The best 5G stocks are set to evolve as the focus shifts from consumer applications to business services delivered via cloud computing. Apple is a key player to watch in the consumer space, with its upcoming iPhone upgrades and the introduction of mixed-reality headsets in 2024. However, Huawei’s 5G Mate 60 Pro poses a serious challenge to Apple’s dominance in China.
Qualcomm, a leading provider of 5G modems, recently announced a new chip supply agreement with Apple that covers all iPhones through 2026. This agreement highlights Qualcomm’s technological leadership in the 5G modems space. On the other hand, Apple is also developing its own 5G modems, signaling its commitment to becoming more self-sufficient in this area.
Meanwhile, investors should pay attention to company earnings calls for updates on the adoption of 5G technology across various sectors. Wireless firms like T-Mobile US are leading the deployment of 5G wireless services in the US using midband radio spectrum. T-Mobile currently holds the largest amount of 5G wireless spectrum among US service providers.
Verizon and AT&T are playing catch-up in the race to deploy 5G networks. However, Goldman Sachs predicts that 5G network capital spending by the big three carriers will decrease in the near future.
In addition to telecommunications companies, industrial sector companies are also embracing 5G technology. Many are implementing private 5G networks to improve equipment monitoring and management. The industrial sector currently has the highest engagement with 5G, according to a report by Bank of America.
The future of 5G stocks lies in the synergy between 5G wireless services and cloud computing. Cloud computing giants like Amazon, Microsoft, and Google are partnering with telecommunication operators to improve the efficiency, latency, and speed of 5G networks. Edge computing, which brings data processing power closer to customers’ devices, is a key element in the deployment of 5G wireless services.
While smartphones currently drive the demand for 5G chips, other industries are expected to adopt the technology. Manufacturing automation, cloud gaming, autonomous vehicles, drones, and remote healthcare services are just a few examples of how 5G wireless can revolutionize various sectors.
Overall, the future of 5G stocks will revolve around the increasing adoption of 5G technology in business services, the development of private networks, and the synergy between 5G and cloud computing.
Sources:
– Bank of America
– Dell’Oro
– Omdia