Whenever the word “trillion” comes up, you better believe that smart investors are paying attention. After all, with that much money in play, there’s no end to the potentially sky-high profits that we could see.
And that’s precisely the reason 5G stocks are so exciting for analysts and investors alike: it’s a trillion-dollar industry that’s going to be swinging into motion in 2020. Tech companies are going to generate money across the entire economy.
First, understand that 5G technology is going to be the harbinger of a massive infrastructure overhaul.
With more companies offering 5G products, and 5G tech being used to supplement all manner of other innovations, we’re going to need more cell towers and other types of infrastructure.
5G has the power to radically shape the future of so many tech companies. And, of course, that amount of impact is going to generate buzz, excitement, and profits.
Consider that industry heavyweights are going all-in on 5G technology.
Apple Inc (NASDAQ:AAPL), never one to be left behind in a tech arms race, has already made plans to adopt 5G tech into its product lines, with the express belief that it will help increase sales of its “iPhone.” (Source: “Apple has a new biggest bull on Wall Street as 5G iPhone launch approaches,” CNBC, January 13, 2020.)
Wall Street analysts are projecting that 5G will help revitalize phone sales as consumers rush to upgrade to the latest and greatest technology. That’s an exciting prospect for phone makers.
“There is enough complexity and hype when it comes to 5G (the next-generation wireless network) that we believe Apple can exploit this multi-year opportunity,” said D.A. Davidson Companies analyst Tom Forte. (Source: Ibid.)
We can expect to see bigger investments in the 5G sector in 2020 as the industry continues to grow. Tech stocks that operate in the 5G space should see healthy growth.
The switchover from 4G to 5G is fast approaching, and we’re seeing companies gear up for that.
Analysts are expecting to see 5G product launches sometime within the next quarter or so, meaning we could see a surge of profits hit multiple big-name companies. (Source: “AT&T stock gets a downgrade as analyst braces for imminent wave of 5G deals,” MarketWatch, January 30, 2020.)
On top of that, smaller 5G stocks will no doubt rise with the tide as many hot new products fly off the shelves into the waiting hands of consumers.
And that’s where the true value lies.
Many of the smaller 5G stocks could be some of the best plays on the tech stock market in 2020. After all, whenever we see a massive technical advancement like what we’re going to see with 5G, smaller stocks operating in the industry see massive gains.
Meanwhile, giants like AT&T Inc. (NYSE:T) are looking to expand 5G tech globally. AT&T recently announced that its 5G network is now live in 10 markets. (Source: “AT&T’s 5G network launches for consumers in 10 markets, but don’t buy a new 5G phone yet,” CNBC, December 13, 2019.)
Without a doubt, 5G stocks are going to be some of the most potential-filled stocks around.
And that makes sense. 5G technology isn’t only going to bring faster download speeds to our smartphones; it’s going to open up a number of avenues toward innovation in already established industries such as data processing and the Internet of Things.
With unparalleled network speeds, more intense processes will be done much faster. This will allow for better communication between technologies, as well as provide the ability for computers to rip through information much faster.
So many industries will be affected by the 5G tech revolution. Take cybersecurity as one example. Due to the immense speed of 5G, some project that it will make many of our current cybersecurity measures obsolete, opening the door for the cybersecurity sector to boom.
5G technology could also play a major role in another trillion-dollar industry: artificial intelligence (AI). 5G’s intensely fast download speeds could help with machine learning and other types of data processing that are involved with AI.
So, with 5G, investors not only have the opportunity to get exposure to a trillion-dollar industry (as if that wasn’t enough), they have the potential to get even higher gains from AI stocks.
When such an impressive technology comes to the fore that’s going to allow for transformation, investors should look for companies that are going to use that technology to innovate.
It’s not rocket science, but that simple method is effective at sniffing out 5G stocks with the potential to grow an investment portfolio immensely.
Overall, there are few segments of the tech stock market that I’m as bullish on as 5G. The reason is simple: versatility.
Whether it’s moonshot AI projects that will reap benefits far in the future, or the latest iPhone hitting store shelves, investors have the opportunity to see massive profits from 5G stocks in both the short and long terms.
These stocks are going to help shepherd in a new technological future, and that job pays handsomely.
It’s hard not to be excited when you consider just how monumental 5G stocks could be in the coming years. After all, we’re going witness a mini-revolution in how our day-to-day technologies operate.
Whenever we saw a major transformation like this in the past, the result was a booming tech industry. Which in turn, meant booming tech stock gains.
Overall, the excitement building behind 5G stocks is, in my mind, totally warranted.
The move into 5G technology may not be quite as radical as the shift into the Digital Age was, but it will be a seismic event that will likely send many tech stocks soaring.