This year provides a promising path forward for the hottest 5G stocks to buy. As the global rollout of 5G networks accelerates, investors seek to capitalize on this transformative wave. However, this market will certainly have its hiccups along the way, and picking the right companies will be crucial.
According to Grand View Research, the 5G services market will grow at a CAGR of 59.4% from 2023 to 2030. The convergence of artificial intelligence (AI), Internet of Things (IoT) and high-speed data connectivity will ultimately spur growth. With an acute focus on innovation, these three companies stand to benefit from the seamless integration of 5G technology.
Now, let’s explore the hottest 5G stocks to watch in 2024!
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is an American multinational semiconductor company headquartered in San Diego, California. It is at the forefront of the global transition from 4G to 5G telecommunications infrastructure.
Qualcomm spearheaded critical wireless communication ranging from 4G, 5G and CDMA 2000. Now, it is taking the leap to advance 5G to drive economic growth across industries. The company projects 5G CAPEX to eclipse $265 billion annually over the next 15 years.
Sales driven by a 5G network infrastructure are expected to contribute $13.1 trillion to the global economy by 2035. Additionally, Qualcomm is advancing its generative AI strategy with the release of Snapdragon X Elite. The revolutionary CPU is expected to run generative AI models 2X faster than its competition. While FY23 earnings results were disappointing, 2024 could be the year of redemption.
T-Mobile US (TMUS)
T-Mobile US (NASDAQ:TMUS) should be on your radar as one of the hottest 5G stocks to buy. Last year was transformative as the company delivered strong operational execution.
T-Mobile is one of the world leaders in 5G mobile infrastructure. It has built America’s largest and fastest 5G network. Now, with SoftBank (OTCMKTS:SFTBY) receiving $7.6 billion worth of TMUS stock, the Sprint acquisition can finally be a thing of the past.
The company’s operational excellence has been exemplified in its recent Q3 2023 financial results. Net income grew 322% year-over-year (YOY) to $2.1 billion. Earnings Per Share (EPS) also skyrocketed 355% YOY, with FCF nearly doubling to $4.0 billion. Additionally, T-Mobile bought back $14.7 billion worth of common stock. That represents the company’s ability to return cash to shareholders, making it one of the hottest 5G stocks to buy for 2024.
Cisco Systems (CSCO)
Cisco Systems (NASDAQ:CSCO) is making its case as one of the top 5G stocks to watch for 2024. Last year was certainly strong, and the company’s 5G network architecture can accelerate growth over the next decade.
Cisco offers private 5G offerings for various industries like manufacturing, warehouse logistics, energy and utilities. More recently, the company partnered with Wipro (NYSE:WIT), launching a 5G-as-a-service solution for enterprise customers. It also has Cisco Meraki, a 5G cloud wireless solution. The MG51 and MG51E offer lower latency, increased security and faster speed times with the ability to connect to a backup carrier in case of a primary carrier outage.
The 2023 fiscal year was a strong operation year for Cisco, as revenue was up 10% YOY to $57 billion. Operating leverage in FY23 reflected the company’s strong execution, gaining market share in AI, security and the cloud. With 5G and cloud security as a major tailwind for growth, 2024 could prove to be another strong year.
On the date of publication, Terel Miles 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.
