Complete guide to 5G
5G technology: how it works
4G vs 5G: how they compare
5G use cases: examples of 5G
5G Dangers: the fact and fiction
5G Internet: will it replace fibre
5G security: the full picture
5G speed: guide and tools
5G deals: get the best offers
5G phones: discover the best
5G networks: in the US and UK
UPDATE: Following the coronavirus outbreak, and subsequent market collapse, it would be advisable to protect your portfolio for the next few weeks, and wait for a clear market uptrend before making new investments. Our stocks advice will return soon.
5G stocks are generating interest amongst investors. The fifth generation of mobile network technology is now upon us, promising to bring stable connections and much faster data downloads. Whatever your smartphone can do now, 5G technology promises to do it much faster and better.
The new network technology has arrived on a small scale already, but is set to launch fully in 2020. Much like 4G, 5G will certainly become the industry standard eventually - which is big news for the stock market. Currently, the 5G market is valued at $131bn (£106bn), with analysts predicting growth of 111% over the next five years.
5G stocks prices are on the up
The launch of 5G will affect a huge number of companies, from mobile networks, to healthcare and gaming. This will consequently boost the stock market as 5G brings new opportunities and revenue streams for companies. 5G stock prices are likely to soar and investors will be reaping the benefits as 5G continues to grow.
However, politics, company acquisitions and the economy can all have a huge impact on the performance of these 5G stocks. What if consumers aren’t keen to make the move to 5G or the government places restrictions on certain companies? Thankfully, we are here to bring you all of the latest news on 5G stocks so you can keep an eye on the market.
5G stock info
Current price: $70.75 (£54.54)
Market cap: $4.15bn (£3.1bn)
Year high: $91.63 (£71.04)
Year low: $37.24 (£28.87)
P/E ratio: 27
Dividend yield: N/A
Hot 5G stock: Cirrus Logic
Cirrus Logic (NASDAQ: CRUS) is a chipmaker that gets over 80% of its total revenue from Apple. And whilst Apple has revealed that its fiscal second-quarter revenue will fall short of expectations due to the coronavirus in China, this is unlikely to affect the long-term growth of the company.
Cirrus celebrated impressive top and bottom line growth last quarter thanks to Apple’s boost to iPhone production in order to meet growing demands. On top of this, a major shift is about to take place thanks to 5G, which will lead to a sharp increase in smartphone sales. For example, research firm Gartner predict that 5G mobile sales are expected to increase to 221 million units this year.
Apple is expected to provide a large chunk of those 5G smartphone sales, putting Cirrus in the perfect position to benefit. Wall Street analysts certainly think so, with 10 out of 11 raising Cirrus’ earnings estimates for the current year and the next.
5G stock info
Current price: $57.16 (£44.06)
Market cap: $236.41bn (£182.18bn)
Year high: $62.22 (£48.27)
Year low: $54.26 (£42.10)
P/E ratio: 12
Dividend yield: 4.3%
Hot 5G stock: Verizon
Verizon (NYSE: VZ) aims to build the "fastest, most reliable 5G network”, and many reports – such as those from the likes of RootMetrics – seem to support these claims. Consumers also seem to agree with Verizon, adding nearly 800,000 mobile customers in 2019 Q4 alone.
The wireless giant produced $35.7 billion in operating cash flow, and $17.8 billion in free cash flow in 2019. These impressive figures have allowed Verizon to pay out a very desirable dividend of almost 4.5%.
The company has an impressive streak of 13 straight years of annual dividend increases, which is very likely to continue. And the introduction of 5G will only further boost Verizon’s growth and the reliable dividend has investors very keen on the stock indeed.
Furthermore, Verizon is doing a great job of finding 5G use cases that it can sell to businesses. The company is currently in talks with Walmart about transforming its stores into 5G-powered healthcare hubs. This would be a huge profit area for Verizon, and could transform a strong stock into a fantastic one.
5G stock info
Current price: $273.29 (£210.42)
Market cap: $167.25bn (£128.74bn)
Year high: $316.32 (£243.56)
Year low: $132.60 (£102.10)
P/E ratio: 60.4
Dividend yield: 0.23%
Hot 5G stock: NVIDIA
NVIDIA (NASDAQ: NVDA) is a chip designer, touting itself as being at the cutting edge of today’s technology. Its graphics cards are hugely popular within the video games industry, entertainment, visual effects, data centres, 5G networks, robotics and even healthcare.
There also seems to be a lot of positives on the horizon, too, with Q1 2021 revenue expected to increase by another 35% year on year. NVIDIA is already a massive company, but the gaming industry is set to boom thanks to the introduction of 5G, making video games more accessible than ever, wherever you are. This means that NVIDIA's chips could be flying off the shelves over the next few years.
Q4 2019 was extremely kind to the company too with a 41% increase in revenue and a 136% increase in adjusted earnings per share. If you are looking to buy for the future, NVIDIA could be a solid choice for investors.
5G stock info
Current price: $292.92 (£225.38)
Market cap: $1.28T (£984.8bn)
Year high: $327.85 (£252.25)
Year low: $169.50 (£130.42)
P/E ratio: 23
Dividend yield: 1%
Prediction: Analyst predicts Apple stock will soar
Apple (NASDAQ: AAPL) shares took a 16.5% tumble over coronavirus fears, but the stock has already righted itself, jumping 9.3% last week, making it the stock’s best one-day rise in more than 11 years.
Wedbush analyst Dan Ives is incredibly bullish on the stock, and believes that it’s set to soar once Apple’s 5G iPhones hit the market. Ives is sticking to his view that Apple is heading for a “super cycle”, that will lead to huge demand for its devices later in the year.
“While the last few weeks has been an exogenous ‘shock event’ to Apple’s ecosystem on both the supply and demand side due to its China exposure,” writes Ives. "We believe this will be short lived as the longer term 5G super cycle thesis and services re-rating remain the crux of our bull thesis on Apple for the next 12 to 18 months.”
Ives also believes that a “perfect storm of demand” is forming for Apple, and that a huge 350 million of the company’s 925 million iPhone customers are “in a window of an upgrade opportunity".
He thinks Apple will sell 215 million to 200 million iPhones in the September 2021 fiscal year, and potentially more than the record 231 million iPhones the company sold in fiscal 2015. This wouldn’t be too shocking with Apple gearing up to embrace 5G.
5G stock info
Current price: $3.66 (£2.82)
Market cap: $20.69bn (£15.9bn)
Year high: $6.42 (£4.94)
Year low: $3.33 (£2.56)
P/E ratio: 1321
Dividend yield: 3%
BREAKING: Nokia changes its CEO and chipmaker
Nokia (NYSE: NOK) had a tough time in 2019 after a number of business decisions led to an incredibly expensive 5G integration. The company had to announce in October that it was pausing dividend payments, and reducing its targets, much to the dismay of investors.
However, the company is determined to turnaround its 5G performance and win back the confidence of investors. This week it was announced that the Nokia CEO, Rajeev Suri, is stepping down from his position on August 31st. He will be replaced by Pekka Lundmark, CEO of energy company Fortum. Lundmark is determined to turn around Nokia’s 5G services and bring success to the company.
On top of this, Nokia has decided to hire chipmaker Marvell Technology to help resolve its 5G problems. If Marvell can help to improve Nokia’s situation, it will place the company in a more competitive position within in the 5G market.