Any tech investor worth their salt will tell you that 5G is the future of mobile internet connection, for now. Understandably, many investors and companies alike continue to invest in the top 5G stocks. What’s all the hype about, might you ask? Well, 5G, as the name suggests, is the fifth generation of wireless networking technology. Aside from providing significantly enhanced transmission speeds, 5G is also set to play a key role in bolstering Internet of Things (IoT) ecosystems. In theory, this would pave the way for massive developmental leaps in tech across industries and mediums. With seemingly plenty of growth potential and current gains from existing 5G companies, I can see how investors would build their bull thesis regarding the industry.
For starters, you have telecom companies who bring these services directly to consumers. At the same time, you also have semiconductor stocks such as AMD (NASDAQ: AMD) and Qualcomm (NASDAQ: QCOM) who make up the tech behind 5G. In terms of numbers, Gartner (NYSE: IT) expects that 5G will continue to see modest growth throughout this year. This is because it expects 5G smartphones to account for 35% of total smartphone sales in 2021. Like it or not, the 5G revolution will likely continue to gain traction this year. Could it be a good time to have these top 5G stocks on your watchlist?Top 5G Stocks To Watch Right Now
- T-Mobile US Inc. (NASDAQ: TMUS)
- MaxLinear Inc. (NYSE: MXL)
- Apple Inc. (NASDAQ: AAPL)
- Skyworks Solutions Inc. (NASDAQ: SWKS)
First up, we will be looking at wireless network frontrunner, T-Mobile. For the uninitiated, the company was the first to bring a national 5G network to the U.S. last year. This is thanks to its strategic merger with fellow telecom company, Sprint back in April. Notably, T-Mobile now operates the largest and fastest 5G network in the U.S. Given the growing adoption of 5G smartphones, this does put it in a great position to benefit from shifting consumer trends. Accordingly, this would help with building investors’ interest in TMUS stock which had a stellar year on the stock market throughout 2020. With its latest mobile plan launch, it would not surprise me to see this upward trend continue.Source: TD Ameritrade TOS
In detail, T-Mobile introduced its new Magenta MAX plan yesterday. Through this plan, T-Mobile clients have access to unlimited 4G and 5G data on their smartphones. Essentially, this means that users under this plan won’t be slowed down based on how much data is used. Moreover, the Magenta MAX plan facilitates video streaming with up to 4K resolution. Customers will also be entitled to a standard Netflix (NASDAQ: NFLX) subscription across all of T-Mobile’s MAX plans. Given all of this, it seems to me that T-Mobile has no plans on losing its lead in the telecom business any time soon. Could this help TMUS stock return to its former glory in 2021? You tell me.
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MaxLinear is a California-based hardware company. How does it relate to 5G? Simply put, the company provides mixed-signal semiconductor solutions for broadband communications purposes. By extension, its offerings help to bolster existing 5G wireless infrastructure which bodes well for the company amidst the current trends. Evidently, the company reported stellar figures in its recent fiscal earlier this month. In it, MaxLinear posted a 178% year-over-year bump in total revenue for the quarter to the tune of $194.7 million. The company cites strong demand for its broadband access and connectivity products as a key growth driver throughout the quarter. Moving forward, Max Linear’s revenue outlook for its Q1 2021 suggests a 238% year-over-year increase. With figures like this, MXL stock’s gains of over 130% in the past year do make sense.Source: TD Ameritrade TOS
Despite its current momentum, it seems that MaxLinear is not resting on its laurels just yet. Just last week, the company revealed that it was collaborating with social media giant Facebook (NASDAQ: FB). In particular, MaxLinear is now working with Facebook Connectivity on Evenstar OpenRAN Solutions. In brief, the Evenstar program is a joint effort focused on building radio access network (RAN) architecture to be integrated with 4G and 5G networks. Seeing as MaxLinear’s core tech will play a major role in this program, MXL stock could be looking at another great year ahead. Would you agree?Apple Inc.
Another top player in the 5G industry now would be consumer tech juggernaut Apple. According to Counterpoint Market Research, the company’s iPhone 12 lineup supposedly snagged 24% of 5G smartphone sales worldwide in October. To highlight, it released the smartphones on October 23, following a week of pre-orders. Not to mention, this was after global smartphone sales declined by 12.5% in 2020, as mentioned by Gartner Research. This in-turn likely contributed to Apple’s record $111.4 billion fourth-quarter revenue as well. With AAPL stock more than doubling in value since the March 2020 lows, could it still have room to grow?Source: TD Ameritrade TOS
The answer to that could be a yes. Impressively, it seems that the company is already eyeing the next frontier in wireless technology, 6G. According to a report by Bloomberg last week, Apple is looking to hire engineers for a 6G research arm. This may sound exciting, but it should be noted that 6G is looking at an operational rollout around 2030 or later. Could Apple be jumping the gun? Not necessarily. This is because it has been shifting towards being more vertically integrated. Basically, the company continues to take over designing more of its own components. Ideally, a self-made 6G chip would serve to improve profit margins in the long term. All things considered, will you be adding AAPL stock to your watchlist?Skyworks Solutions Inc.
Following that, we have semiconductor manufacturing company, Skyworks. Similar to our second entry, the company’s offerings are vital components in radio frequency and mobile communications systems. In particular, its high-performance analog semiconductors work to power 5G mobile platforms, IoT ecosystems, autonomous transport, and machine-to-machine installations. Seeing as its products enable a wide variety of booming industries, Skyworks would be very busy at the moment. In fact, SWKS stock has been on a tear, gaining by over 15% since its first-quarter fiscal posted last month.Source: TD Ameritrade TOS
In it, the company reported record revenue of $1.51 billion for the quarter. This marks a solid 69% year-over-year increase. Furthermore, the company doubled its earnings per share over the same time as well. According to Skyworks, demand for its solutions continues to accelerate across a growing set of customers and end markets. Looking forward, it describes the current multi-year wireless transition towards 5G as a “burgeoning set of new opportunities”. Time will tell if it can make the most of these opportunities. In the meantime, will you be watching SWKS stock?