3 Trending 5G Stocks To Watch In The Stock Market Now
With investors pivoting back towards the tech industry now, 5G stocks could be in the spotlight again. After all, this part of the stock market would represent an upcoming field in the telecom market now. In fact, some would argue that it is the new frontier of the wireless communication world today. Now, to briefly explain, upgrading major wireless networks with 5G tech brings numerous benefits. The most notable among them would be greater connection speeds, clearer signals, and increased data carrying capacities. Why is this important? Well, the tech essentially facilitates much larger and faster data transfer. In doing so, it significantly expands the capabilities of emerging tech fields such as the Internet of Things tech to autonomous vehicles.
Given the enabling role of 5G in the tech world today, I could see investors eyeing the top 5G stocks. For one thing, there are plenty of entry points into the industry now. Firstly, you have telecom providers like AT&T (NYSE: T) that bring 5G services directly to consumers. Not only do they serve consumers, but they are also actively bolstering the accessibility of 5G nationwide. Secondly, we could also look towards 5G component manufacturers such as Qorvo (NASDAQ: QRVO). This semiconductor company designs the parts needed to support and employ 5G across numerous settings. Thirdly, there is also a wide variety of consumer electronic names selling the necessary hardware, allowing consumers to make the most of 5G connections.
By and large, as global 5G networks continue to expand, general adoption would likely follow suit. Understandably, there would be some investors looking for the best 5G stocks in the stock market today because of this. Should you be one of them, here are three up-and-coming 5G stocks to know now.
Best 5G Stocks To Buy [Or Sell] Right Now
- Apple Inc. (NASDAQ: AAPL)
- Skyworks Solutions Inc. (NASDAQ: SWKS)
- T-Mobile US Inc. (NASDAQ: TMUS)
Apple Inc.
First up, we have consumer electronic industry titan Apple Inc. No doubt, with Apple being a household name, it would be among the leading players in the 5G market today. For the most part, this would be thanks to the popularity of its flagship iPhone product line today. Now, smartphones are one of, if not the most common means for a consumer to access 5G networks. As a result, AAPL stock would be among the top 5G stocks for investors to consider in the market today.
This would also be the case with Apple’s latest iPhone iteration, the iPhone 12. According to research firm Strategy Analytics, Apple sold over 40.4 million units of its 5G-enabled smartphones in the first quarter of 2021. In the same report, its closest runner-up was Chinese smartphone manufacturer OPPO at 21.5 million. If anything, this shows Apple’s current dominance in the 5G smartphone market. Moreover, the company appears aware of this and is looking to provide the best 5G experience for its users moving forward. Earlier this month, Apple put up a post on its developer blog encouraging app designers to up their “5G game”. The company cites the numerous applications for 5G networking across video streaming, social networking, and online gaming today.
Overall, Apple does not seem to be resting on its laurels just yet. By leveraging 5G tech, the company is looking to further refine its users’ experiences. In turn, this would likely bolster its strong following in the consumer tech industry further. Given all of this, would you consider AAPL stock a 5G stock to own now?
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Skyworks Solutions Inc.
Another company to know in the 5G space now would be Skyworks Solutions Inc. In brief, the California-based company manufactures semiconductors. The likes of which are used in radio frequency and mobile communications systems. Through its innovative analog semiconductors, Skyworks helps connect people, places, and tech across numerous environments. Some of the company’s core end markets include but are not limited to the aerospace, automotive, medical, and military industries. Considering how crucial Skyworks’ offerings are in the 5G world, investors could be keen on SWKS stock now.
Evidently, analysts from investment firms Barclays (NYSE: BCS) and Citi (NYSE: C) appear bullish on SWKS stock this week. On one hand, Barclays raised its price target on the company’s shares from $185 to $200. The firm believes that Skyworks is “positioned for raises into earnings” and will “likely outperform into the fall”. On the other hand, analysts over at Citi believe that Skyworks stands to benefit from the eventual uptick in semiconductor chip sales moving forward. Subsequently, SWKS stock is now up by over 6% just this week.
Positive analyst coverage aside, Skyworks is also hard at work on the operational front as well. Just last week, the company provided an update on its current work with semiconductor industry peer, Xilinx (NASDAQ: XLNX). In detail, the duo “demonstrated compliance with 3GPP linearity and bandwidth requirements for C-band signals.” The crucial part of this update would be the C-band signals. According to Skyworks senior VP Yusuf Jamal, “The C-band is a unique and important piece of the 5G landscape.” Jamal also highlights that this demo shows the readiness and maturity of this collaborative 5G solution. All in all, could we be looking at exciting times ahead for SWKS stock?
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T-Mobile US Inc.
Last but not least, we will be looking at leading U.S. telecom service provider, T-Mobile. In short, T-Mobile provides U.S. consumers with advanced 4G and 5G wireless connectivity services. Because of this, T-Mobile would stand to benefit from major 5G up-cycles moving forward. Considering that consumer spending power has risen thanks to recent stimulus aid, this could be the case. Likewise, it would not surprise me to see investors adding TMUS stock to their watchlists for the same reasons.
In its latest quarter fiscal report posted last month, T-Mobile reported solid figures. Particularly, the company posted massive year-over-year surges of 77% in total revenue and 500% in cash on hand. According to CEO Mike Sievert, the company’s network leadership continues to fuel customer momentum, deliver merging synergies, and expand T-Mobile’s addressable markets. Cumulatively, all of this has and continues to serve as key growth drivers for the company now. Additionally, T-Mobile also appears confident regarding its current lead in the industry, raising its fiscal year guidance.
If all that wasn’t enough, the company is also bolstering its services for existing customers. As of this week, T-Mobile is currently offering cybersecurity and scam protection plans for customers’ devices. With consumers surfing the web on their mobile devices more than ever, this is a strategic play by T-Mobile. All things considered, will you be investing in TMUS stock?
