Gaming stocks are exploding.
And most still offer a good deal of further upside, fueled by the upcoming release of Grand Theft Auto VI, the latest Nintendo Switch 2, and exploding growth at Roblox.
For an idea of just how explosive gaming has become, the Global X Video Games and eSports ETF (HERO) soared about 44% from its April 2025 low to now, as compared to the S&P’s 500’s 34% growth over the same time frame.
Let’s start with Take Two Interactive (SYM: TTWO)
Since bottoming out at around $190 in April, TTWO is now up to $232.40.
From here, we ‘d like to see it closer to $250 as we near the launch of its latest 800-pound gorilla, Grand Theft Auto VI. If you’re familiar with the franchise, you know it’s wildly popular and sells millions of copies. We expect no less this time.
Grand Theft Auto V sold 210 million copies, the third best-selling game of all time. Grand Theft Auto VI could sell 250 million moving forward, according to analysts.
Recent earnings haven’t been too shabby either.
An EPS loss of seven cents beat by 65 cents. Revenue of $1.5 billion, up about 12% year over year, beat by $190 million.
“For the fiscal year 2026, the GTA and NBA2K franchise owner raised its net bookings guidance to $6.05B to $6.15B (mid. $6.10B), from $5.90B to $6B, which is ahead of the consensus estimate of $6.04B. Adjusted EBITDA was guided between $827M and $886M, up from $793M to $847M previously provided (mid. $856.5, est. $833.6M),” said Seeking Alpha.
Roblox Corp. (SYM: RBLX)
Roblox Corp. has been just as explosive.
From an April 2025 low of about $50, it raced to a high of $150.59. Now back to $125.89, it’s offering us another opportunity, as RBLX catches strong support.
The company recently posted 21% year over year revenue growth to $1.1 billion. It also saw bookings of $1.4 billion, up 51% year over year. The company also raised its fiscal year 2025 revenue and bookings guidance. Revenue guidance was raised to 22% to 25% year over year. Bookings guidance calls for growth of 34% to 37%.
Helping, analysts at Wedbush just called RBLX one of “the most compelling growth opportunities in the video game sector,” as quoted by TipRanks.com.
The firm reiterated an outperform rating with a price target of $165 a share. And, “the research firm highlighted Roblox’s swift response to child safety concerns, which it believes should ease investor worries,” as also noted by TipRanks.com.
Global X Video Games & eSports ETF (SYM: HERO)
Or, if you want greater exposure to video game stocks at a lower price, there’s the Global X Video Games & eSports ETF.
With an expense ratio of 0.5%, the HERO ETF “invests in companies that develop or publish video games, facilitate the streaming and distribution of video gaming or esports content, own and operate within competitive esports leagues, or produce hardware used in video games and esports, including augmented and virtual reality,” as noted by GlobalXETFs.com.
Some of its 45 holdings include Electronic Arts, Nintendo, Take-Two Interactive, Roblox, Unity Software, and Capcom Co, to name just a few.
Since bottoming out at around $23 in April, the HERO ETF is now up to $33.14. From here, with all of the excitement being generated with gaming, we’d like to see it closer to $50 a share. It also pays out a dividend twice a year. It’s last one for just over 14 cents was paid on July 7.
Bonus: Chart of Day
We have another opportunity to jump on Advanced Micro Devices’ (AMD) weakness.
After a brief pullback, AMD caught triple bottom support, and is just starting to pivot higher again. Helping, analysts at Mizuho just raised their price target on AMD to $205 from $183.
As noted by Investing.com, “The firm specifically revised its Instinct GPU revenue projections upward across fiscal years 2025 through 2027, reflecting stronger anticipated demand for AMD’s AI accelerators. Mizuho’s analysis indicates AMD will benefit from the ramp of MI308 chips in China, while the MI355 product provides opportunity for additional upside, with Microsoft expected to increase capital expenditure significantly in fiscal 2026.”
Analysts at Bank of America reiterated a buy rating on the stock with a $200 price target. The firm cited AMD’s market share gains at the expense of Intel as its catalyst.
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Written by Ian Cooper