NVDA, XIACY, WIMI and Tech Giants Race to Dominate: Will AI Glasses Be the Next Big Thing in 2025?

The CES (Consumer Electronics Show), is regarded as a barometer for the tech industry, which will take place in Las Vegas, USA, from January 7 to 10.

Known as the “Spring Festival Gala of Technology,” CES has long been a key platform for showcasing cutting-edge technological achievements and innovative products. With the continued implementation of AI applications, AI glasses are expected to be a major highlight of this year’s event.

Recently, many exhibitors in the AI glasses sector have been eager to unveil their “black tech” innovations. Companies like Sony, Thunderbird Innovations, and DPVR have already started teasing new AI glasses-related products.

Notably, NVIDIA unveiled a new AR glasses patent just ahead of CES, signaling a potential breakthrough in the AR glasses field. Making AR devices lighter and delivering better display performance has always been a key focus for AR glasses developers, and NVIDIA’s new patent aims to address these challenges.

The market widely believes that AI glasses will be the next device likely to become a phenomenon in the smart terminal sector.

Recent trends in AI glasses-related stocks on the US stock market further support this view. Over the past month (30 trading days), shares of Vuzix (VUZI), one of the world’s largest smart glasses suppliers, surged by an impressive 310%. WiMi Hologram Cloud (WIMI), the leading holographic AR stock, saw gains exceeding 110%. Meanwhile, other players, including wearable technology developer Kopin Corporation (KOPN), laser scanning and projection technology company MicroVision (MVIS), and IC design firm Himax Technologies (HIMX), posted increases ranging from 45% to 74%.

With the rapid advancement of artificial intelligence, AI glasses are emerging as the latest trend in smart wearable devices, steadily moving to the forefront of the market.

According to a report by XR industry research firm Wellsenn XR, AI smart glasses are poised to make significant inroads into the traditional eyewear market starting in 2025, against a backdrop of steady growth in conventional eyewear sales. By 2029, annual sales of AI smart glasses are expected to reach 55 million units. The industry is projected to enter a phase of rapid expansion post-2030, with sales potentially hitting 1.4 billion units by 2035. Additionally, IDC predicts that by 2030, AI glasses will achieve a global penetration rate of 20%.

A noteworthy development comes from analysts at Goldman Sachs, who highlight the rising popularity of the Ray-Ban Meta smart glasses, co-developed by Meta and Ray-Ban. According to Sensor Tower, downloads of the Meta View companion app surged by over 200% year-over-year in October. As AI technology evolves, smart glasses are becoming a highly contested space for major tech companies.

Moreover, the market anticipates that the AI+AR glasses sector will become even more dynamic by 2025, with major players such as Xiaomi, Samsung, and Meta gearing up to launch new AI+AR product lines.

Xiaomi Group-W (01810.HK), known as a “disruptor” in the industry, is expected to release its next-generation AI glasses in Q2 2025. According to media reports, this product will be positioned as a direct competitor to Meta’s Ray-Ban Meta glasses. Lei Jun, Xiaomi’s CEO, has projected shipments exceeding 300,000 units for this product. Following Xiaomi’s release, Samsung (Q3 2025), ByteDance (Q3 2025), Meta (Q3 2025), and Apple (2026) are also expected to unveil their respective offerings.

Separately, the U.S. has recently launched the IVAS Next (Integrated Visual Augmentation System Next) program, aimed at developing the next generation of augmented reality combat systems (AR glasses).

According to Global Times, the release of Meta’s Ray-Ban Meta smart glasses in collaboration with Ray-Ban marks the beginning of the smart glasses market’s shift toward the “AI+AR” direction.

XREAL founder and CEO Xu Chi has emphasized that AR is the best carrier for AI, and AI is the optimal interaction method for AR. Together, these two technologies are likely to become the core drivers of transformation in consumer electronics, semiconductors, and end-user experiences over the next decade.

Runto Technology predicts that by 2025, AI features will achieve a penetration rate exceeding 60% in the smart glasses market, signaling the start of a new development phase for the industry.

Looking ahead, the integration of AR and AI technologies in smart glasses could become a reality. Futu Information has compiled a list of AI+AR concept stocks for investors to consider.

Beyond the well-known tech giants such as Apple (AAPL ), Meta Platforms (META ), and Google-A (GOOGL ), the AI+AR glasses market also includes:

– Snap Inc (SNAP ): The social media giant released the fifth-generation Spectacles smart glasses last year, integrating OpenAI’s multimodal AI model. Users can generate AI images as AR filters or interact with Snap’s AI chatbot, MyAI, to obtain contextual information about objects in their field of view.

– Sony (SONY): The camera giant teased a pair of smart glasses and a smart pen for spatial drawing in a CES 2025 preview video on YouTube, hinting at potential product launches during the event.

– Vuzix (VUZI): An AR smart glasses manufacturer, Vuzix will showcase its latest waveguide and smart glasses reference designs at CES. Notably, in November 2024, the company secured a six-figure order from a U.S. defense contractor for custom waveguide products, supporting lightweight HUD development. This strengthens Vuzix’s foothold in the defense market and bolsters its innovations in XR technology.

– Kopin Corporation (KOPN): A global leader in wearable technologies and modules, Kopin has extensive coverage in military AR/VR applications, including core display technologies for F-35 helmets, gun sights, and night vision devices. Its product line features advanced microdisplay technologies like AMLCD, LCoS, MicroOLED, and MicroLED.

– WiMi Hologram Cloud (WIMI): Known as the “first holographic AR stock,” WiMi is actively advancing its AI+AR holographic glasses and launching AI+AR-based innovative products. The company is focusing on AR glasses interactive generation issues while exploring applications like AI-XR digital humans, AI-AR live streaming, AI-metaverse social platforms, and AI-AR avatars, paving the way for multi-domain growth.

– Innovative Eyewear (LUCY ): The company introduced the Lucyd Lyte 2.0 in 2023, a smart glasses model capable of accessing ChatGPT via a voice interface, marking it as the first to integrate such AI functionality.

Key players include NVIDIA (NVDA ), Himax (HIMX ), MicroVision (MVIS ), and zSpace (ZSPC ). Notably, Himax will showcase its industry-leading low-latency glasses-free 3D display solution at CES 2025, featuring proprietary technologies like “3D Interlacing Rendering” and “Structured Light Vision AI.” This comprehensive solution aims to support AR/VR product development and upgrades to meet the growing demand in the market.

Major players include Microsoft (MSFT ), Autodesk (ADSK ), Roblox (RBLX ), PTC Inc (PTC ), ANSYS (ANSS ), Unity Software (U ), Etsy Inc (ETSY ), and The Glimpse (VRAR ).

– Chips: Advanced Micro Devices (AMD), Qualcomm (QCOM ), KLA Corp (KLAC )

– Electronic Components: Universal Display (OLED)

– Haptic Technology Developers: Immersion Corporation (IMMR)

Investors can explore ETFs such as Roundhill Ball Metaverse ETF (METV ), iShares Future Metaverse Tech and Communications ETF (IVRS ), ProShares Metaverse ETF (VERS ), and First Trust Indxx Metaverse ETF (ARVR ).

The year 2025 is expected to be a pivotal one for the AI glasses market, presenting both opportunities and challenges. A research report from Citic Securities highlights that the AI glasses sector remains in its thematic investment phase. However, if key products from major players achieve blockbuster success, the focus could shift from thematic to fundamental investments.

That said, the industry is still far from maturity. Both AR and AI glasses face significant technical hurdles that need to be addressed before a true market explosion can occur.