As we navigate the seas of the burgeoning 5G sector, the waves teem with multi-bagger investments, vying to dominate the niche. However, pinpointing the best 5G stocks to buy now requires prudence and a sense of direction. The world of technology, and 5G in particular, offers immense growth potential, so savvy investors must load up investments on the 5G sphere.
Leading 5G stocks are fueled by critical drivers, including the increasing embracement of virtual network architecture and the unquenchable thirst for data. However, the influence of 5G doesn’t stop there; it ripples through multiple industries, including healthcare, automotive, manufacturing, and other tech verticals. The 5G market, valued at a whopping $5.53 billion in 2020, is expected to morph into an astounding behemoth of $667.9 billion by 2026.
That said, investors should focus on these top 5G investments and explore a landscape buzzing with potential and promise.
American Tower (AMT)
After a rocky start to the year due to telecom mergers diluting its domestic customer base, American Tower (NYSE:AMT) is taking strides in the right direction. Moreover, by shedding unprofitable overseas assets, including those in India, and focusing on expanding connectivity, AMT strategically positions itself for long-term success in the rapidly expanding 5G and Internet of Things (IoT) market.
With an impressive empire of about 226,000 cell towers, AMT stands to benefit from burgeoning 5G infrastructure demand. Additionally, this growth is driven by carrier network investments and robust organic expansion in the North American region.
In fact, the second-quarter results reflect this positive shift. AMT’s second-quarter average funds from operations of $2.46 and revenue growth of 3.6% year-over-year to $2.77 billion exceeded expectations. Moreover, the 4.4% increase in property revenue to $2.7 billion further underscores AMT’s renewed commitment to its core operations. Furthermore, AMT yields an impressive 3.4%, with 10 years of dividend growth.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has been making strategic moves into the 5G realm, leveraging its Amazon Web Services (AWS) division to lay a robust groundwork. Its Private 5G platform, layered with a resilient cloud network, is positioned incredibly well to thrive as the private 5G network market swells alongside the broader 5G market expansion. This forward-looking strategy underlines a promising trajectory for long-term expansion, a potential boon for long-term investors.
Moreover, Amazon is expanding its 5G footprint through Project Kuiper. This initiative aims at deploying a satellite constellation for high-speed, low-latency broadband, primarily in rural areas. Amazon aims to provide backhaul solutions for wireless carriers delivering both LTE and 5G, showcasing its determination to seize powerful 5G opportunities. This two-fold strategy is a testament to Amazon’s powerful resolve to capitalize on the 5G technology wave.
Marvell Technologies (MRVL)
Marvell Technologies (NASDAQ:MRVL) has effectively carved a niche as a formidable data infrastructure semiconductor solutions provider, laying the groundwork for high-speed 5G connectivity. Its critical role in supporting the fast-evolving 5G wireless landscape makes MRVL stock a must-buy for those looking for 5G exposure.
However, Marvell’s prowess doesn’t stop at 5G. Its innovative arsenal extends to cutting-edge fields, including AI, drones and cloud computing. Moreover, its multi-layered engagement with interconnected, high-growth domains cements its position in the 5G realm.
Additionally, Marvell’s concerted efforts in building AI technology will enhance and boost its 5G connectivity solutions, solidifying its innovative edge in telecommunications. In fact, according to its management’s forecast in late May, AI revenue is expected to double in 2023 to at least $400 million and then again to $800 million by fiscal 2024.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
