10 Best 5G Stocks to Invest in 2022

In this guide, we will be discussing the best 5G stocks and why to invest. 5G is the newest technology for wireless networks. In 2018, 5G networks made their way into the United States. They are faster and have more capacity than the previous 4G network.

New wireless technology brings along the possibility of technologies that can change the way consumers, businesses, governments, and other groups do things.

There has been huge interest in 5G around the world. Different telecommunications companies and countries have been competing to build the biggest 5G networks for the last few years. Investors may be wondering how to take advantage of this.

Many small businesses and larger industries can benefit from 5G technology, which gives investors a lot of ways to make money. But investors should also be aware that 5G could have some problems, such as security issues.

What does 5G mean?

5G is different from other wireless network technologies because it is faster. It works on a larger part of the radio spectrum, which makes it easier for wireless devices to send signals. 

As of 2022, all major U.S. carriers have 5G deployments covering at least 200 million people. All of the top-of-the-line smartphones made by the biggest companies in 2021 were able to connect to 5G.

As with other types of wireless technology, 5G has different versions, such as millimetre wave and low band. Millimetre waves have very fast speeds over short distances, while the low band has slower speeds but a wider range.

How can you invest in 5G?

One quick way to invest in 5G is to look for telecommunications and tech companies that are likely to make popular devices that can connect to 5G. 

In the past few years, big wireless networks like Verizon Communications Inc. (VZ) and T-Mobile US Inc. (TMUS) have worked hard to set up big 5G networks. They attract customers who want faster speeds and the newest technology. 

Companies that make popular 5G-enabled devices or key parts for those devices, like chips or 3D inspection systems, are another possible access point. 

Investors who want more diversity may focus on mutual funds, exchange-traded funds (ETFs), or real estate investment trusts (REITs) that invest in this area. 

Within these choices, investors can choose broader vehicles, like the Technology Select Sector SPDR ETF (XLK), which invests in all tech stocks in the broader S&P 500. 

Investors can also focus on a field with a stronger connection to 5G. One example is the Pacer Benchmark Data and Infrastructure Real Estate SCTR ETF (SRVR). It is an ETF that invests in REITs for data centres and cell phone towers.

List of 10 best 5G stocks to buy now

Below is a quick list of the ten best 5G stocks worth investing in. Let's have a discussion about it below: 

1. Apple Inc. (NASDAQ: AAPL)

Market Cap: $2.3 trillion

Apple Inc. (NASDAQ: AAPL) Company is one of the biggest companies in the world that makes technology.

By the end of Q1 2020, Apple iPhone sales will have been better than expected, coming close to $56 billion. Since September 2019, buybacks and dividends of more than $24 billion have helped AAPL stock rise by 40 percent. 

The launch of Apple's iPhone 13 models with the latest 5G could push the company's market cap up to $3 trillion by the end of 2021.

The iPhone 13 models from Apple have made more people want 5G modems that work with mmWave. Reports say that Apple will give iPhone 13 users worldwide a huge boost in 5G performance after limiting the best 5G performance to the US-only iPhone 12 Pros.

Apple's market cap is currently $2.4 trillion. And analysts' views on AAPL stocks show a 12-month price forecast with a median target of $162. 

The company has a high target of $185 and a low target of $90. And the median estimate of $162 is a 7 percent increase over prices in the middle of 2021.

2. QUALCOMM, Inc. (NASDAQ: QCOM)

Market cap: $166.04 billion

QUALCOMM, Inc. (NASDAQ: QCOM) is based in the US. It's a multinational company that makes semiconductors and equipment for telecommunications.

QCOM is the top supplier of microprocessors in China because it has few competitors. It will also supply chips for the new series of Apple 5G iPhones. 

The company also wants to make and sell several 5G development platforms, such as new robotics products that use AI and focus on 5G connectivity.

In comparison to the last year, Qualcomm's sales grew by 63%, and the company's profits per share more than doubled. The company's fiscal quarter ended on June 27, and the company's sales grew by 63%. 

Thus, the company that makes chips reported third-quarter results that were better than analysts expected and gave a good outlook for the fourth quarter.

Also, Qualcomm's QCT semiconductor division made $6.47 billion in sales, which is a 70% increase from the year before. 

