14 Best 5G Stocks To Buy Now
In this article, we will take a look at the 14 best 5G stocks to buy now. To see more such companies, go directly to 5 Best 5G Stocks To Buy Now.
5G is one of those areas that are guaranteed to grow and see huge investments in the coming years. The 5G boom will give rise to a complete ecosystem, which, when coupled with future technologies like AI and IoT, will create a plethora of opportunities in the industry. Governments and private sector around the word are scrambling to unlock opportunities in the 5G space. The 5G connectivity penetration will create new growth avenues in hardware and software space. A 2020 report by Edward Jones on 5G said that 5G connectivity will take quite some time to realize due to complex and technical infrastructure needs. The report also said that 5G deployment will not be able to reach completion levels until software developers test and gauge how to best utilize high speeds and response times that are unlocked by 5G.
The report also talked about some specific companies that stand to benefit from the upcoming 5G revolution.
"In the communication services sector, we anticipate that Verizon (VZ) will be well-positioned to offer 5G services because it is aggressively building its 5G network. We believe that AT&T (T) will also benefit from 5G, although its business is more diversified than Verizon's, so 5G may have less of an impact on AT&T's overall results. For investors seeking international diversification, Canadian telecom company BCE (BCE) will be introducing 5G services, although we expect the 5G build in Canada to lag about a year behind the U.S implementation. Also, we believe Google's parent company Alphabet (GOOGL) could benefit from 5G due to its significant investment in developing driverless-vehicle technology. We anticipate that American Tower (AMT) will benefit because service providers throughout the world will need to add 5G equipment at wireless tower sites. However, we note that all of these companies have exposure to a number of markets besides 5G, so results can be impacted by changes in other parts of their businesses."
That’s why investors are looking for promising opportunities in the space to benefit from the long-term growth catalysts in the industry. However, the industry has seen headwinds lately amid a decline in spending. Nokia’s management recently talked about these challenges and said that the slowdown in the 5G sector would prove to be short term as there’s still a huge demand and appetite for investments. Nokia CEO Pekka Lundmark recently said in an interview with Bloomberg that there’s “substantial need for operators to invest in 5G globally with only approximately 25% of the potential mid-band 5G base stations so far deployed outside China.”
The economic benefits of the 5G revolution will be seen far and wide. A PwC report estimates that healthcare sector will be the biggest beneficiary of the 5G connectivity penetration. The report said that the 5G effect on healthcare could add almost half a trillion dollars to global GDP. Other industries that stand to benefit from 5G include utilities, consumer, media, industrial manufacturing and financial services. PwC said that in aggregate, 5G adoption will add about $13 trillion to global GDP by 2023. The report said that the biggest benefit of 5G will be seen in North America, followed by Asia and the Oceania. However, as mentioned by Edward Jones, PwC also said that initially, the effect of 5G will be slow and not much visible. But starting 2025, there will be glaring benefits of 5G visible in different economies throughout the world.
Photo by Mika Baumeister on Unsplash
Our Methodology
For this article first scanned Defiance 5G Next Gen Connectivity ETF (NYSEARCA:FIVG) and listed its holdings. We then gauged hedge fund sentiment for all these stocks and picked 14 of these stocks with the highest number of hedge fund investors. FIVG ETF includes 90 stocks that are involved in the development of 5G networks. The ETF’s portfolio includes companies from different categories of the 5G space, including cellular antennas and routers, mobile network operators, satellite-based communications, enhanced mobile broadband chips, new radio technology, wireless network test and optimization equipment, cloud computing equipment, software-defined networking or network functions virtualization, fiber optic cables, or cell tower and/or data center real estate investment trusts.
Best 5G Stocks To Buy Now
14. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 59
Verizon Communications Inc. (NYSE:VZ) is a high-yield dividend stock in the telecommunications space. Verizon Communications Inc. (NYSE:VZ) recently announced that its up to 200MHz C-band 5G spectrum has been cleared for use four months ahead of schedule. Verizon Communications Inc. (NYSE:VZ) plans to use the new spectrum to expand its 5G-based home and business internet business.
As of the end of the first quarter of 2023, 59 hedge funds out of the 943 funds tracked by Insider Monkey were long Verizon Communications Inc. (NYSE:VZ). The biggest stakeholder of Verizon Communications Inc. (NYSE:VZ) during this period was Ric Dillon’s Diamond Hill Capital which owns a $258 million stake in the company.
The London Company Large Cap Strategy made the following comment about Verizon Communications Inc. (NYSE:VZ) in its second quarter 2023 investor letter:
“Exited: Verizon Communications Inc. (NYSE:VZ) Sale reflects heightened competitive activity from both AT&T and T-Mobile. While VZ has the highest quality network, we are concerned that competitors’ focus on market share gains could continue to negatively affect VZ’s business.”
13. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 61
Cisco Systems, Inc. (NASDAQ:CSCO) offers several software and hardware solutions in the 5G space, including Cisco Private 5G service, 5G Cloud native architecture and hardware products to reply 5G infrastructure. Cisco Systems, Inc. (NASDAQ:CSCO) stock recently jumped after Citi opened a 30-day positive catalyst watch on the company.
A total of 61 hedge funds in Insider Monkey’s database of 943 hedge funds reported owning stakes in Cisco Systems, Inc. (NASDAQ:CSCO).
Artisan Value Fund made the following comment about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q4 2022 investor letter:
“We had one sale this quarter, exiting network equipment company Cisco Systems, Inc. (NASDAQ:CSCO). We chose to use the proceeds on more attractive value opportunities as Cisco’s growth has come in below what we had hoped for, and the company is increasingly looking at M&A to augment its growth rate.”
12. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 62
Marvell Technology, Inc. (NASDAQ:MRVL) ranks 12th in our list of the best 5G stocks to buy now according to hedge funds. Marvell Technology, Inc. (NASDAQ:MRVL) has already gained about 65% year to date. Marvell Technology, Inc. (NASDAQ:MRVL) offers several 5G-related solutions. These include Marvell? DSP-powered 50G to 400G modules, Prestera?-powered high-performance carrier switches for disaggregated cell site gateway, 5G security solutions, Radio Access Networks (RAN) solutions, among many others.
Of the 943 hedge funds in Insider Monkey’s database, 62 hedge funds reported owning stakes in Marvell Technology, Inc. (NASDAQ:MRVL). The biggest stakeholder of Marvell Technology, Inc. (NASDAQ:MRVL) during this period was Gavin Baker‘s Atreides Management which owns a $223 million stake in the company.
Baron Opportunity Fund made the following comment about Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2023 investor letter:
“We took advantage of weakness to purchase shares of Marvell Technology, Inc. (NASDAQ:MRVL), a leading supplier of infrastructure semiconductor solutions that enable the rapid and efficient movement of data throughout the broader data economy, from the data center core to the network edge. Through both organic development and acquisitions led by CEO Matt Murphy since he took over in 2016, Marvell has built a portfolio of market-leading products and IP across computing, networking, security, electro-optics, and storage. Consequently, the company is a critical partner for hyperscale cloud service provider, data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial end-market customers. Marvell is targeting 15% to 20% average revenue growth through the semiconductor cycle in the coming years, largely driven by secular trends and company-specific product innovations within the cloud, 5G, and automotive end markets. We believe Marvell can deliver on or exceed this target because, among other growth opportunities, its market-leading optical products are critical to delivering increasing data transmission speeds required by hyperscale customers in AI training and inference. At the same time, the company is simultaneously ramping up a custom silicon business working directly with hyperscale partners. Given the dislocation in the stock on near-term cyclical concerns, we believe we paid an attractive price for the long-term growth of this industry-leading company.”
11. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 65
American Tower Corporation (NYSE:AMT) is a REIT that operates properties for data centers, wireless communications infrastructure and related operations. Amid a growing demand for 5G infrastructure, the American Tower Corporation (NYSE:AMT) stands to benefit due to its dominance in the industry.
In July, American Tower Corporation (NYSE:AMT) upped its 2023 guidance for adjusted funds from operations, primarily due to core property outperformance. American Tower Corporation (NYSE:AMT) also posted strong Q2 results. AFFO in the period came in at $2.46 beating estimates by $0.04. Revenue in the quarter jumped 3.7% year over year to $2.77 billion, beating estimates by $50 million. Property revenue jumped 4.4% to $2.729 million.
Akre Focus Fund made the following comment about American Tower Corporation (NYSE:AMT) in its second quarter 2023 investor letter:
“The Fund owns many businesses that stand to benefit enormously from A.I. The compute power demanded by A.I. is growing exponentially and will continue to fuel demand for the wireless and data center infrastructure provided by American Tower Corporation (NYSE:AMT). The two negative detractors from performance this quarter were American Tower and Danaher.”
10. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) offers a host of hardware and software solutions for 5G. Intel Corporation (NASDAQ:INTC)’s chips are expected to see a wide demand amid the AI and 5G boom. Intel shares recently jumped after the company's Q2 numbers showed the PC market might finally be seeing a rebound.
As of the end of the first quarter of 2023, 68 hedge funds in Insider Monkey’s database reported owning stakes in Intel Corporation (NASDAQ:INTC).
ClearBridge Large Cap Growth Strategy made the following comment about Intel Corporation (NASDAQ:INTC) in its Q4 2022 investor letter:
“A third approach to return generation is purchasing idiosyncratic businesses that largely control their own destiny. Intel Corporation (NASDAQ:INTC), which we purchased in the first quarter on the premise that it would develop a leading domestic foundry business, has struggled with execution missteps and product delays. We are maintaining the position to provide ongoing exposure to semiconductors.”
