7 Stocks to Buy as eSports Goes Mainstream

Microsoft Corporation (NASDAQ: MSFT) role in eSports includes its proprietary Xbox platform, including its own Xbox tournaments. The company also acquired Activision Blizzard in 2022. Not only did this help position Microsoft in the metaverse, it also put two professional eSports competitions, the Overwatch League and Call of Duty League under its control.  

Although Microsoft doesn’t breakout eSports revenue specifically, the Xbox content and services revenue appears under the company’s More Personal Computing segment. As of the company’s Q2 2025 earnings report, that unit is responsible for about 21% of the company’s total revenue.  

Microsoft’s exposure to the emerging eSports sector shows that it’s not only a leading technology stock, it’s a must-own stock in a buy-and-hold portfolio. The company has delivered a total return of 132.9% in the five years ending February 2025. 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.  

NVIDIA Corp. (NASDAQ: NVDA) has become one of the most followed stocks in the technology sector for its role in the buildout of the artificial intelligence infrastructure. However, before its graphic processing units (GPUs) were being placed in data centers, the company was a picks and shovels play on the eSports sector.  

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

In the company’s Q3 2024 earnings report, NVIDIA’s gaming business was delivering approximately $3.2 billion in revenue. Not only was this up 15% year-over-year, but it accounted for about 10% of the company’s total revenue.

Electronic Arts Inc. (NASDAQ: EA) is one of the most well-known names in the game publishing industry. It’s the company behind beloved sports titles such as the FIFA and Madden franchises. The company’s relaunch of College Football 25 was one of the best-selling titles in the company’s 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 that its compatible 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 has sold over 155 million units worldwide as of February 2025. However, the company 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 Zynga, the mobile game developer. As of 2025, Take-Two can lay claim to 15 of the top 200 grossing mobile games in the United States. 

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

If you have room for international stocks in your portfolio, Sea Limited (NYSE: SE) is a name to consider. The Singapore-based company is not a pure-play eSports company. In fact, the company’s e-commerce division is the biggest driver of revenue.  

But in addition to e-commerce, the company offers digital financial services, and a digital entertainment business that houses its gaming segment, Garena. Sea Limited’s Digital Entertainment division and accounts for about 10% of the company’s top line. 

Two of the company’s most popular games among its Asian consumer base are Free Fire and Need for Speed. And Garena hosts a number of eSports events. The company has been able to maintain daily active users above 100 million and continues to grow this metric on a year-over-year basis.  

SE stock soared in 2020 and 2021 as consumers had limited shopping and entertainment options. However, while the stock has come down from those highs, it’s comfortably above 2019 levels, which shows the strength of the company’s business model.  

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. Unity Software 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 also 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. That’s why many investors may find an exchange-traded fund (ETF) to be an ideal way to invest in the sector. If that fits your investment style, the Global X Video Games & Esports ETF (NASDAQ: HERO). The fund tracks the Solactive Video Games & Esports Index, a modified market-cap weighted index of companies in the video game and eSports industry.  

The fund’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 exposure. However, no stock takes up more than 10% of the fund’s 40 holdings.  

The HERO fund was launched in 2019 and, as of February 2025, has already accumulated over $1 billion in assets. It’s delivered investors a total return of 73% in that time.