Lately it’s hard to get away from all the trade-war headlines. In the meantime, many investors are missing the other “trade war” — the one involving 5G stocks.
And there’s been some interesting developments there that I’d like to call to your attention today.
Pretty much all the big mobile carriers, from AT&T (NYSE:T) to Verizon (NYSE:VZ), are racing to roll out their own network with the superfast 5G technology. Overseas, Vodafone (NASDAQ:VOD) has been rolling out 5G across Europe and, soon, New Zealand.
But before you can use a 5G network, you’ve got to have a 5G phone. And really, that race is between Apple (NASDAQ:AAPL), Samsung, and Huawei.
Apple is expected to introduce 5G next year — with a 5G iPhone, plus a 5G MacBook. (Yes, a MacBook with cellular service!)
Samsung has them beat. It got there in April, with the Galaxy S10 5G.
Now, Huawei is pulling into second place in the 5G race. On Friday, it began selling its Mate 20 X 5G phone at home in China.
Huawei was no household name here in the United States until it got caught in the trade war. You may recall that in May, the U.S. government “blacklisted” Huawei. Once the 90-day grace period is up, American firms will no longer be allowed to even supply parts for Huawei phones.
But there’s a reason U.S. companies (and everyone else) are eager to do business in China:
China has over 1.4 billion people. In other words, nearly one-fifth of humanity lives there. Not only is China the largest country by population… it’s also the second-largest economy.
And that economy is booming — I’ve seen it with my own eyes. I was just in China this spring, and quickly reported back in Investment Opportunities about the opportunity I saw there. Skyscrapers are cropping up as fast as weeds in your yard. Most importantly, there remains a huge, untapped market of potential customers for smart devices. And those customers will want 5G.
The World’s Biggest Investor in 5G
The story here is much bigger than a Huawei phone. 5G is central to the country’s “Made in China 2025” plan. But even in the current five-year plan (2015 to 2020), China set aside $400 billion for 5G investment. (That’s roughly equivalent to the entire market cap of Alibaba (NYSE:BABA), the “Amazon of China.”)
When Deloitte ran those numbers through 2018, it found that China had outspent the United States by $24 billion on 5G infrastructure.
As a result, China will be a huge testing ground for:
- Super-fast smartphones from Huawei, running on 5G networks from China’s state-owned mobile providers, like China Mobile (NYSE:CHL).
- Smart highways. Speaking of China Mobile, that company is working on smart toll stations, plus traffic-tracking devices powered by artificial intelligence, which will help the country implement autonomous vehicles.
- In addition to self-driving cars, there’ll be self-driving buses. In the city of Zhengzhou – roughly 450 miles southwest of Beijing, where I stayed in May – the bus company Yutong is already testing electric buses that are autonomous… and avoid collisions by communicating via 5G.
- Smart streetlamps. Yes, even the streetlamps will connect to the 5G network. The lamps will be automatically adjusted, depending on the time of day and the weather conditions (making them more energy-efficient).
The possibilities are pretty much endless.
But they’re just that — possibilities — until you have the right hardware.
That’s true of any tech trend. It was true in the 1990s, when Cisco Systems (NASDAQ:CSCO) provided the “plumbing” that got all our homes and businesses connected to the internet. It was true in the 2000s, when Qualcomm (NASDAQ:QCOM) provided the chips that made the first iPhones work. (And they’re still in the iPhones of today, for that matter.)
Here’s the key with 5G: All of those devices need to be powered.
That’s why any investor needs to be on the lookout for the next big breakthrough in battery technology. It’s an innovation that will have multi-trillion-dollar economic implications:
Think of a world with self-driving electric cars that have massive ranges. Think of an iPhone that needs charging just once per month. Think of mass adoption of clean solar and wind energy. Think of airplanes that run on batteries. Think of the eventual demise of the oil and gas industry.
This is where we’re headed — but there are some serious limitations to the current technology! Lithium-ion batteries are too bulky, without enough battery life, and with too many safety concerns, not to mention the fact that key materials are in short supply. That’s why I believe the next big battery breakthrough will go down as one of the greatest inventions of the 21st century.
I’ve spent an enormous amount of time studying the battery industry. I can tell you this mega innovation isn’t a matter of “if,” it’s a matter of “when.” Click here for my presentation with the results of my research. That way, you can get in on this trend BEFORE the world catches on.
Insiders are already calling this potential new battery a “paradigm shift” in energy technology. Forbes calls it simply: “The battery that could change the world.”
Folks who get in on this breakthrough now, BEFORE it’s rolled out on a mass scale, will have the chance to be a part of perhaps the single largest legal creation of wealth in the last 25 years.
I can share with you what I’ve learned and show you how to profit. Click here to learn more.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now.