Here are eight stocks benefiting from the 5G boom.
Fifth-generation, or 5G, wireless technology is playing out to be one of the most rapidly growing areas of tech. Why should it be on your radar? This transformative technology will support the future of the telecommunications industry, as wireless providers are rolling out 5G networks all over the world. These next-generation networks allow for faster data transmission, higher-quality internet connections, greater global connectivity and increased capacity for advanced connected software applications. There are many ways to invest in 5G technology. You can invest in 5G networks, network providers, semiconductor manufacturers and even real estate investment trusts. If you want to stay ahead of what’s new in technology investments, here are eight 5G stocks to consider buying.
Verizon Communications Inc. (ticker: VZ)
When it comes to 5G winners, network carriers are at the top of the list. Verizon has been partnering with companies in different industries to bring its 5G technology to different markets, in particular the metaverse. Using 5G in augmented reality and virtual reality applications will allow people to experience the virtual world and have immersive experiences in the metaverse. Verizon has committed to bringing 5G to more than 100 million people, who will have the chance to experience this digital world while having their phones, homes and businesses connected by 5G Ultra Wideband.
American Tower Corp. (AMT)
American Tower is a specialized real estate investment trust, or REIT, that owns a portfolio of wireless communications towers. Towers are a critical and stable part of the wireless network infrastructure, making stock in these companies a long-term investment to consider. American Tower has also been expanding its holdings into the data center market, laying the foundation for infrastructure supporting 5G. Wireless subscriber and usage growth are tail winds for AMT, which is projected to have solid growth across its global portfolio of towers, many of which are in prime locations. As 5G technology continues its growth in both developed and emerging markets, there will be a need for more cell sites. AMT has a proven record of delivering towers to new sites that can meet the needs and challenges of wireless and broadcast networks.
Digital Realty Trust Inc. (DLR)
Digital Realty is a data center REIT. Some of Digital Realty’s customers include Verizon, Adobe Inc. (ADBE), LinkedIn and Amazon.com Inc.’s (AMZN) AWS. As 5G becomes more widespread, more data will be developed and consumed. This requires proper infrastructure to manage the bandwidth and connectivity for the size and scale of growing digital information. DLR has experience in scaling digital businesses in information technology services, financial services, health care, manufacturing and energy, among others sectors. With its focus on “becoming the heart of the internet,” DLR is a way to play 5G infrastructure.
Equinix Inc. (EQIX)
Equinix is the world’s largest data center operator, making it one of the best 5G stocks to buy. Equinix’s interconnection capabilities allow 5G technology to operate efficiently, and it has partnerships to prove it. In November 2021, Equinix announced an agreement with Dish Network Corp. (DISH) to provide connectivity infrastructure for Dish’s 5G network. EQIX also has a partnership with Nokia Corp. (NOK) to test and validate 5G services. This allows mobile network operators, cloud platforms, technology vendors and enterprises to come together to test and accelerate 5G technology. While shares of EQIX are down 15% for the year through March 17, the company is well positioned to capitalize on 5G expansion.
SBA Communications Corp. (SBAC)
SBA Communications operates 5G wireless communications towers, and it’s another REIT pick among the best 5G stocks to buy. SBA generates most of its revenue from the U.S. market and has closed more than 1,300 transactions, giving it towers in all 50 states. SBA has a trusted business model, brokering transactions that range from single towers to large-scale portfolios of thousands of towers in Canada, Central and South America, and South Africa as well.
AT&T Inc. (T)
This wireless carrier has made it a mission to drive the growth for 5G. AT&T has rolled out its 5G services nationally, offering its customers faster speeds and more capacity. AT&T serves more than 100 million U.S. customers through communications and entertainment services. In its fourth-quarter earnings results, AT&T reported continued customer growth in its wireless business, representing the fourth consecutive year of added subscribers. Rising 5G will be an opportunity for AT&T to expand its communication services to even more customers.
Ciena Corp. (CIEN)
Ciena is a telecommunications and networking equipment and software services supplier and is among the top 5G network infrastructure picks for 2022. It supports more than 85% of the world’s largest service providers and has an impressive client list that includes Amazon.com, AT&T, T-Mobile US Inc. (TMUS), the U.S. Department of Energy and Verizon. Ciena’s revenue for fiscal year 2021 was $3.6 billion, and the company sports a 7% five-year compound annual revenue growth rate. The company expects full-year revenue growth for 2022 to be 11% to 13% as the telecom sector increases spending on infrastructure resources.
Nvidia Corp. (NVDA)
While Nvidia is known for its graphics processing units used in video games, it has been gaining traction in 5G through its AI-on-5G platform, a service that simplifies deployment of artificial intelligence applications over 5G networks. For 5G connectivity, Nvidia touts its Nvidia Aerial program, a network for building high-performance applications. Nvidia’s programs will allow companies in a variety of industries to easily adopt 5G. Nvidia’s semiconductors power many devices, such as electric vehicles, smartphones and laptops and are in high demand across industry sectors. An investor in NVDA is investing in a company that has several means of exposure to the future of technology.
8 best 5G stocks to buy in 2022:
— Verizon Communications Inc. (VZ)
— American Tower Corp. (AMT)
— Digital Realty Trust Inc. (DLR)
— Equinix Inc. (EQIX)
— SBA Communications Corp. (SBAC)
— AT&T Inc. (T)
— Ciena Corp. (CIEN)
— Nvidia Corp. (NVDA)
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8 Best 5G Stocks to Buy in 2022 originally appeared on usnews.com
Update 03/18/22: This story was published at an earlier date and has been updated with new information.