Let’s step back from the daily hurly-burly of the financial markets to focus on a technological megatrend that’s poised to enrich proactive investors.

Albert Einstein once said: “Technological progress is like an axe in the hands of a pathological criminal.”

I can’t think of a better description of how “disruptive” technology can mercilessly sweep away the old order and generate undreamed-of opportunities. It’s worth remembering this truism, in the context of the technology sector’s continued bull run.

Technological change never stops. New breakthroughs (and new millionaires) are continually born. The trick is to pinpoint nascent megatrends and act fast, before the herd catches on. We’re now on the cusp of the next wave of digital development.

Below, I’ll pinpoint a technology that’s transforming society: virtual/augmented reality (VR/AR). I’ll also steer you toward a hidden play on VR/AR that’s about to explode on the upside.

The latest economic data show that the U.S. economy has avoided a recession and continues to grow. The Bureau of Economic Analysis (BEA) reported on January 25 that “real” (inflation adjusted) U.S. gross domestic product (GDP) grew 2.5% year-over-year in 2023. Economic expansion gives corporations the wherewithal to make greater investments in IT infrastructure.

But the tailwind of disruptive innovation isn’t dependent on the economic cycle. VR/AR, the cloud, artificial intelligence, electric and autonomous vehicles, pilotless aircraft, the Internet of Things… all of these technologies represent unstoppable trends that transcend a single GDP quarterly report.

For future tech investments in 2024, I suggest that you gravitate toward smaller value plays. The market in the new year appears to be rotating toward value and small caps. Tech stocks still offer outsized growth, but there’s more to the sector than a handful of mega-cap media darlings.

Keep an eye on the actions of Silicon Valley giants with deep pockets. They increasingly need to find new avenues of growth by gobbling up smaller, entrepreneurial firms.

You may think that the majority of tech stocks are overvalued, but that’s not so. A closer examination of the tech sector reveals that it has become a bifurcated market, with a highly visible minority of Wall Street behemoths trading at high multiples, while less-loved but intrinsically strong stocks get short shrift.

Certain tech niches stand out. Notably, VR/AR reality is a booming, high-margin business with a broad range of applications across industries,

The VR/AR revolution isn’t just about trendy games. It’s not just for entertainment. When you think of VR glasses you might form a picture of video game players. But in the real world, the biggest demand for this technology is in everyday business. That’s where augmented reality (AR) smart glasses come in.

According to a recent report from research firm Statista, the VR/AR market is projected to generate revenue of US$38.6 billion in 2024. This market is expected to grow at an annual rate of 10.77% (compound annual growth rate from 2024-2028), resulting in a projected market volume of US$58.1 billion by 2028.

Imagine attending a virtual business meeting with the ability to project data onto your smart glass lens. Or using your glasses to count inventory. Or diagnosing a patient who lives miles away. Well, these applications already are in daily use.

The following chart breaks down VR/AR applications according to industry:

Which brings me to tech giant Apple (NSDQ: AAPL).

On Friday, February 2, Apple is scheduled to release its new Vision Pro device, a headset that promises to shake up the VR/AR market. The $3,500 device includes high-resolution displays and sensors that track eye movements and hand gestures. It’s one of Apple’s most ambitious products yet.

However, the tech analysts at Investing Daily have determined that the Vision Pro is dependent on mission-critical software made by a tiny, under-the-radar innovator. Without the software provided by this small company, Apple’s much-ballyhooed device would be a catastrophic failure.

Apple’s dependence on this software opens a huge investment opportunity. You won’t see this small-cap stock mentioned on CNBC, but it’s poised to explode on the upside.

I urge you to make your move before February 2. That’s the day Apple rolls out the new Vision Pro device, and if my colleagues are right, that’s when a profit surge could start for the company’s small software partner. Click here to learn more.

John Persinos is the editorial director of Investing Daily.

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This article previously appeared on Investing Daily.