Gaming Stocks Are A Playground For Traders

The "FANG" trade has dominated headlines throughout the past few years and gained popularity among investors and traders as the group of technology stocks produced superior returns compared to the broader indices.

However, there is a handful of other stocks from another sector that also offered superior returns. According to USA Today, video game stocks and related businesses have benefited from strong consumer demand for entertainment products.

For example, NVIDIA Corporation NVDA, the maker of graphic chips used in computers designed for hardcore gamers, has seen its stock surge 43 percent since the start of 2016 and 132 percent over the past year.

Activision Blizzard, Inc. ATVI and Electronic Arts Inc. EA, two of the most notable game developers and largest by market capitalization, saw their stocks gain 17 percent and 14.5 percent, respectively, throughout the second quarter.

Meanwhile, the appetite for gaming stocks isn't unique to North American investors. France-based Ubisoft Entertainment saw its stock rise 17 percent on the Paris stock exchange during the second quarter.

"The popularity of gaming has grown so great that it's spawned professional leagues and TV networks dedicated to showing their contests," USA Today noted. "Meanwhile, the proliferation of consumer game platforms — from smartphones to home-media consoles to virtual-reality headsets — is generating an explosion of new titles."

Finally, the report suggested "aggressive" investors who are "disciplined enough" to buy gaming stocks on dips and cash in profits on price gains could realize success in gaming related stocks.