4 Top 5G Stocks To Watch Right Now
5G stocks may be a relatively new theme to the stock market but smart investors are already keeping tabs on the industry. While it may be true that 5G is rapidly expanding, it may not be mainstream until a few more years. With that in mind, could this imply that the growth potential is still abundant in this industry? So now begs the question, how is 5G better than 4G? It is just an upgrade across the board. 5G is significantly faster, more capacity, and significantly lower latency than 4G. Furthermore, it is a unified platform that supports new services such as mission-critical communications and the massive Internet of Things (IoT).
We can see telecommunications companies such as Verizon Communications Inc. (NYSE: VZ) making moves to ensure relevance in the 5G space. The company announced that its customers can trade in an old phone and get a new 5G phone for free with select plans. This goes to show how competitive the 5G market is and companies are going all out to stay ahead. Another 5G company that has been making waves recently is Nvidia (NASDAQ: NVDA). In brief, Nvidia has been advancing its AI-on-5G unified platform to accelerate the digital transformation of enterprises across all industries. Given how dependent we are on the internet, speed and reliability are everything. So, let us take a look at some of the top 5G stocks in the stock market today.
Best 5G Stocks To Buy [Or Sell] Right Now
QUALCOMM, Inc (NASDAQ: QCOM)
Skyworks Solutions Inc (NASDAQ: SWKS)
T-Mobile US Inc (NASDAQ: TMUS)
Marvell Technology Inc (NASDAQ: MRVL)
Let us start the list with the wireless technology company, Qualcomm. Essentially, it engages in the development, launch, and expansion of technologies like 5G. The likes of which are used in mobile devices and other wireless products. Besides that, its technology and products are also used in the automotive, computing, IoT, and networking industries. QCOM stock has climbed by almost 45% over the past year.
According to an article in The Telegraph last week, the company appears to be interested in investing in Arm Holdings. This is in the event if the proposed acquisition by NVIDIA Corporation (NASDAQ: NVDA) does not go through. This is because Arm Holdings’ technology is widely used in the world’s premium smartphones. So, whichever company gains access to its tech may be primed to dominate the industry moving forward.
During the second quarter, the company reported an impressive earnings report. Its revenue came in at $7.93 billion, an increase of 52% year-over-year. Furthermore, its net income skyrocketed to $1.76 billion, a 276% increase compared to a year ago. It is also noteworthy that the company acquired the world-class CPU and technology design company, NUVIA for $1.4 billion in the same quarter. Given the exciting development surrounding the company, would you consider buying QCOM stock?
Skyworks Solutions Inc
Another company that contributes to 5G technology would be Skyworks. The company designs, develops, manufactures, and markets semiconductor products. Its Sky5® is a highly flexible, customizable solution that meets the challenges of 5G wireless communications. In practice, Skyworks employs its wares across multiple core end markets. These include, but are not limited to the aerospace, automotive, medical, military, and consumer tech industries. Understandably, as the company’s portfolio addresses a wide array of markets, investors could be eyeing SWKS stock.
Back in April, the company entered a definitive agreement with Silicon Laboratories Inc. (NASDAQ: SLAB), a leading provider of silicon, software, and solutions. Skyworks will acquire the infrastructure & automotive business of Silicon Labs in a $2.75 billion all-cash deal. This acquisition is significant as it could accelerate and bolster Skyworks’ expansion into the automotive industry. According to the company, the deal puts Skyworks in a position to “address a combined market opportunity approaching $20 billion annually.“
In its second-quarter earnings report, Skyworks delivered record revenue of $1.17 billion, up by 53% year-over-year. Following that, the company posted earnings per share of $1.95, an increase of 84% year-over-year. This further solidifies the company’s position across a rapidly expanding set of end markets and customers. Amidst these exciting times for Skyworks, will you be investing in SWKS stock?
T-Mobile US Inc
Next, we have the mobile communications services company, T-Mobile. For those unfamiliar with the company, it offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. Furthermore, it also provides wireless devices which include smartphones, tablets, and other communication devices. The company’s stock has been steadily rising over the past year. It has climbed by over 35% within one year.
Last Thursday, T-Mobile announced an upgrade to its groundbreaking Connecting Heroes program. First responder agencies are assured unmatched network access to help their critical communications. If the network is too crowded during an emergency, non-emergency traffic drops to make way for first responders’ critical communications. Despite it being a free service, some could argue that it would attract public attention and also illustrate the company’s confidence in its network speed.
Furthermore, the OnePlus Nord N200 5G is coming to T-Mobile and Metro by T-Mobile. In fact, it is the only wireless provider where customers can get this new device. T-Mobile is clearly promoting the use of 5G phones as much as possible. After all, the majority of Americans could not enjoy the 5G experience as they do not possess a 5G device. All things considered, would TMUS stock make its way to your portfolio?
Marvell Technology Inc
Last on our list, we have Marvell. The company is a data infrastructure semiconductor solutions provider. Marvell’s market position in wireless networking technology has grown with each successive generation of wireless standards. Today, Marvell-powered 3/4G solutions provide cellular coverage to over a billion people worldwide. From its 5G portfolio, Marvell offers complete silicon platforms that enable all aspects of the digital processing domain. MRVL stock has climbed by over 55% over the past year.
Earlier this month, Marvell introduced the industry’s first 1.6T (Terabits per second) Ethernet PHY with 100G PAM4 electrical inputs/outputs (I/Os) in 5nm. According to Marvell, the demand for increased bandwidth in cloud data centers to support massive data growth is driving the transition towards 1.6T in the Ethernet backbone. As it stands, this is the only solution that’s available in the market today to support the transition of the industry to 100G serial electrical signaling on high-density switches and optics. In a nutshell, Marvell’s latest innovation allows leaders in the cloud industry to operate at greater capacities.
Moreover, the company started the fiscal year on a strong note. Marvell completed the acquisition of Inphi Corporation in April, bolstering its 5G-focused portfolio further. In its first-quarter earnings report, the company reported revenue of $832 million, representing a growth of 20% year-over-year. CEO Matt Murphy also appears optimistic about Marvell’s future as he believes that this is the “beginning of a multi-year growth cycle.” So, would this make MRVL stock a top 5G stock to watch now?