Best 5G stocks to buy in 2021
From adverts by mobile phone companies to social media conspiracy theories, it is likely you have heard about 5G, though you may not have thought about investing in it before. Scroll down to see our list of the top five 5G stocks you can invest in.
What are the top 5G stocks to buy in 2021?
Our team of financial analysts have conducted extensive research to find the best 5G companies to invest in right now. Here is our list:
|#||Stock symbol||Company name|
|3||VZ||Verizon Communications Inc.|
|5||SWKS||Skyworks Solutions, Inc.|
To find out why these companies are on our list, scroll down to find out some more details about them.
1.) Nvidia Corporation (NASDAQ: NVDA)
Nvidia Corp. is a multinational tech company headquartered in California. It creates revenue through the design and sale of graphics processing units (GPUs) for professionals and gamers, as well as chip units for mobile devices and automobiles. It is one of the world’s largest 5G chip makers.
It has made it onto our list because, in recent years, it has moved to the forefront of 5G tech with the Nvidia Aerial. While the company’s share price had been steadily appreciating since it was founded in 1993, tapping into the growing 5G sector has massively accelerated growth.
With a market cap in excess of $350 billion and a promising 5G future, we feel that Nvidia Corp. provides a strong blend of value and growth. It is a compelling investment package that could gather momentum as 5G adoption increases. If you are interested in buying Nvidia shares, check out our detailed guide.
2.) Qualcomm, Inc. (NASDAQ: QCOM)
Also based in California, Qualcomm is a multinational tech company. It produces software and services for wireless technology, with a particular focus on semiconductors.
The main reason that Qualcomm has made our list is that it owns patents that are integral to various mobile communication standards, including 5G. This gives it a distinct advantage over the competition. Since its inception in 1985, its share price has grown steadily and it is now one of the top 5G companies to invest in.
Since becoming actively involved with 5G tech in the last few years, Qualcomm’s growth has accelerated, with revenue climbing upwards of $23 billion. Looking forward, this is a company that appears to have the foundations to remain at the forefront of the 5G sector; with a market cap that has swelled over $150 billion, Qualcomm appears well-positioned for more growth.
3.) Verizon Communications Inc. (NYSE: VZ)
Verizon is one of the world’s largest multinational communication technology companies. It is relatively young in comparison to its peers; however, since it was founded in 2000, its revenue has soared to well over $100 billion per annum.
Verizon’s recent innovations – the 5G Ultra Wideband network and 5G Nationwide – provide 5G connectivity for over 230 million people in over 2,700 cities, and this the main reason it has found a place on our list. The scale of Verizon’s operations is impressive, as is the company’s dividend yield of over 4%, which is abnormally high for the sector.
With a market cap of over $200 billion, moving forward, Verizon has the infrastructure and strategic partners in place to ensure it remains at the front of the pack. While it may not experience the same share price growth as some of its smaller competitors, it has all the credentials to be a consistent and strong 5G performer for years to come.
4.) Qorvo, Inc. (NASDAQ: QRVO)
Based in North Carolina, Qorvo provides cutting-edge radio frequency solutions for a variety of applications, including mobile devices, defence radar and communications.
Having been founded in 2015, the company is a relative baby, though its share price growth actually overshadows most of its peers. In fact, it is one of the fastest-growing 5G technology stocks. This growth is what has secured Qorvo’s spot on this list, as achieving revenue in excess of $3 billion per annum after just 6 years is no easy feat.
Looking to the future, it is clear that as a company in its infancy, Qorvo has some catching up to do in relation to strategic partners. However, with a successful business model of innovative products and fewer than 10,000 employees, this is a company that could easily scale up. While there is currently no dividend, the share price growth could be dramatic.
5.) Skyworks Solutions, Inc. (NASDAQ: SWKS)
Founded in 2002 and headquartered in California, Skyworks Solutions claims to lead the way in a new era of communications. It makes the technologies that allow 5G to function effectively, including high-performance analogue semiconductors.
The main reason Skyworks is on this list is because of the level of innovation it offers across numerous sectors. Far from focusing purely on mobile devices, it is also involved in the production of 5G technologies for the broader market including connected industrial equipment, video conferencing, touchless payment methods, and safety systems on automobiles.
In terms of its future investment outlook, Skyworks Solutions’ forward-thinking role in the technological advancement of the 5G sector could create substantial returns. In addition, if the company’s lofty ambition to ‘connect everyone and everything, all the time’ is anything to go by, its current market cap of over $30 billion could soon grow.
Where to buy the best 5G shares
The best place to buy 5G shares is a reliable broker with low fees. These are services that allow you to create an investment portfolio via an easy-to-use interface, and they are now even available in app form for added convenience. We have listed the best brokers to buy the top 5G stocks in the following table.
What is a 5G stock?
5G stocks are shares in companies that are involved in the development, construction, sale and/or operations of products supporting 5G networks: the fifth generation technology standard for broadband cellular networks.
Are 5G shares a good investment?
The potential of 5G is obvious. It enables extremely fast speeds; if you are near a 5G tower with your phone, you could download a full HD episode of a TV show in seconds. Moreover, with fewer towers needed and new technologies increasing use cases all the time, 5G has room to flourish. Moreover, many major companies have committed to forging a 5G future.
However, issues remain with upload speeds, battery drain and heat, and broadcast distance/building penetration: 5G does not travel as far or penetrate as effectively as 4G. In addition, there are alleged health risks from radiation. These are significant risk factors, though if 5G can overcome them, stocks of this type offer a compelling investment package.
Remember that any investment decision is entirely up to you. You should always take your time and conduct your own research before risking any capital. Moreover, while these companies are, in our opinion, the best 5G stocks to invest in, there are many other options you might want to consider. Check out the latest 5G news below to get an idea of what else is on offer.