Sony Group Corporation (SONY) is a Buy amid Robust Operating Profit Growth and Buyback Program

Sony Group Corporation (NYSE:SONY) is one of the best augmented reality stocks to buy right now. Sony Group Corporation (NYSE:SONY) holds a consensus Moderate Buy rating, supported by 2 recent analyst buy recommendations and no holds or sells, with an average 12‑month price target of $34.00.

On November 12, analysts at Goldman Sachs reiterated a Buy rating on Sony Group Corporation and raised the price target to $34.75 from $30.25.

The price target hike is in response to the company delivering a stronger-than-expected rise in second-quarter operating profit and announcing a share buyback of $648 million. Revenue in the quarter totaled $20.14 billion, as operating profit rose 10% year over year to 2.76 billion.

The Japanese technology giant expects its full year operating profit to increase by 8% from the previous forecast. It also lifted its annual revenue projection by 3%. The growth will be driven by imaging and sensing solutions and by the music segment.

Following better-than-expected second-quarter 2025 results and impressive guidance, TD Cowen analyst Doug Creutz reiterated a Buy rating on the stock on November 12 and set a $34 price target.

Sony Group Corporation (NYSE:SONY) is a technology company and it is best viewed as an AR enabler. The company develops near-eye display technologies such as Micro-OLED and OLED microdisplays, along with imaging and sensing hardware used in AR/VR headsets and smart glasses. In 2024, Sony introduced an XR head-mounted display featuring 4K OLED microdisplays with video see-through and joined the AR Alliance, underscoring its commitment to the ecosystem. While its contributions range from high-resolution displays to AR content tools and tracking systems, augmented reality remains only a small part of Sony’s diversified portfolio spanning gaming, entertainment, electronics, and sensors.

While we acknowledge the potential of SONY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.