This article was originally published on ETFTrends.com.
Some market observers believe the rally in chip stocks can continue, particularly if investors remain enthusiastic about 5G. 5G technology will use a higher frequency band versus the current 4G technology standard, resulting in faster transmission of data.
Being able to transmit copious amounts of data at a faster rate is certainly of benefit for wireless companies and their users, but 5G could be a major disruptor in various industries. Before this occurs, however, the infrastructure to accommodate this enhanced technology must be in place.
“And if investors stay optimistic on the prospect of 5G, the fifth generation of wireless connectivity that is expected to boost overall demand for semiconductors, the group could have even more long-term upside, BK Asset Management's Boris Schlossberg said in an interview with CNBC.
5G technology is on the horizon, which is expected to revolutionize the transmission of data, leading to smart cities that thrive on digital application.
What's Next for 5G?
As the demand for faster internet speeds increase, exponential growth is expected for the 5G infrastructure market. Furthermore, 5G capability allows greater scalability so it can accommodate more growth over time as needed.
“The market is making a big bet on 5G and data sensor continuation," Schlossberg said in the CNBC interview. “I think if that bet comes through, it's a completely different ballgame. [The] internet of things, and chips becoming essentially embedded in everything that we do, could really create a much wider, bigger demand than we can imagine. So they could bust through those highs if that's indeed going to be the story of '19 to '20.”
The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized soon. Nonetheless, it presents an opportunity that could see early adopters reap the benefits, especially if the technology is utilized to its fullest capabilities.
For more information on the tech sector, visit our technology category.
Have you signed up for the ETF Trends Virtual Summit on Wednesday, April 17? It's complimentary for financial advisors (earn up to 5 CE Credits)! Register now to learn about inside the disruptive technology revolution. POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
- SPY ETF Quote
- VOO ETF Quote
- QQQ ETF Quote
- VTI ETF Quote
- JNUG ETF Quote
- Top 34 Gold ETFs
- Top 34 Oil ETFs
- Top 57 Financials ETFs
- Using Merger Arbitrage as a Hedge Against Market Volatility
- A Better Way to Determine Risk Exposure for Growth ETF Investors
- Report Findings Highlight Fake Bitcoin Trading on Unregulated Exchanges
- How to Manage A Mature Bull Market With Macro-Themed ETF Strategies
- In the Know: Building a Low Cost, Defensive Portfolio