5G Wave Set to Help These Stocks Score Big in 2020
5G is set to proliferate in 2020. The fifth-generation mobile network is touted to revolutionize the way in which we interact with technology, facilitating faster download speeds and seamless transfer of data.
Per Cisco’s Annual Internet Report, by 2023, the average 5G speed will be 575 megabits per second, or 13 times faster than the average mobile connection.
While global mobile operators are eyeing expansion of 5G network footprint, device manufacturers have leapfrogged their plans to roll out 5G-enabled devices for market dominance.
The global 5G technology market is estimated to be $5.53 billion in 2020 and reach $667.90 billion by 2026, witnessing a CAGR of 122.3% during 2021-2026, per an Allied Market Research report.
Rising consumer demand for bandwidth due to massive increase in video consumption and the ongoing digital transformation are aiding rapid proliferation of 5G. Low latency of 5G is a key catalyst in this regard.
Intensive infrastructure investments for 5G and favorable trial results are positives in this regard. Smart connected homes, hospitals, factories and cities along with self-driving vehicles remain key beneficiaries of 5G.
5G is expected to further facilitate rapid adoption of IoT and connected smart-based devices, along with emerging applications like AR, VR and AI. Moreover, 5G enables advanced technologies in the IoT space, for instance, extending sensor driven IoT capabilities to drones, actuators and robots.
As such, 5G infrastructure and market is expected to witness a CAGR of 67.1% to reach $47.78 billion by 2027, per a Research and Markets report. Moreover, according to Verified Market Research report, the global 5G chipset market is valued at $1.96 billion in 2020. The market is projected to reach $21.87 billion by 2026 at a CAGR of 44.1% during 2021-2026.
Technology Players Poised to Benefit From 5G
Let’s delve deep to find out what technology stalwarts are doing to bring 5G mainstream in 2020.
Qorvo QRVO is currently supplying products for more than 20 5G field trials. The company has introduced Front-End Modules (FEMs) that can function on both pre-5G and 5G architecture. Its GaN technology also enables FEMs to support the emerging 5G infrastructure.
Qorvo recently unveiled gallium arsenide (or GaAs) FEM, QPF4010, to aid 5G millimeter wave (mmWave) base stations in supporting additional capacity.
In the last reported quarter, this Zacks Rank #1 (Strong Buy) increased shipments of 5G massive MIMO infrastructure solutions to various OEMs. Notably, the company commenced shipments of BAW filters to a top-tier infrastructure OEM supporting China Mobile’s 5G small-cell deployments.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Qorvo, Inc. Revenue (TTM)
Qorvo, Inc. revenue-ttm | Qorvo, Inc. Quote
Skyworks SWKS offers a broad portfolio of RF solutions used in infrastructure, aerospace, and the IoT ecosystem. This Zacks Rank #2 (Buy) company’s IoT portfolio includes SKY68020-11, SKY68001-31, SKY68001-41, SKY68018-11 and SKY77368-11 multiband RFFE modules, supporting up to Power Class 3 (+23 dBm) half-duplex transceiver platforms.
These solutions are designed for global 5G Massive IoT network deployments in low-band and mid-band frequencies in addition to providing 2G backward compatibility, either natively or through auxiliary ports.
Skyworks Solutions, Inc. Revenue (TTM)
Skyworks Solutions, Inc. revenue-ttm | Skyworks Solutions, Inc. Quote
QUALCOMM QCOM recently announced Snapdragon X60 5G Modem-RF System, its third-generation 5G modem-to-antenna solution. The Snapdragon X60 features the world’s first 5nm 5G baseband and is the world’s first 5G Modem-RF System to support spectrum aggregation across key 5G bands and combinations including mmWave and sub-6, using frequency division duplex and time division duplex.
Snapdragon X60 also features the new Qualcomm QTM535 mmWave antenna module, engineered for superior mmWave performance. This Zacks Rank #2 stock is set to ship samples of Snapdragon X60 and QTM535 in the first quarter of 2020.
Notably, Samsung will use new Qualcomm X60 5G chips on its 5nm process and may also supply modem chips on the same process, according to media reports.
Qualcomm estimates that 175 million to 225 million 5G smartphones will be sold in 2020. Its X60 chips will aggregate signals sent over disparate frequencies in different 5G networks, thus speeding up downloads.
QUALCOMM Incorporated Revenue (TTM)
QUALCOMM Incorporated revenue-ttm | QUALCOMM Incorporated Quote
Broadcom AVGO is benefiting from strong demand for its wireless solutions and expansion of its product portfolio. The company’s 5G switching portfolio that includes six devices namely Monterey, Quartz, Qumran2a, Jericho2, Jericho2c, and Ramon is designed to meet high-performance requirements of new Ethernet-based 5G New Radios and base stations.
The Zacks Rank #2 company’s recent multi-year agreements with Apple AAPL are estimated to be worth $15 billion.
Broadcom Inc. Revenue (TTM)
Broadcom Inc. revenue-ttm | Broadcom Inc. Quote
Intel INTC boasts opportunities in the core network and at the edge. 5G rollout is expected to boost demand for ‘network cloudification.’ The company’s 10 nm Snow Ridge system on a chip technology is expected to power 5G-base stations early next year.
Notably, the company secured contracts from two large telecom equipment manufacturers with this architecture. By 2022, Intel forecasts having 40% market share.
In the fourth quarter, the Zacks Rank #2 company inked a partnership with Alibaba to support both Tokyo and Beijing Olympics with 5G infrastructure. To this end, the company will be utilizing the Xeon scalable Optane persistent memory and its software.
Intel Corporation Revenue (TTM)
Intel Corporation revenue-ttm | Intel Corporation Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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Intel Corporation (INTC) : Free Stock Analysis Report
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