We’re now in the fifth-generation (5G) wireless internet era, a transformative technology that marks a new age of connectivity. Moreover, given the disruption it has caused and more to come, investing in 5G stocks becomes a no-brainer.
However, 5G stocks are taking a back seat to AI and other disruptive technologies. Especially with AI pushing the stock market to new heights last year, many consider that the 5G boom is over. Nevertheless, estimates point to substantial 5G wireless market growth from $30.13 billion in 2023 to $224.47 billion by 2032. Hence, it’s a massive opportunity for investors to pounce on 5G stocks positioned to benefit tremendously as the technology becomes more widely adopted.
Considering this, these three enterprises are deeply engaged in developing and deploying 5G technology. Moreover, these 5G stocks are set to gain immensely from its global adoption, boasting superb prospects for investors eager to capitalize on the future of innovation.
T-Mobile (TMUS)
T-Mobile (NASDAQ:TMUS) is the third-largest wireless carrier in the U.S., with over a 30% market share. Moreover, with its robust positioning in the telecommunications space, it has become a bellwether in the 5G realm. Its 5G service is often regarded as the premier choice among its peers.
Peter Osvaldik, T-Mobile’s executive vice president and chief financial officer, supports this view by highlighting how T-Mobile boasts at least a 40% market share in the top 100 markets. Also, recent surveys have affirmed its dominance in 5G coverage, roughly 54% nationwide.
Furthermore, TMUS stock has been a tremendous wealth compounder, returning more than 482% to its shareholders over the past decade. This mind-boggling statistic underscores the strength of its underlying business, which is marked by an industry-leading margin profile and enviable liquidity position.
Verizon Communications (VZ)
Verizon Communications (NYSE:VZ) is another top U.S. telecommunications company that continues to excel in the fiercely competitive arena. It’s the No. 1 telecommunications company in the U.S. regarding revenue and is playing a critical role in the 5G wave. Recent quarterly reports have provided interesting insights into its aggressive expansion into new territories and improvements to existing networks.
Verizon delivers 5G access to nearly 13% of the U.S. and is considered the most dependable 5G network, according to RootMetrics. The mobile network testing firm reported that in the first half of 2023, Verizon outperformed its competition in 112 of 125 markets.
Like T-Mobile, Verizon operates a consistent business with a similar margin profile. However, the biggest differentiator for investors is Verizon’s superb dividend profile. It yields 6.5% and has grown its payouts by 19 consecutive years. Therefore, the firm is playing a key role in shaping the future of U.S. telecommunications as we know it.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a leading semiconductor play that crafts the microchips and processors needed to power countless 5G networks across the U.S.
With a leadership position in the 5G chipset industry, Broadcom’s semiconductor innovations are powering base stations and network equipment. Its advanced chips effectively enhance data throughput and connectivity. Moreover, it develops indispensable radio frequency systems solutions and switch fabric technology, supporting high-speed, low-latency 4G demands.
In 2023, 5G-related revenues for Broadcom surged $5.9 billion, and AI-related earnings contributed $4.2 billion out of its total income of $28.2 billion. In recent quarters, though, we’ve seen its AI-related revenues skyrocket, blowing past other segments. Nevertheless, 5G sales still form a sizeable chunk of the overall pie, potentially becoming a major growth driver for its stock. Additionally, the firm’s strategic positioning in these cutting-edge technologies continues to underscore its market dominance while ensuring ongoing growth and influence in the tech sphere.
On the date of publication, Muslim Farooque did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
