4th Feb 2022
The latest generation of cellular networks, 5G is providing faster connectivity speeds and broader bandwidth than ever before. Still, this technology is far more than just a pathway for quicker connectivity for smartphone users and gamers. From healthcare to connected vehicles and traffic systems and even smart cities, 5G has the potential to fuel innovation and transform a range of industries.1
In order to determine the best 5G stocks to invest in, it’s worth looking into the multitude of major players standing at the forefront of the 5G revolution, with their innovations offering potential breakthroughs across a range of industries. They might be worth a look for investors looking for exposure to 5G, in addition to Defiance’s 5G ETF (FIVG) that gives diversified access to this dynamic space.
Innovation on numerous fronts
With a year-to-date gain of 19.06%,2 Qualcomm has proven to be a stellar performing 5G stock this year. The San Diego-based semiconductor company has a 5G ecosystem spanning a multitude of industries. Semiconductors are used to manufacture the CPUs found in devices such as smartphones, vehicles, and televisions, meaning that companies such as Qualcomm are directly involved in the production of devices that will utilize 5G networks.
Through its Snapdragon Automotive 5G Platform, Qualcomm is utilizing 5G to fuel innovation in the automotive industry. This includes the supply of digital cockpit solutions, whereby in-vehicle user experiences such as comfort, safety, and reliability are improved thanks to greater connectivity. Using Qualcomm’s Car-to-Cloud Platform, automakers are able to provide users with personalized in-vehicle experiences through over-the-air (OTA) updates and on-demand performance upgrades.
In addition to enhancing users’ driving experiences, Qualcomm is also at the forefront of autonomous driving efforts. Using Cellular vehicle-to-everything (C-V2X) technology, Qualcomm has enhanced features such as adaptive cruise control with lane keeping, automated lane changing, and autonomous parking. Such advancements are pushing Qualcomm closer to developing robo taxis, robo delivery, and long-haul trucking.3
Qualcomm is also looking to improve business performance by enhancing mobile computing solutions. Through the Snapdragon 5G compute platforms, Qualcomm aims to provide laptops and 2-in-1s (laptop and tablet hybrid) ith enhanced performance, faster connectivity, and longer battery life, thereby improving the efficiency of businesses and working professionals. When NPI Materials, a small business that assists enterprises in their manufacturing activities, adopted devices that are powered by Qualcomm’s Snapdragon compute platforms, they experienced a 15% improvement in service turnaround, an 80% improvement in customer service response time and a 10% increase in overall productivity.4
A leading network provider
Whether or not your decision to invest in 5G has been spurred on by cellular connectivity, Verizon Communications Inc is proving to have a major influence beyond the telecommunications industry. Through its 5G Labs, Verizon is partnering with a range of startups, enterprises, and academic institutions in order to develop new 5G-powered innovations.
Verizon has provided 5G Ultra Wideband to the Innovation Hub at the University of Illinois Research Park. This has provided students and local startups and corporations with the opportunity to fuel research and development for technologies such as AI, drones, guided vehicles, manufacturing process automation, and virtual reality among others.5
One of the more prominent 5g network stocks, Verizon is also aiming to improve service delivery by leveraging 5G connectivity. This priority influenced a partnership with customer experience company Care AR. Through the use of Verizon’s 5G networks, Care AR is able to advance the use of their augmented reality and AI-based platform. The result is that technicians are able to remotely resolve customer service queries more quickly and safely than before.6
The smart retail environment
One 5G stock that has risen significantly this year is semiconductor manufacturer Marvell Technology Inc, having skyrocketed by 81.45% during this calendar year.7 By leveraging 5G along with 4G LTE, Marvell Technology is at the forefront of developing data processing units, switches, and transceivers to enhance intelligent connectivity across an array of industries.
In October, Marvell Technologies announced that its Prestera Ethernet switch platforms incorporating Dent have been rolled out by customers across the retail sector. The company expects this deployment to transform traditional brick-and-mortar stores into smart retail environments, primarily through autonomous retail applications.8
Uplifting communities through 5G
If you regard social responsibility as a key factor when determining which 5G stocks to buy, AT&T may be a relevant company to consider.
The telecommunications company announced its decision to provide 5G capabilities to the U.S. Department of Veterans Affairs (VA) Puget Sound Health Care System in Seattle, which is expected to enable the piloting of a range of healthcare use cases. This includes remote pain management through augmented reality (AR) or virtual reality (VR), remote near real-time surgical assistance through AR and VR, and the tracking of patients and assets in the facility through mobile-to-mobile connectivity between medical devices.9
AT&T is also looking to boost the education sector, working to bring 5G to universities across the United States including the University of Miami and Purdue University. Through its 5G infrastructure, AT&T is hoping to create elevated learning environments where students and teachers use AR and VR in their curriculums.
