The case study I shared yesterday here in MoneyWire about Estonia – and how this tiny nation is lightyears ahead of us, thanks to 5G – is a fascinating story. Today, I’d like to be a little more specific as to how to invest in 5G. I prefer a simple, elegant approach that has already proven itself in every other tech boom since the 1980s.
There will be a lot of winners in the race to 5G. For example, one stock that could be up big in the years ahead is Nokia (NOK), one of the key makers of the hardware critical to the technology.
But as 5G takes the world by storm and ushers in a new technological revolution, there’s about to be a WAY bigger opportunity than we could capture by simply buying Nokia stock. The infographic below shows how 5G compares to 4G… how that compared to 3G… and so on.
Those Nokia flip-phones had their heyday back at 1G and 2G. Then 3G was what allowed Apple (AAPL) to take the world by storm with the iPhone. 4G made social media and streaming movies possible – you’re welcome, Facebook (FB) and Netflix (NFLX).
As you see, 5G is much bigger. The speeds are so much faster that you could think of 5G as the fuel of the future.
So what’s the engine? Microchips. Every company that sells you a 5G device first needs someone to supply the chips. 5G chips will send and receive massive amounts of data… and that’s where I’d invest.
But actually, chipmakers are almost always the secret to getting rich with new technologies. Just look at the personal computer (PC) revolution, for example.
During the rise of PCs in the ’80s and ’90s, chipmakers went up by almost unfathomable amounts. Intel (INTC), which supplied the much-needed chips for computer processing speed, shot up by an astounding 7,951% from 1985 to 2000:
Then, during the explosive growth of the internet in the 1990s, Cisco Systems (CSCO), which manufactures the vital processing chips for internet routers, soared an impressive 4,988%:
Then came smartphones and 4G in the 2010s. As you see below, chipmakers led all other industries during the 4G build out. Semiconductors returned 237% – more than twice what mobile phones themselves delivered.
Keep in mind, these were returns from the broad sectors. But just look at how well these individual chip companies did during the smartphone build out:
- Broadcom (AVGO), a chipmaker based in San Diego, California, handed early investors 1,482% during the smartphone build out.
- Skyworks Solutions (SWKS), another chipmaker based in Woburn, Massachusetts, returned 503% to early investors.
- NVIDIA (NVDA), based in the heart of Silicon Valley, gained 1,030%!
- Micron Technology (MU) from Boise, Idaho, gained 260%, and NXP Semiconductors (NXPI) from the Netherlands returned 845%.
It’s also worth pointing out that Apple — the world’s biggest, wealthiest company and one of the leaders in smartphones — returned roughly 582% over that same period. The difference is why you need chipmakers when a tech revolution occurs. That’s true of 5G, too, and I tell you exactly which chipmaker I recommend now (and why) in my new special report, The 5G Chip That Will Spark a $53 Trillion Revolution.
By investing in chipmakers, you’re investing in every laptop, tablet, car, smartphone, and any other electronic device of the day. In fact, each one has multiple chips inside! For example, one chipmaker supplied FIVE chips for every iPhone X. So, for every phone Apple sold, this company sold five chips.
Now just think about the hundreds of billions of new chips that will need to be created for the Internet of Things (IoT). Tech companies are hard at work, connecting every physical object on the planet to the internet. Tech insiders estimate more than 1 trillion devices will be connected over the next 10 to 15 years.
Once you’re up to speed on the full scope of the opportunity in 5G, you’ll want to own one specific chipmaker. This company is one of the best in the world at what it does, and I bet you’ve never heard of it.
The 5G Chip That Will Spark a $53 Trillion Revolution
I mention all this because I think this under-the-radar company won’t stay that way for long. The financial media is already calling this company “the next hot 5G stock.”
The company has over 10,000 patents and has been named a Top 100 Global Innovator for seven consecutive years. Its success has led to long-term partnerships and exclusive deals with the likes of Samsung and Oracle (ORCL).
Even the 5G cell service from Verizon (VZ) and AT&T (T) will depend on this company’s chips. Everything, and I mean EVERYTHING, connected to the internet via 5G will either directly or indirectly use the same type of chip this company makes.
It’s also a well-established company that’s been around since the 1990s. Not only did it survive the dot-com crash, it went from a $2 billion market cap then… to a $17 billion market cap today. And thanks to its 5G advantage, it’s just getting started.
Take just a small stake in this stock. I think it’s the single best (and easiest) way to capture the full upswing of 5G wireless.
P.S. Remember, the rollout of 5G is going to be MUCH bigger than 4G.
4G was an improvement. 5G is a game changer.
That’s why every tech insider and analyst at my firm is excited about this once-in-a-lifetime opportunity. And right now is the perfect time to stake a claim.
Matt McCall’s MoneyLine Podcast
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt focuses on 5G. He dives into the huge opportunities within the mega-trend and talks with Paul Dellaquila, the gentleman who built the first 5G-focused ETF. Then, he discusses Apple’s new product launches and the huge potential in its Apple TV+.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
Learn where Matt McCall sees
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