Chances are, you have likely heard of 5G being the next generation of wireless connectivity tech. If anything, this would make 5G stocks among the upcoming names in the stock market today. Now, for starters, 5G provides significantly faster download speeds and greater overall connectivity. Accordingly, this would appeal to both organizations, consumers, and investors alike. Not only does 5G enable more efficient workflows, but it would also expand the capabilities of today’s software systems. Because of all this, I could see investors looking out for the best 5G stocks in the stock market now.
For instance, we could look at how major players in the consumer tech market are aggressively bolstering their 5G offerings. On one hand, Apple (NASDAQ: AAPL) is reportedly looking to make its entire next-gen iPhone 13 product line 5G-enabled. Given Apple’s presence in the global smartphone industry today, this could result in wider adoption of 5G tech. At the same time, industrial companies continue to turn towards telecom service providers like AT&T (NYSE: T) to optimize operations. As of yesterday, General Motors (NYSE: GM) is now working with the company to develop 5G-enabled vehicles by 2023.
Like it or not, the applications for 5G tech in our world today continue to grow. From handheld devices to even the cars we will drive, this is apparent. Not to mention, the recent $1 trillion infrastructure bill will also see about $65 billion in funding towards improving internet services nationwide. Safe to say, 5G infrastructure would be a crucial aspect of this endeavor as well. Given all of the excitement in the 5G industry, could one of these top 5G stocks be worth watching now?Best 5G Stocks To Buy [Or Sell] Right Now
- Skyworks Solutions Inc. (NASDAQ: SWKS)
- Verizon Communications Inc. (NYSE: VZ)
- Qualcomm Inc. (NASDAQ: QCOM)
To begin with, we will be taking a look at Skyworks Solutions. In brief, the California-based company primarily specializes in semiconductor manufacturing. Among its core end markets are the radio frequency, aerospace, industrial, medical, and mobile communication systems industries. For a sense of scale, Skyworks currently has operations throughout Asia, Europe, and North America. Given the importance of semiconductor chips in the 5G and broader tech industries today, SWKS stock could be on tech investors’ radars now. In fact, the company’s shares are now sitting on gains of over 140% since its pandemic era low.
While all this is great, would SWKS be a buy right now? For one thing, CNBC’s Jim Cramer seems to believe so. In the Lightning Round segment of his show, Cramer highlights Skyworks as a buy, citing the company’s recent acquisition. This would relate to Skyworks’ deal with Silicon Laboratories (NASDAQ: SLAB) last month. Through the deal, Skyworks is now acquiring Silicon’s “Infrastructure & Automotive” business for $2.75 billion. According to CEO Liam Griffin, this would serve to accelerate Skyworks’ growth in the booming electric vehicle industry now.
On top of all that, the company also saw green across the board in its latest quarter fiscal. Late last month, Skyworks reportedly brought in a total revenue of $1.12 billion for the quarter. This would mark a solid 51% year-over-year increase. Additionally, the company also saw massive year-over-year surges of 160% in net income and 162% in earnings per share. With all this in mind, will you be adding SWKS stock to your portfolio?Source: TD Ameritrade TOS
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Following that, we have Verizon Communications. For the most part, it is a prominent player in the U.S. telecom market today. To date, it is one of the largest wireless carriers operating in the region. According to Verizon, the company now caters to over 121 million subscribers. With Verizon playing a crucial role in bringing 5G tech to consumers, VZ stock would be a viable 5G stock now. Would this give it more room to run moving forward?
To help answer this, we could take a look at its recent financials. Just last month, Verizon reported solid figures across the board in its second-quarter fiscal. In it, the company posted an earnings per share of $1.40 on revenue of $33.76 billion. Notably, Verizon also reported that its consumer segment raked in a total revenue of $23.5 billion for the quarter, exceeding pre-pandemic levels. Arguably, this could mean that demand for the company’s offerings continues to persist throughout the pandemic. As a result, Verizon is raising guidance on both its earnings per share and wireless service revenue for the year.
If that wasn’t enough, Verizon does not seem to be slowing down on the operational front anytime soon. As of last week, the company is now working with Equinix (NASDAQ: EQIX) to expand its global automation capabilities. In detail, this would see Verizon build on its Software-Defined Interconnect (SDI) solution. The likes of which enable both global enterprise and public sector clients to connect to relevant cloud networks. According to Verizon SVP, Massimo Peselli, the current move would further optimize the cloud migration process for Verizon’s customers. Because of all this, would you consider VZ stock a top buy now?Source: TD Ameritrade TOS Qualcomm Inc.
Another company to know in the 5G industry now would be Qualcomm. Generally, most would be familiar with the company’s offerings in the smartphone market now. This would be the case as its chips serve as core components in some of the most widely used smartphones today. Safe to say, Qualcomm is one of, if not the leading name in the wireless tech industry today. As such, it currently caters to a vast array of industries that rely on its 5G-enabling chips.
Seeing as QCOM stock has mostly been trading sideways this year, would now be a good time for investors to jump on? While that remains to be seen, Qualcomm has not been sitting idly by amidst the current 5G hype. Just this week, the company unveiled a drone platform that offers both 5G and artificial intelligence (AI) capabilities. This would mark an industry first. According to Qualcomm, its Qualcomm Flight platform is ready to provide clients with premium computing, camera, computer vision, and connectivity features in an all-in-one package.
Moreover, the company is also looking to acquire Veoneer (NYSE: VNE), a Swedish automotive tech firm. Should things go as planned, Qualcomm could significantly expand its current automotive solutions. With Qualcomm kicking into high gear now, some would argue that QCOM stock has more room for growth moving forward. Would you agree?Source: TD Ameritrade TOS