Investors often perk up when they hear the word “billions” in relation to market cap. But that’s very 2019. This next decade, we need to keep our ears trained for the word “trillion.” And that’s where 5G comes in. 5G stocks could soon be fighting over a market worth trillions of dollars…and that should have investors very excited.
5G, if you haven’t heard of it already, is the next step in the evolution of digital cellular technology. The fifth generation of wireless technology for digital cellular networks, to be exact.
Phones and network providers will be looking to have 5G dominate the global marketplace in the coming decade, with the first 5G networks having gone up in 2019.
Right now, many put the value of the 5G market in the billions; a healthy sum by any standard.
But some projections have that number eclipsing $1.0 trillion within a few years.
So, being on the ground floor of 5G stocks could be one way to see potentially immense profits in one’s portfolio as the industry grows from pedestrian billions in revenue to trillions in income around the globe.
You see, the fact is that the immense speed 5G will herald in when it completes its takeover of the cellular space will require a lot of overhauling.
From more cell towers being built to other infrastructure needs…from companies stuffing their product lines with 5G gadgets (more on that below) to the tech being used to supplement all manner of other innovations (think Internet of Things and data processing)…5G has the power to redefine so many different technologies in our world. And with that power comes the potential of great profit.
Consider that industry heavyweights are going all-in on 5G tech.
Apple Inc (NASDAQ:AAPL), never one to be left behind in a tech arms race, has already made plans to adopt 5G into its product line, with the express belief that it will help increase sales of the “iPhone.” (Source: “Apple has a new biggest bull on Wall Street as 5G iPhone launch approaches,” CNBC, January 13, 2020.)
Wall Street analysts believe that 5G could lead to another surge in cell phone sales, an exciting prospect for phone makers. Expect to see bigger investments made in the space in 2020 as the industry continues to grow.
“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,” D.A. Davidson analyst Tom Forte said in a note. (Source: Ibid.)
And that hype won’t stop with Apple. Many other companies are going to look to 5G companies to help them gain a competitive advantage as this new tech hits the market.
5G stocks, as a result, could be some of the hottest tech stocks on the market in the coming years.
Expect to see 5G stocks soar in value; they might show gains of double, even triple their value as the market balloons in size when the switchover from 4G gets underway in earnest.
Many 5G stocks, both those on the smaller side as well as massive companies like Apple, looking to take advantage of this brand new tech will see impressive gains.
Meanwhile, giants like AT&T Inc. (NYSE:T) are looking to expand 5G 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.)
The fact is that 5G is spreading. The important question, then, is how does an investor best position themselves to profit?
Profiting from 5G Stocks
5G tech isn’t only going to allow us to have faster download speeds on our smartphones; it’s going to open up a number of avenues towards innovation in already established industries, such as data processing and the Internet of Things.
With this blazing fast network speed, 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.
There’s a big concern over cybersecurity due to the immense power of 5G. Some even believe that its super speed will make many of our current cybersecurity measures in place obsolete (opening the door for a booming cybersecurity sector, but that’s another story altogether).
In order to get the most in potential profits from 5G, then, it’s best to look at companies operating in that juicy cross-section between 5G and innovative tech.
For instance, companies that are operating in, say, the AI market (which is in itself a trillion-dollar industry) will benefit greatly from being able to send and receive data at the lightning fast speeds 5G promises. Companies that are best able to integrate 5G technology into their budding AI systems will then see the potential to make huge gains.
In other words, when you have such an impressive technology coming to the fore that is going to allow for transformation, look for companies that are going to use it to be innovative. It’s not rocket science, but this simple method is effective for sniffing out 5G stocks with the potential to grow your portfolio immensely.
The future of tech is going to rely on 5G. That’s a forgone conclusion. Companies worth billions of dollars are already gearing up for the innovative tech to come in and cause innovative rifts in the industry.
With that in mind, investors need to be keenly aware of the best 5G stocks in order to maximize profits during this changing of the tech guard, so to speak.
Whenever tech stocks are introduced to exciting new developments like 5G, we often see a lot of stocks register huge gains in the aftermath. There’s no reason to expect this time will be any different.
For that reason, I believe that the future trillion-dollar 5G stock market could make some investors very rich.