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 69
QUALCOMM Incorporated (NASDAQ:QCOM) offers various hardware and software products for the 5G ecosystem. Some of its notable offerings include Snapdragon 5G Compute platforms, fully integrated high-power mmWave antenna module for 5G fixed wireless access (FWA), The Snapdragon Automotive 5G Platform and Qualcomm? Snapdragon? 5G Modem-RF systems.
QUALCOMM Incorporated (NASDAQ:QCOM) ranks 9th in our list of the best 5G stocks to buy. As of the end of the first quarter of 2023, 69 hedge funds in Insider Monkey’s database of 943 funds reported owning stakes in QUALCOMM Incorporated (NASDAQ:QCOM).
Here is what Aristotle Value Equity has to say about QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2023 investor letter:
“Qualcomm, a leading wireless communications technology company, was one of the largest detractors for the period. Weaker demand for handsets, elevated channel inventory and an underwhelming Chinese economic recovery resulted in a more difficult‐than‐expected short‐term outlook. Qualcomm executives are navigating the short‐term challenges by actively managing operating expenses. In recent years, despite threats of large clients developing in‐house chips (e.g., Apple and Samsung), Qualcomm has been able to retain its high market share forged by a history of high spending in R&D and what we consider to be technological superiority. Longer term, we believe Qualcomm will continue to benefit from 5G penetration, as well as from the execution of its diversification strategy, asInternet of Things and Automotive remain attractive end markets. As the world continues on the path toward a proliferation of connectivity between varying devices (e.g., smart phones, tablets, wearable technology, Wi‐Fi access points, factory automation and infotainment systems in autos), we are convinced the company is in a strong position to continue to win market share in both existing and new end markets, and to continue to return FREE cash flow to shareholders.”
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 72
Semiconductor company Broadcom Inc. (NASDAQ:AVGO) is one of the best 5G stocks to buy according to hedge funds. Earlier this year, Apple said it signed a multibillion-dollar deal with Broadcom Inc. (NASDAQ:AVGO) after which Broadcom will make 5G radio frequency components — including FBAR filters — and connectivity components for Apple.
A total of 72 hedge funds in Insider Monkey’s database of 943 hedge funds reported owning stakes in Broadcom Inc. (NASDAQ:AVGO) as of the end of the first quarter.
Here is what Aristotle Atlantic Partners has to say about Broadcom Inc. (NASDAQ:AVGO) in its Q2 2023 investor letter:
“Broadcom contributed to outperformance, as the company is seen as a key beneficiary of the investment in generative Artificial Intelligence (AI) and Large Language Models (LLM). The company’s Application-Specific Integrated Circuit (ASIC) chips are being custom-built for customers to use in their data centers for accelerated computing. Broadcom’s networking chipsets are also expected to see increased levels of demand, as customers increase investments to enable the high-speed data transfer required by advanced AI training and inference. The company also announced a new multi-year supplier relationship with Apple, the company’s largest customer.”
7. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 73
Semiconductor company Analog Devices shares have gained about 14% year to date. The company is one of the market leaders in radio technology devices for cellular infrastructure. Amid the 5G revolution Analog Devices stands to benefit from the growing demand for 5G chips and equipment.
Insider Monkey’s database of 943 hedge funds shows that 73 funds had stakes in ADI as of the end of the first quarter. The biggest stakeholder of the company during this period was David Blood And Al Gore’s Generation Investment Management which owns a $1 billion stake in the company.
Madison Investors Fund made the following comment about Analog Devices, Inc. (NASDAQ:ADI) in its second quarter 2023 investor letter:
“The bottom five individual contributors for the quarter were U.S. Bancorp, Progressive, Analog Devices, Inc. (NASDAQ:ADI), Dollar Tree, and Danaher. Analog Devices and Danaher are both seeing end market demand moderate (in semiconductor and medical research, respectively) compared to the artificially high levels they experienced for two years due to the post-Covid chaos in supply chains. Despite these near-term dynamics, we think the longer-term outlooks remain excellent in both cases.”
6. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 80
Telecom and media company Charter Communications, Inc. (NASDAQ:CHTR) ranks 6th in our list of the best 5G stocks to buy now according to hedge funds. As of the end of the first quarter of 2023, 80 hedge funds in our database of 943 funds reported owning stakes in Charter Communications, Inc. (NASDAQ:CHTR). The biggest hedge fund stakeholder of Charter Communications, Inc. (NASDAQ:CHTR) was Natixis Global Asset Management’s Harris Associates which owns a $2 billion stake in the company.
Weitz Large Cap Equity Fund made the following comment about Charter Communications, Inc. (NASDAQ:CHTR) in its second quarter 2023 investor letter:
“We added a new, direct position in Charter Communications, Inc. (NASDAQ:CHTR) at an average price in the low $330s per share during the quarter. At that price level, we found the absolute and relative valuation for the broadband company too compelling to ignore. Our combined Charter exposure is 5.3% via holdings of both Liberty Broadband and Charter.”
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Disclosure: None. 14 Best 5G Stocks To Buy Now is originally published on Insider Monkey.