Another area of focus for AT&T’s 5G rollout is security, particularly for the growing remote workforce. Functions that AT&T is working to support include highly-secured employee access to data from any device, protection against web-based threats, and the 24/7 monitoring of public cloud environments.
Designed for business growth
In your search for the top 5g companies to invest in, there are several real estate investment trusts (REITs) that may be eligible for consideration. These include American Tower Corporation.
With a 52.20% year-to-date growth rate,10 American Tower is providing 5G access through its portfolio of broadcast towers — the largest in the United States.11 American Tower aims support the provision of 5G networks as broadly as possible. This includes the use of existing towers, coverage within buildings and venues, rooftop coverage, backup generators, and a build-to-suit construction program, whereby American Tower provides a tailor-made solution according to the business’s specific needs.
Accelerating AI development and gaming
Graphics processing unit designer NVIDIA has recently partnered with Google Cloud to create the first ever AI-on-5G Innovation Lab. This breakthrough is expected to enable network providers and AI developers to partner in the creation of advanced AI and 5G applications including smart cities and smart factories.12 Other potential applications include self-checkout retail locations and hospital technologies.
NVIDIA is also leveraging 5G technology in order to take cloud-based gaming to new heights. Through its GeForce NOW cloud gaming service, NVIDIA aims to provide high-quality, high-resolution gaming made possible by the faster download speeds that 5G offers.
With a broad spectrum of applications across numerous industries, 5G has the potential to fuel innovations that will enable individuals and businesses to operate with higher efficiency than ever before. After analyzing its potential, the “Global 5G Infrastructure Market 2021-2026” report has projected that the 5G market could grow from $12.9 Billion in 2021 to $115.4 Billion by 2026.13
1 “Top Use Cases for 5G Technology”, Intel https://www.intel.com/content/www/us/en/wireless-network/5g-use-cases-applications.html
2 Google Finance https://www.google.com/finance/quote/QCOM:NASDAQ?sa=X&ved=2ahUKEwi5zaeliO30AhVp_7sIHX29AlAQ3ecFegQIIBAe&window=YTD (As of December 18, 2021)
3 “How Critical Are Localization and Perception Technologies for Enhanced Autonomous Driving?”, Dheeraj Ahuja, April 23, 2021 https://www.qualcomm.com/media/documents/files/critical-role-of-localization-and-perception-in-autonomous-driving.pdf
4 “NPI Materials gained a competitive advantage with the Microsoft Surface Pro X with SQ® 1 processor powered by Qualcomm® Technologies.”, Qualcomm, https://www.qualcomm.com/media/documents/files/npi-materials-case-study.pdf
5 “Verizon accelerates 5G use cases with 5G Innovation Hub at University of Illinois Research Park” October 8, 2020 https://www.verizon.com/about/news/verizon-university-illinois-research-park
6 “Verizon Business and CareAR leverage 5G to transform service delivery and CX” October 4, 2021 https://www.verizon.com/about/news/verizon-business-carear-transform-service-delivery-and-cx
7 Google Finance https://www.google.com/finance/quote/MRVL:NASDAQ?sa=X&ved=2ahUKEwj-yI-7vO30AhW3_rsIHQaPBP4Q3ecFegQIIxAe (As of December 18, 2021)
8 “Marvell Announces Industry’s First Commercial Switch Platforms with Dent to Accelerate Smart Retail and Enterprise Edge Infrastructure”, October 12, 2021 https://www.marvell.com/company/newsroom/marvell-announces-industrys-first-commercial-switch-platforms-with-dent-to-accelerate-smart-retail-and-enterprise-edge-infrastructure.html
9 “AT&T and U.S. Department of Veterans Affairs Will Test 5G-Powered Healthcare Innovations”, AT&T, February 2, 2021 https://about.att.com/story/2021/att_va_5g_healthcare_innovations.html
10 Yahoo! Finance https://finance.yahoo.com/quote/AMT/financials?p=AMT )As of December 18, 2021)
11 “SOLUTIONS”, American Tower https://www.americantower.com/us/solutions/
12 “NVIDIA and Google Cloud to Create Industry’s First AI-on-5G Lab to Speed Development of AI Everywhere, June 28, 2021”, https://nvidianews.nvidia.com/news/nvidia-and-google-cloud-to-create-industrys-first-ai-on-5g-lab-to-speed-development-of-ai-everywhere
13 “Global 5G Infrastructure Market Report 2021: Market Is Expected to Grow From $12.9 Billion in 2021 to $115.4 Billion by 2026 – ResearchAndMarkets.com”, September 10, 2021, https://www.businesswire.com/news/home/20210910005400/en/Global-5G-Infrastructure-Market-Report-2021-Market-Is-Expected-to-Grow-From-12.9-Billion-in-2021-to-115.4-Billion-by-2026—ResearchAndMarkets.com