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5G - Is The Time Now To Invest?


5G is the fifth generation cellular network technology. LTE is currently the fastest mobile technology available, peak data rates of up to 300 MBPS. 5G? upto 100 GBPS? Replace Wifi?

Beyond mobile operator networks, 5G is also expected to be widely used for private networks with applications in industrial IoT, enterprise networking, and critical communications.

With 5G, WiFi Isn't Going Anywhere. The Wi-Fi market is growing, not shrinking. According to a MarketsandMarkets report, the global WiFi market will be worth 33.6 billion by 2020.

Various countries are researching on 5G, 6G, 7G and 8G networks but right now not a single country is fully operational on 5G network. South korea which is at present the highest speed providing country, too proclaims to be the first 5G network country in upcoming year.

Japan is one of the several countries working on 100Gbps internet using advanced “optical packet switching technology”. For now, one Japanese internet provider is offering 2Gbps speeds — twice the pace of Google Fiber — for about $50 a month. That makes it the world's fastest commercially available internet service.

Your current phone won't be able to work on 5G.

Which businesses?

The market for 5G semiconductors will boom to nearly $19 billion by 2022, up from $593 million last year, Bank of America/Merrill Lynch said in a March report.

"In terms of timing, first to be involved will include companies exposed to test/measurement and front-haul including Xilinx (XLNX), Analog Devices (ADI), Marvell Technology Group (MRVL), and Infineon."

In addition, infrastructure chip vendors such as Broadcom (AVGO) and Intel (INTC) will see upside as networks are built out, says the Bank of America report. When 5G smartphones and mobile devices hit the market, among the semiconductor vendors to gain will be Qualcomm(QCOM), Broadcom, Skyworks Solutions (SWKS), and Qorvo (QRVO).

Qualcomm is expected to supply chips for Apple 5G iPhones rolled out in 2020.5G apps could boost demand for Apple iPhones

Research firm Gartner expects more than 77 million 5G phones to be sold worldwide in 2020,with the total rising to 230 million units in 2021 and 840 million in 2023. By 2022, Cisco Systems (CSCO) estimates that 12% of all global mobile traffic will come from 5G connections.

Keysight Technologies (KEYS) makes 5G network test gear.

5G networks will connect to fiber-optic networks. That will provide reliability for emerging automotive, robotics and medical applications. Potential 5G stocks to buy include Corning (GLW), Ciena (CIEN), Acacia Communications (ACIA) and other fiber-optic players.

Crown Castle (CCI) makes "small-cell" radio antennas for 5G services in urban areas.

If Verizon announces a big expansion of its 5G broadband services to homes, look for cable stocks like Comcast (CMCSA) and Charter Communications (CHTR) to take a hit.

Source: Internet,

My personal favorites?

1. $SWKS

2. $AVGO

or just $SOXL? :-)

Reading all this, do expect consolidation in this industry.


Disclosure: I am/we are long SWKS, VZ, AVGO.

Additional disclosure: Inspired by @Blury8 - #FiveGPlay you Savages! :-)