The sales of RF's front-end grew by 114 percent from one year to the next, to $957 million. This made it the QCT category with the fastest growth. An important part of 5G is the RF front-end chip.

3. Broadcom (NASDAQ: AVGO)

Market cap: $195.22 billion

Broadcom (NASDAQ: AVGO) Company is one of the largest companies in the world that makes semiconductors. It is currently third in the world, behind Intel and Qualcomm.

Broadcom is currently doing well because of the 2021 5G upgrade cycle. The semiconductors that Broadcom makes are a key part of putting in place new 5G networks.

Broadcom said in February 2020 that it had finished a new 5G switching portfolio to meet the new standards for 5G technology. Forbes mentioned Broadcom in March as a market leader in 5G infrastructure.

In June, it was announced that Broadcom would be providing 5G chips for the new Nokia ReefShark product line.

Broadcom has stepped up its game because there is more demand for semiconductors. The chipmaker's Q2 sales increased by 15% from last year to $6.6 billion!

Their adjusted earnings per share went from $5.14 per share at the same time last year to $6.62 per share in Q2 of fiscal 2021.

4. Skyworks Solutions Inc (NASDAQ: SWKS)

Market cap: $29.35 billion

Skyworks Solutions Inc. (NASDAQ: SWKS), like many other stocks in this 5G roundup, makes important tech solutions for the 5G industry's future.

SWKS is doing a lot of research and development on new chips that will power 5G connectivity for the next generation of smartphones. They even introduce 5G infrastructure and powerful WiFi 6 technology for various consumer devices.

Skyworks Solutions is important because it has no debt. At the end of March 2020, the company's short-term investments were worth $1.1 billion. 

Skyworks Solutions sold more than just 5G. They also sold industrial equipment and smart devices, which made up about 30% of all sales as of Q2 2020.

5. Intel Corporation (NASDAQ: INTC)

Market cap: $213.94 billion

Intel Corporation (NASDAQ: INTC) is one of the biggest tech companies in the world. It is currently in a very strong position to dominate the market for 5G technology in the future.

Intel announced a new line of chips for 5G network infrastructure in February 2020. The new chip is aimed at 5G base stations with high bandwidth and low latency. Intel thinks there will be a market for over 6 million new 5G base stations by 2024.

Intel's size has grown by 40% since 2014, and the company's revenue has gone from $1 billion to $4 billion in 2019. The upcoming global rollout of 5G is expected to increase demand for cloud-based network services, of which Intel is currently the market leader.

6. CEVA (NASDAQ: CEVA)

Market Cap: $1 billion

Ceva (NASDAQ: CEVA) has become one of the best stocks in the 5G technology sector. Ceva Inc, the company behind it, is a technology company based in the US that focuses on semiconductors.

The company recently won the CEM Editor's Choice Award for its Bluetooth 5 IP, part of China's most competitive IoT solution. Also, early this month, Ceva announced its first high-performance Sensor DSP Hub, called SensePro. 

According to the analysts, the price targets for Ceva over the next 12 months are $60 (high forecast), $50 (low forecast), and $44 (average). The average estimate for Ceva would mean prices would be 28% higher than in the middle of 2021.

7. Verizon Communications Inc. (NYSE: VZ.)

Market Cap: $231.42 Billion

Verizon Communications Inc. (NYSE: VZ) has named itself one of the best 5G companies. And its stock is one of the best ones with a bright future.

Verizon Communications also offers internet, video, and voice services for homes and virtual networks to mobile virtual network operators. 

The company had about 95 million wireless retail connections at the end of 2019. Six million broadband and 4 million Fios video connections have been part of the company. 

It also offers a variety of management and data security services, domestic and global voice and data solutions like voice calling, messaging services, conferencing, contact centre solutions, and private lines.

As of December 31, 2019, this segment had 25 million wireless retail postpaid connections and 489 thousand broadband connections. 

It is expanding its reach through a strategic partnership with HERE Technologies, Dignitas, and Emory Healthcare to develop and test 5G Ultra Wideband-enabled use cases.

The average price for VZ stock over the next 12 months is expected to be $61.80, with a high of $68.00 and a low of $50.00. So, most experts think Verizon is a good buy, with an average price target of 10% more than its price in the middle of 2021.

