15% year-over-year and accounting for about 10% of the company’s total revenue.

As the company behind beloved sports titles such as the FIFA and Madden franchises, Electronic Arts Inc. (NASDAQ: EA) is one of the most well-known names in the game publishing industry. EA's relaunch of College Football 25 was one of the best-selling titles in its history.  

The company has parlayed the success of the Madden franchise and its strong position in licensed content into a full-week Madden Bowl that brings together the top Madden NFL players to compete for prize money. 

EA is also the parent company for some well-known single-player games such as the Star Wars, The Sims, and Apex Legends franchises. A compelling feature of the EA brand is its compatibility across virtually every platform. Electronic Arts is making significant investments into mobile esports, which it believes will be a significant growth driver for the business.  

Take-Two Interactive Inc. (NASDAQ: TTWO) is another company that is taking advantage of the popularity of sports and gaming. The company is home to the 2K platforms, including the NBA 2K franchise, which sold over 155 million units worldwide. However, Take-Two is best known for its Grand Theft Auto franchise. Both titles generate massive player engagement, and updates to these titles play a key role in the company’s deep pipeline.  

In 2023, Take-Two acquired mobile game developer Zynga. As of 2025, the company can lay claim to 15 of the top 200 grossing mobile games in the United States. 

A key feature of its business model is its proven success at getting users to play its games even when they’re old. This is also a key driver of revenue, which continues to hold up between release cycles.  

To this point, we’ve looked at a lot of the large-cap, low-risk names in the esports sector. Unity Software Inc. (NYSE: U) is a mid-cap name that illustrates the risk and the reward of this sector. The company provides a platform for developers and users to operate and monetize 3D content, such as video games. 

Industry analysts believe Unity is likely to play a key role as esports transitions from 2D to 3D virtual reality environments. In October 2024, the company launched its Unity 6 platform which the company believes will “enable the creation of better games, built more quickly and more efficiently than ever before.”  

In late 2024, the company announced that it was going back to its seat-based subscription model for its gaming customers. The expectation is that this will lead to more predictable revenue. Analysts are also encouraged by the company’s move into other sectors such as the automotive sector.  

As you can see, there are many ways to invest in the eSports sector. But some investors may find an exchange-traded fund (ETF) to be an easier way to gain widespread exposure to the sector. If that fits your investment style, check out the Global X Video Games & Esports ETF (NASDAQ: HERO). This fund tracks the Solactive Video Games & Esports Index, a modified market-cap weighted index of companies in the video game and eSports industry.  

HERO’s holdings include a mix of companies involved in every aspect of the esports sector. Japan and the United States account for over 60% of the fund’s geographic composition. However, no stock takes up more than 10% of the fund’s 40 holdings.  

HERO launched in 2019 and has already accumulated over $1 billion in assets. It has delivered investors a total return of 73% in that time.