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
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: $420 TWD ($13.78/£10.49)
Market cap: $670bn TWD ($21.9bn/£17bn)
Year high: $452 TWD ($14.81/£11.48)
Year low: $213.50 TWD ($7/£5.42)
P/E ratio: 32
Dividend yield: 2.14%
Hot 5G stock: MediaTek
MediaTek (TPE: 2454) has been on a roll recently with its 5G chips. Just this week, the company has partnered with Intel to deliver the next generation of 5G PCs. Furthermore, MediaTek’s new Dimensity 1000 chipset will support two 5G SIMs on a single handset next year.
With these contracts moving forward, MediaTek sales are expected to grow by 20% in 2020 thanks to its 5G technology. This forecast came in after the reveal of the new Dimensity 1000 chip that should change the game for 5G handsets, making 5G more affordable and efficient.
Its not surprising to hear that MediaTek is a key player in 5G chips, as the company has already invested NT$100 billion on 5G technology development, boasting a team of thousands of research specialists. This is a stock to keep an eye on as we approach 2020, and could return serious growth.
5G stock info
Current price: $1,044 (£794.79)
Year high: $1,151 (£876.25)
Year low: $829 (£631.11)
P/E ratio: 702
Dividend yield: N/A
Hot 5G stock: Samsung
Samsung (LON: BC94) may be a diverse company that sells televisions, laptops and even washing machines, but it will always be known for its smartphones. Its mobile side of business accounts for 40% of revenue, and contributed roughly one-fourth of the total operating profit for 2019's second quarter. It also sells more smartphones than any other manufacturer. So, 5G is set to be a pretty big deal for the company.
According to Kim Jong-ki at the Korea Institute for Industrial Economics and Trade: "Samsung's telecommunications equipment business is expected to perform better in the 5G era as it took the initiative in the newly growing 5G market, as seen in its global market share in the first quarter of this year.”
Samsung is also looking to the future of 5G, and at new ways that it can make use of 5G technology in its products. The company isn’t just looking at 5G for phones, but for automated cars and smart factories. Samsung couldn’t be better placed to benefit from 5G.
5G stock info
Current price: $261.74 (£199.29)
Market cap: $1.16T (£883.4bn)
Year high: $268.25 (£204.24)
Year low: $142 (£108.12)
P/E ratio: 22
Dividend yield: 1.18%
Hot 5G stock: Apple
Apple (NASDAQ: AAPL) has received a price-target rise due to growing 5G iPhone expectations. Despite the fact that 5G iPhones aren’t expected to arrive until late 2020, it appears that the mounting excitement has resulted in a ripple effect throughout the stock market.
So, far from being a bad thing, the decision to hold off on launching its 5G iPhones until 2020 could be reassuring investors, whilst motivating others to buy now. 5G will be much more mainstream by the time the 5G iPhone launches, and consumers will be more likely to upgrade their phones once the network is available with greater coverage.
Investors are likely to buy into the stock early, though, before the company enters the world of 5G. Maybe slow and steady will win the race after all…
5G stock info
Current price: HK$69.25 ($8.85/£6.74)
Market cap: HK$267bn ($34.1bn/£25.9bn)
Year high: HK$86.45 ($11.04/£8.41)
Year low: HK$64.30 ($8.21/£6.26)
P/E ratio: 6.79
Dividend yield: 4.58%
Prediction: Three 5G delay could affect price
Three, owned by CK Hutchison Holdings (HKG: 0001), has delayed its 5G service and doesn’t plan to expand the launch until 2020. This is despite claims from the company that its 5G will be much more widely available by the end of this year.
Three launched its Fixed Wireless Access services on 5G in central London earlier this August, and planned to offer mobile 5G in 25 towns and cities before the end of 2019. This significant delay makes Three the only major UK networks to have 5G availability at such a small scale.
This could potentially get customers to start looking elsewhere to more established 5G networks. Furthermore, this puts Three behind competitors in developing the technology.
5G stock info
Current price: $82.08 (£62.51)
Market cap: $93.72bn (£71.3bn)
Year high: $94.11 (£71.67)
Year low: $49.10 (£37.39)
P/E ratio: 22
Dividend yield: 3%
BREAKING: AT&T’s 5G network will have 4G speeds
Qualcomm (NASDAQ: QCOM) aims to put billions of 5G connections online with its new chips and revolutionise the world of 5G. Earlier this week the company announced the new Snapdragon 765 (5G ready) and 865 (5G via a modem) processors for high-end 5G phones this week.
These chips will allow phones of all price points, and consumers on all budgets, to get their hands on 5G devices. This is a big step forward for the future of 5G, and will propel it exponentially.
The company is expecting 1.4 billion 5G smartphone shipments by 2022, with 2.8 billion 5G connections across the world by 2025.
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