8. Nvidia Corporation (NASDAQ: NVDA)

Market Cap: $481.27 billion

Nvidia Corporation Company is an American global technology company. The company has its headquarters in Santa Clara, California. Its stock symbol is NVDA.

The 5G, the Internet of Things (IoT), and edge computing make networks work much better. 

Top telecommunications companies use Nvidia's technology to build a software-defined infrastructure to deliver intelligent services. This is so they can keep up with the need for more memory and processing power.

Nvidia said that its sales for the first quarter of 2021, from January to May, will be the highest ever, with a year-over-year increase of 84% and a quarter-over-quarter increase of 13%. 

Also, the company made $5.66 billion in sales, with new highs in the Gaming, Data Centre, and Professional Visualisation platforms.

Nvidia is worth $481.27 billion on the market, and experts predict that its stock will be worth $212 in a year, with a high estimate of $250 and a low estimate of $150. The median prediction of $162 means that prices will have gone up by 9% by the middle of 2021.

9. Comcast, Inc. (CMCSA: NASDAQ)

Market Cap: $272.86 billion

Comcast Corporation, which is based in Philadelphia and is listed on the NASDAQ as CMCSA, is a big name in American communications.

In July, Comcast said it made a net income of $3.7 billion on sales of $28.5 billion. Because it made more money than expected, it grew by more than 20% compared to the year before.

With the addition of 380,000 new customers, the company reached 33.5 million customers for the first time. Comcast's market capitalization is $272.86 billion.

Analysts predict that the stock will be worth $66 in 12 months, with a high estimate of $72 and a low estimate of $59. The average prediction of $66 means that prices will have gone up by 12% by the middle of 2021.

10. MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI)

Market Cap: $3.94 billion

MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) is another American technology company.

Early this month, MACOM announced a new technology. It's a dual-channel 96 Gbaud trans-impedance amplifier (TIA) and a quad-channel modulator driver for 600Gbps and 800Gbps Optical Networking Applications.

According to what analysts think about MTSI stock, the average price target over the next 12 months is $72.33. It is also expected to go as high as $75 and as low as $70. 

Most analysts think MACOM is a good buy, and their average price target for the company is a 25% increase from where it is now (mid-2021).

What are the advantages of investing in 5G stocks?

A few major advantages which you can experience by investing in 5G stocks are:

1. Chances of steady growth

Investors are always looking for industries that are likely to do well in the future. At the moment, the telecom industry has a steady growth rate. 

We all know that there are no guarantees when it comes to investing in stocks. Still, looking at the top companies in a healthy sector that show strong future demand is a good start.

2. Other industries will benefit.

The telecom industry provides an essential service that will only become more important over time. Everyone can see the benefits of faster internet. 

Faster internet means faster downloads. This makes it quicker and easier for people to use media, data farms, and banking services.

Along with the entertainment industry, faster internet helps big factories work together better, change designs more quickly, and improve their supply chains. 

Remote devices can talk to each other over long distances. This lets mining operations get more data and produce more. AI will make a huge step forward when the stages of gathering data and putting it all together happen faster.

3. Profitability in the future

The internet is changing very quickly. The 6G internet is already being made, and people should be able to use it between 2040 and 2050. Companies currently helping Europe roll out 5G could make money for decades.

Does investing in 5G stocks have any drawbacks?

Now let's highlight a few major drawbacks which can come across when investing in 5G stocks:

1. Costs to the company

Buying a licence for a piece of the spectrum is the biggest thing that stands in the way of 5G's growth. 

Companies need 5G licences in every country they want to do business in if they offer services there. And since most governments give contracts to the companies that bid the most, smaller companies are often left behind.

2. 6G is coming

If you look at the space right now, you can see that the rate of innovation has sped up a lot. Over decades, big changes often happened. 

But things change quickly because a lot of money and time is being put into making the internet work better and make more money.

This means that when 6G comes out, the 5G expansion could become quickly out of date. There is no way to predict what will happen in the tech space. This could promptly put out of business businesses that don't change fast enough.

Best 5G stocks: final thoughts 

5G wireless is the fastest wireless technology that has ever been made. Thus, it's a big change and gives investors exciting options. It comes with risks and probably won't be fully implemented for years. 

Still, this technology could help many companies in many fields, from internet service providers to automakers to companies that work on artificial intelligence.