5 5G Stocks With Major Growth Potential Ahead
Overall, “5G” could be one of hottest buzzwords of the year. And that, in turn, makes 5G stocks a major topic of discussion.
After all, according to Cowen & Co. analyst Colby Synesael, it will “usher in this revolution and have a ‘game-changing’ impact on society. Certainly, there are already several technologies including artificial intelligence, robotics, the Internet of Things, quantum computing, etc. that have already impacted our lives a great deal.”
Providing unimaginable speeds, it could disrupt just about everything around us. Granted, there are health concerns regarding Electromagnetic Radiation (EMR), but 5G is still coming.
However, it’s not just 5G making headlines. The fight is on for 6G dominance, too.
Sure, 6G is years from reality — but it could provide speeds of up to 100 times faster than 5G can provide. In fact, according to The Bulletin’s Shirly Zhao, Scott Moritz, and Thomas Seal, it could “deliver the kind of technology that’s long been the stuff of science fiction, from real-time holograms to flying taxis and internet-connected human bodies and brains.”
China, for one, is already moving towards 6G. Reportedly, it launched a satellite in late 2020 to test airwaves for potential 6G technology. Who knows? Perhaps we’ll see 10G at some point.
So, with 5G — even 6G — on its way, there are a few top companies that could benefit in a big way. And they’re ones for potential investors to keep an eye on. They are:
- Inseego Corp. (NASDAQ:INSG)
- Skyworks Solutions (NASDAQ:SWKS)
- American Tower Corp. (NYSE:AMT)
- Defiance 5G Next Gen Connectivity ETF (NYSE:FIVG)
- Global X Internet of Things ETF (NASDAQ:SNSR)
Now, let’s dive in and take a closer look at each one.
Hot 5G Stocks: Inseego Corp. (INSG)
INSG stock has been incredibly explosive. Since bottoming out in November around $8.27, INSG exploded to a 52-week high of $21.93 in late January. However, this could be the start of a much bigger move.
Just recently, the company announced a new deal with telecom operators, such as T-Mobile (NASDAQ:TMUS). In December, Inseego announced that T-Mobile selected Inseego’s 5G MiFi M2000 for its first mobile hotspot.
“We are extremely proud to be the trusted choice for T-Mobile with their first-ever 5G mobile hotspot, bringing breakthrough performance to over 100 million enterprise and consumer customers on the Un-carrier’s nationwide 5G network. In addition, this launch enables T-Mobile to provide a secure, integrated solution for their enterprise customers with Inseego Connect cloud management software,” Inseego Chairman and CEO Dan Mondor said.
Furthermore, Inseego also announced a 5G contract in Japan — partnering with Grape One, a subsidiary of Sumitomo. And it also signed a deal with Vodafone Qatar, with all of this news coming within the same week.
Skyworks Solutions (SWKS)
Like Inseego, Skyworks has been just as explosive. Since November, the stock popped from $135 to a recent high of $195.82. However, this may only be the start of a bigger move. And from here, I’d like to see SWKS stock around $210, near-term. As wireless companies switch to 5G transmission, SWKS stock has only seen orders for semiconductor chip components increase.
Its technology is in the Apple 5G iPhone, too. That’s part of the reason why Raymond James analyst Chris Caso is also bullish on the stock.
“Looking into the fall launch, we’re confident that [Skyworks] will maintain and grow their Apple content (which has been the subject of some debate), and we expect a benefit from improving iPhone units as well as the roll off legacy phones and moving richer content 5G phones down the iPhone stack,” he said, as quoted by Barron’s.
Hot 5G Stocks: American Tower Corp. (AMT)
While the AMT stock chart has seen better days, the company is likely to benefit from 5G, too.
When 4G was introduce, about 200,000 cell towers were needed for the technology. With 5G, another 300,000 towers will need to be installed. In addition, according to the company, “We expect continued strong demand for our macro towers as a result of 4G and 5G mobile network deployments, with additional optionality from other complementary real estate solutions.”
Defiance 5G Next Gen Connectivity ETF (FIVG)
FIVG offers investors low-cost access to companies engaged in the research & development or commercialization of systems and materials used in 5G communications. Some of its top holdings include Ericsson (NASDAQ:ERIC), Nokia (NYSE:NOK), Qualcomm (NASDAQ:QCOM), Analog Devices (NASDAQ:ADI) and Xilinx (NASDAQ:XLNX).
That said, you can have all of this for less than $37 at the moment. Since bottoming out in September around $28, the ETF ran to a recent high of $36.70. From here, I’d like to see it closer to $50 as the 5G story heats up.
Hot 5G Stocks: Global X Internet of Things ETF (SNSR)
The SNSR ETF invests in companies that are likely to benefit from the broad adoption of Internet of Things (IoT), as enabled with 5G infrastructure and fiber optics. At just $35.50 per share, the ETF offers diversification among top stocks such as Skyworks Solutions, Garmin Ltd. (NASDAQ:GRMN), ADT Inc. (NYSE:ADT), STMicroelectronics (NYSE:STM) and Sensata Technologies (NYSE:ST).
Since bottoming out in Nov. around $26, the ETF ran to a recent high of $35.64. From here, I’d like to see it closer to $50 PER share on the 5G and even 6G boom.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A contributor to InvestorPlace.com, Ian Cooper has been analyzing stocks and options for web-based advisories since 1999.