National 5G networks went live in 2020, but this enormous technological transition will take years to complete, affecting broad chunks of the global economy, from tiny tech and infrastructure firms producing 5G equipment and small-cell radios to mobile network operators offering 5G service. Consumers will need to update to smartphones and other gadgets that can connect to 5G networks along the way. The 5G upgrade cycle has begun, and investors should keep an eye on it.
Top 5G Stocks for 2021
We look at the best 5G stocks that are directly connected to the development and adoption of the 5G network, rather than their investment potential. The information below should be used as a reference to help you decide which stocks are appealing to you, but you should always do your own research before investing.
Verizon Communications
Verizon is a telecommunications company based in New York, United States. Verizon picked Ericsson to help them in upgrading their core network to support 5G speeds and communication improvements. Verizon is banking on the expansion of its wireless technology to boost future profits.
Verizon is the largest cellular communications service provider in the United States, with a 35 percent market share and a market capitalization of about $230 billion. Verizon presently pays the largest dividend on the list, and its earnings report following the March 2020 Coronavirus market meltdown proved its resilience and ability to withstand storms. Based on the aforementioned data, the company has a high potential for future growth, especially given the anticipated future use of the 5G network.
Ericsson
Ericsson is a Swedish telecommunications equipment and services firm based in Stockholm. They deal in information communication technology services, software, and infrastructure, with a market share of about 27% in 2G/3G and 4G mobile network infrastructures. Ericsson has a significant stake in the 5G revolution, which comes as no surprise.
With 81 partnerships completed by February 2020, Ericsson provides hardware and services that enable telecom operators to update their networks to match the speed improvements of 5G technology. Ericsson also claims that 25 of its networks are operational, in addition to the agreements. Ericsson has a strong position in 5G, having been the first firm to build 5G networks across four continents and claiming to offer the widest range of 5G-compatible devices.
With a market capitalization of about $29 billion, Ericsson is a prosperous corporation. ERIC has also paid a steady dividend and stated that COVID-19 had little impact on operational income and cash flow in the first quarter of 2020. Ericsson has the potential to be at the forefront of the 5G revolution because of its solid position and fundamentals.
Qualcomm
Qualcomm, is a San Diego, California-based technology firm. They design and develop software and semiconductors for wireless devices such as cellphones. Qualcomm also develops and markets wireless technologies, and has already licensed a number of 3G and 4G technologies.
More connected gadgets mean more revenue for Qualcomm, thanks to an increase in license revenues for 5G technology. Last year, Qualcomm signed a multi-year partnership with Apple for the supply of their chipset, highlighting Qualcomm’s potential involvement in 5G technology. Qualcomm’s processors allow communications in everything from IoT gadgets to self-driving cars, so 5G provides a significant potential for the company.
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