The other day while I was in the middle of a Zoom call, my 5-year-old son stormed into my remote office to let me know that his “nanny” was out of order. The download of his favourite Netflix show, which would offer me some peace of mind to join my virtual meeting, stopped.
The funny incident made me reflect on how much we are now – more than ever – in need of higher internet speeds and glitch-free mobile videos. Apart from supporting my bad parenting practices – working from home in the company of a toddler in the middle of a pandemic drives you to find otherwise unacceptable solutions – wireless communication is a must. WiFi networks are just not enough.
As the world goes increasingly mobile, the existing spectrum bands cannot handle the thousands of devices trying to gain mobile access simultaneously. 5G, the next generation of mobile internet connection, promises new services and much faster speeds than we have been treated to so far.
What are 5G stocks? Why should you watch them?
Although 5G has certainly made some enemies, the next-gen technology also has many fans. As wireless 5G companies expand their networks, some of the 5G-related stocks are gaining ground.
The reopenings following last year’s worldwide lockdowns are pushing the demand for faster cellular broadband coverage and capacity.
5G stocks have fluctuated over the last 12 months. However, tons of dollars have been spent on upgrading technology and marketing 5G services. Wireless firms, mobile services providers, tech companies building 5G ecosystems, and chipmakers win big from the 5G market.
With a lot more growth around the corner, 5G stocks are here to stay and boost the stock market.
Which 5G stocks shall I watch right now?
Let’s get straight to the point (we know why you’re really here): which 5G stocks should you be keeping a beady eye on? Whether you’re trading physical stocks or speculating with CFDs, the following stocks are worth watching:
- T-Mobile US (NASDAQ: TMUS). T-Mobile is one of the largest US wireless network operators along with AT&T and Verizon Communications. Controlled by Deutsche Telekom (DTEGY), its stock leads the industry to be ahead of its competitors. 2021 will probably be a peak investment year as T-Mobile is investing in a 5G network, among others.
- American Tower Corporation (NYSE: AMT). American Tower Corporation is based in the US and is a tower leasing company. Along with Qualcomm (QCOM), the stock was one of the first stocks that gained momentum when the 5G technology boomed. Tower companies stand to gain from 5G as more towers will be required to place the 5G antennas and infrastructure.
- Qualcomm (NASDAQ: QCOM). Qualcomm is one of the largest modem and mobile processor vendors that benefited from the 5G upgrade cycle. The US company is regarded as a 5G wireless technology leader and has already taken place in the 5G market with proven performance.
- Ericsson (NASDAQ: ERIC). Ericsson is one of the most renowned telecommunications and networking companies worldwide. Wireless telecommunication providers such as Ericsson are making strategic investments in 5G. As the 5G networks expand, Ericsson will likely witness robust demand. The company announced an increase of 13% in year-on-year adjusted sales for the last financial year, driven mainly by 5G.
- Apple (NASDAQ: AAPL) – The smartphone giant has entered the 5G smartphone era on the right foot. Apple isn’t always the first to bring new tech into smartphones. However, the iPhone 12 granted Apple users access to the latest wireless technology and ranked its stock among the top 5G stocks.
Keep in mind that while companies building and supplying 5G networks right now are hot, in the future, a vast number of industries will benefit from 5G. From internet and cloud-computing firms to carmakers and smart device makers, they will all enter the race and capture long-term value. So, keep your eyes open to find the right trading opportunity for you.
It appears that the 5G market’s momentum is expected to last for a long time to come.
Want to freshen up your stock trading ABCs? Beginner’s Guide to Stocks is the right place to visit.
Despoina Fouska is a content writer in the FinTech industry, a coffee addict and enjoys outdoor movie nights. Despoina holds a Bachelor’s in Political Science and a Master’s degree in Journalism.
Disclaimer: Eurotrader doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information provided here, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. We advise any readers of this content to seek their own advice.