7 Big 5G Stocks to Buy for the Hyperconnected Future

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5G stocks - 7 Big 5G Stocks to Buy for the Hyperconnected Future

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The 5G revolution is here, and that means it’s time to buy 5G stocks.

You see, 5G isn’t just a “level up” from 4G and LTE connectivity. It’s a whole new ball game. 5G will be 100 times faster than 4G. It will decrease end-to-end latency by 10-fold. And it will increase network traffic capacity by 100x.

In other words, going from 4G to 5G is like going from horses to cars, or from hot air balloons to airplanes. It’s a once-in-a-life-time transition, which — much like the transition to cars and airplanes did — will open up a world of infinite possibilities.

Self-driving cars. Immersive reality. Edge computing. Connected factories. Advanced robotics.

All of it will be made possible because of 5G.

That’s why Qualcomm (NASDAQ:QCOM) — one of the leaders in the 5G revolution — sees 5G unlocking $13.2 trillion in global economic output by 2035.

Needless to say, this is a once-in-a-lifetime investment revolution that you don’t want to miss.

With that in mind, here are the seven best 5G stocks to buy for big long-term gains:

  • Inseego (NASDAQ:INSG)
  • Nvidia (NASDAQ:NVDA)
  • Boingo (NASDAQ:WIFI)
  • Lumentum (NASDAQ:LITE)
  • Crown Castle (NYSE:CCI)
  • Axcelis (NASDAQ:ACLS)
  • Ceragon (NASDAQ:CRNT)

Here’s a closer look at what makes each of these among the best to stocks to invest in to take advantage of the 5G catalyst.

Big 5G Stocks for the Future: Inseego (INSG)

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One of the most promising small-cap 5G stocks in the market is Inseego.

Thanks to 5G technology, we are entering the era of Fixed Wireless Access (FWA) routers and mobile hotspot devices — the sum of which will allow offices and homes of all shapes and sizes to connect to the internet without needing any cords.

The emergence of this reality is creating elevated demand for 5G FWA routers and mobile hotspot devices.

Inseego, a $1.2 billion telecom infrastructure company, is a best-in-breed provider of those routers and devices. It should be no surprise, then, that the company grew revenues by 17% in the first quarter of 2020, or that management is guiding for first-half 2020 revenues to be up more than 28%.

That’s just the tip of the iceberg.

Over the next several years, consumers all across the globe will replace their internet coaxial cables, with 5G FWA routers and/or 5G mobile hotspot devices. Inseego will leverage its early lead and big-name partnerships to become the de-facto global supplier of those devices.

Inseego’s revenues will soar. So will profits. And the price of INSG stock.

Nvidia (NVDA)

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Next-generation GPU maker Nvidia stands to benefit in a big way from the global standardization of 5G for one very big reason: it will significantly advance many of the company’s end-markets, specifically self-driving.

Thanks to its breakthroughs in speed, latency and network capacity, 5G will enable significant advancements in things like edge computing, real-time automation and advanced robotics. Naturally, this will advance and grow the IoT, cloud and gaming industries, all of which are built on the back of Nvidia’s GPUs.

Most exciting, however, is that 5G-led advancements in edge computing will significantly advance self-driving from test-and-concept phase, to application-and-reality phase. This is a potentially huge market, and it, too, is built on the back of Nvidia GPUs.

As such, Nvidia — one of the market’s most exciting growth stocks — also doubles as one of the market’s most exciting 5G stocks.

Boingo (WIFI)

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Boingo is one of the best 5G stocks to buy because the company is helping fix 5G’s biggest problem: it’s inability to work efficiently indoors.

Broadly, America’s biggest wireless services providers — like Verizon (NYSE:VZ) and AT&T (NYSE:T) — have built their 5G networks using millimeter wave spectrum, since testing has shown that millimeter waves enable lightening quick over-the-air transmissions.

But millimeter waves also have really poor propagation properties, as such, 5G millimeter waves have trouble penetrating buildings. That’s a big problem. Americans spend 90% of their day inside their homes or offices. If 5G can’t work effectively indoors, then what good is it?

Helping to solve this problem is Boingo.

As one of the largest providers of indoor wireless networks in the world, Boingo is expert at using things like distributed antenna systems to optimize indoor wireless reception. The company plans to leverage this expertise to help 5G effectively work indoors.

