Those looking for good stocks to buy and investments for the future must look to the technology sector, especially the development of 5G: Nokia, Qualcomm and Xilinx are pioneering companies and theirs are among the best 5G stocks to invest in.
The development of 5G networks in the coming years will be an important factor for technological growth in many countries, therefore also for investments, in particular as regards infrastructures and devices. According to a recent market research report, it is estimated that from this year the 5G chipset market will expand at a compound annual growth rate (CAGR) of 52.7% and in 2027 will be worth approximately $ 23.5 billion.
Expectations of rapid growth for the 5G market are based primarily on the growing demand for high-speed data services, rapidly developing smartphone technology, as well as the growth of the IoT and connected devices. However, market growth is partly limited due to expensive equipment, a fragmented spectrum harmonization model and emerging cybersecurity problems: for these reasons, investments in 5G have very large room for growth.
Among the consequences of the Covid crisis there is also the slowing of the 5G adoption process in the world, but it has had an almost insignificant effect because 5G is an emerging technology and only a few sectors use such network services. Additionally, due to the pandemic, smartworking has grown and many more companies need to work on remote servers, which requires a high-speed data connection and lower latency. This will also have a positive effect on 5G in terms of demand.
Stocks to buy to invest in 5G
It is now clear that investments in technological sectors are among the musts of these years, precisely because of the developments expected in the next decade. There are two main lines to follow: artificial intelligence (in this regard you can read the article “10 Artificial Intelligence stocks to invest in“) and 5G. Whether it is bonds or stocks, as in the following three cases, do not miss the opportunity.
Why buy Nokia shares to invest in 5G
Nokia (EPA: NOKIA) is already benefiting from the UK’s decision to stop Huawei from supplying its 5G equipment to telecom companies. The Finnish company has agreed on an agreement to provide its 5G BT equipment and services.
Nokia’s share price fell around 30% from its August highs due to a major market correction. The shares closed lower for the sixth consecutive week as they approached 3.05, offering an important buying opportunity. Levels above the 4.00 threshold will be targeted by the bulls (data updated as of 5 October 2020).
Buy Qualcomm stock, a leader in 5G infrastructure
Qualcomm (NASDAQ: QCOM) is certainly one of the first candidates to benefit from the 5G revolution. The company has filed nearly 700 patents, including Snapdragon chips in its flagship products, which are widely used in the mobile phone industry.
In August 2020, Qualcomm’s shares price rose to an all-time high near $ 124. Either way, a withdrawal of up to $ 96 would provide a huge opportunity to invest in Qualcomm stock and benefit from the company’s role in launching the 5G infrastructure.
Xilinx shares good 5G investment
Xilinx revenues (NASDAQ: XLNX) have grown steadily in recent years as the company manufactures semiconductor devices used in a wide variety of industries. The price of Xilinx shares jumped around 50% from its March lows as buyers aim to capitalize on the broken descending trend line. The first upside target is $ 116, signaling a rapid rally of more than 10%.