Top 5G Stocks to Look out for in 2021
Global Tech Outlook presents a list of the Top 5G Stocks to Look out for in 2021.
The entire mobile networking future, is now on wheels with the entry of 5G technology.
- From 1G, that arrived in the 1980s alongside the very first mobile phones. Mobile technology was not accessible to everyone, with a mobile phone costing around £3,000.
- 2G was widely used in the 1990s. Users could send texts for the first time. Around this time, the public started to adopt mobile phones on a larger scale.
- 3G was used mainly in the 2000s and was a major breakthrough. 3G is still in use today and compared to previous generations can transfer larger amounts of data, enabling video calls, file sharing and easy internet connectivity.
- 4G was released in 2009. Far superior to 3G, 4G makes video calls, media streaming and internet access much faster and more accessible.
To 5G, which is hailing the entire mobile network today, networking has always been transient. Global Tech Outlook today, in this article presents the Top 5G Stocks to Look out for in 2021.
Qualcomm is a technology company headquartered in San Diego, California. They design and create software and chips for use in wireless equipment like mobile phones. Qualcomm also develop and commercialise wireless technologies and have previously licensed many technologies related to 3G and 4G technology.
For 5G technologies, more connected devices result in greater income for Qualcomm, due to growth in licensing sales. Last year Qualcomm reached an agreement with Apple for the supply of their chipset in a multi-year deal, concreting the pivotal role Qualcomm could play in 5G technologies. As 5G goes beyond mobile phones, it presents a big opportunity for Qualcomm; its chips enable communications in everything from IoT devices to autonomous cars.
Ericsson is a telecommunications equipment and services company headquartered in Stockholm, Sweden. They offer services, software and infrastructure in information communication technologies and have around a 27% market share in 2G/3G and 4G mobile network infrastructures. It’s no surprise that Ericsson is heavily invested in the 5G revolution.
Ericsson provides hardware and services that help telecom providers upgrade their networks to accommodate the speed increases of 5G technology, with 81 deals signed by February 2020. Additional to the agreements Ericsson boasts, 25 of its networks are also live. In terms of 5G, Ericsson has a strong position, being the first company to deploy 5G networks across four continents, and claiming it supports the largest range of supported devices for 5G connections.
Nokia is a telecommunications and consumer electronics company headquartered in Espoo, Finland. Shortly behind Ericsson, Nokia claims 67 5G contracts and currently has 19 live networks. Nokia currently holds a market share of around 27% outside of China and boasts than it has won 100% of the contracts it has gone for outside of China, and 90% in China.
Nokia is a successful company with a market cap of around $24bn, and pays a strong dividend for the company’s positioning. Considering these factors, Nokia could be a good 5G stock to buy that is not a market-leader.
Verizon Communications (VZ)
Verizon is a telecommunications provider headquartered in New York, U.S. Verizon chose Ericsson to help upgrade their core network so it is capable of managing 5G speed and communication upgrades. Verizon is hoping to drive its future profitability by the growth in its wireless technologies.
Verizon is the largest wireless communications service provider in the U.S. boasting a market share of 35% and a market cap of around $230bn. Verizon currently also offers the highest dividend on the list and its earnings report following the Coronavirus market crash of March 2020 demonstrated its strength and reliance to weather hard times. The stock holds good potential for future growth based on the above information, especially considering the possible future utility of the 5G network.