As such, increasing 5G coverage over the next few years will be accompanied by increasing demand for Boingo’s services, which will lead to a spike in the company’s revenues, profits and the WIFI stock price.

Lumentum (LITE)

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Of course, a list of 5G stocks to buy would be incomplete without a fiber optics stock, and the fiber optics stock that looks best positioned to benefit from the 5G boom is Lumentum.

Long story short, the huge advancements that 5G promises in speed and capacity are only possible if the infrastructure supporting wireless communications gets a huge upgrade, too. This infrastructure — commonly dubbed the mobile backhaul — is mostly comprised of fiber optic cables that connect cellular base stations to the core network.

In order for those connections to be lightening fast, the world is going to need a lot more — and newer — fiber optic cables. Consequently, global demand for fiber should explode higher over the next few years as 5G coverage becomes globally ubiquitous.

Lumentum is at the forefront of this market, providing best-in-breed 5G fiber optics equipment that should see soaring demand over the next several years.

Against the backdrop of that soaring demand, LITE stock should power way higher.

Crown Castle (CCI)

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Another necessary infrastructure component of the 5G revolution is the deployment of small cells across cities and towns everywhere, and this reality makes Crown Castle one of the best 5G stocks to buy.

As mentioned earlier, 5G will employ ultra-fast, low-latency millimeter waves with poor propagation properties. As a result of those poor propagation properties, these waves don’t travel very far. Only about 250 feet. So, in order to provide seamless and continuous connectivity with 5G millimeter waves, telecom infrastructure companies are being forced to switch from big cell towers to small cell sites, which are basically just miniature towers that act as radios to transmit and receive signals in a small area.

Because they are so small, these small cells can be — and, indeed, are being — deployed on street corners across the world.

Who deploys these small cells?

Cell tower companies like Crown Castle.

Consequently, as 5G becomes globally ubiquitous, small cell deployment everywhere will accelerate dramatically. Crown Castle’s growth trajectory will meaningfully improve. CCI stock will shoot higher.

Axcelis (ACLS)

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When it comes to the 5G revolution, there are a lot of things going on behind the scenes to make this next-gen technology work.

One of those things is called ion implantation.

An exceptionally complex and highly technical process, ion implantation broadly involves firing a beam of ions into a semiconductor chip to improve the chip’s electric current flow, thereby enabling the chip to do things faster.

It has been around since the 1970s. But efficient, advanced ion implantation is fundamental and mission-critical to the 5G revolution, because in order to unlock the 100X boost in speed that 5G promises, 5G devices must rely on semiconductor chips with optimal electric current flow, which is achieved only through advanced ion implantation.

To that end, demand for efficient, advanced ion implantation solutions will soar over the next five years.

That’s great news for Axcelis, the $950 million specialized semiconductor company widely known as the best-in-breed provider of efficient ion implantation solutions.

As such, demand for the company’s highly specialized services will increase dramatically in 2020-25. As it does, this small-cap 5G stock could soar.

Ceragon (CRNT)

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Last, but certainly not least, on this list of 5G stocks for the future is Ceragon.

As mentioned earlier, the emergence of the 5G revolution will be preceded by a massive upgrade of the world’s mobile backhaul. Part of that upgrade will include upgrading existing fiber optic cables, or what’s referred to as “wired backhaul.” Another part will include upgrading the “wireless backhaul” part of the market, which leverages microwaves and radio waves to transmit signals between different access points.

As such, demand for both next-gen wired and wireless backhaul solutions will grow exponentially in the coming years.

To play the wired backhaul demand surge, buy Lumentum stock. To play the wireless backhaul surge, buy CRNT stock.

Ceragon is a long-time leader in the wireless hauling market. The company is successfully building on its leadership and expertise in this market to develop best-in-breed 5G wireless backhaul solutions. Demand for these solutions should grow exponentially in the coming years. Plus, the company has a huge fixed cost base. That fixed cost base will enable significant profit margin expansion as revenues soar in the early 2020s.

Ultimately, Ceragon should be able to turn 5G tailwinds into super-charged profit growth, which should drive CRNT stock way higher.

Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world’s top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/7-big-5g-stocks-to-buy-for-the-hyperconnected-future/.

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