The transition from 3G to 4G has primarily concerned communications stocks such as Verizon Communications Inc. (NYSE: VZ) and AT&T (NYSE: T), and the transition to 5G is no exception.
Verizon’s 5G nationwide mobile network is available in more than 2,700 cities as the network continues to expand. The 5G Ultra Wideband network uses high-band (mmWave) and mid-band (C-band) spectrum and is up to 10 times faster than the national network. When your phone is outside of 5G coverage, it will automatically switch to 4G LTE mode.
AT&T is the largest wireless communications provider in the United States, with 44.8% of the country’s wireless subscribers, and provides communications, media and technology services worldwide. It offers a range of devices and service plans and is leading the transition to 5G. The company’s 5G service is divided into three tiers to unlock the full potential of the technology: Base AT&T 5G uses lower bands for broader coverage and reaches 281 million people in 22,000 cities. Higher-end 5G+ uses mmWave and reaches 45 major metropolitan areas, stadiums and other high-traffic areas. 5G+ in C-band provides faster speeds and wider coverage.
The introduction of 5G technology is transforming a variety of sectors and industries, including semiconductors, equipment and infrastructure, real estate investment trusts (REITs), streaming services, media companies, video games, cloud computing, healthcare, etc. By investing in these companies and sectors, investors can capitalize on the potential of 5G technology to revolutionize the way we connect and interact with the digital world.
semiconductor
Like most technologies, the building blocks of 5G are tiny computer chips that enable processors to calculate data and carry out commands.
Qualcomm Inc. (NASDAQ: QCOM)
Qualcomm is a major player in the semiconductor industry, providing chips essential to 5G technology. Its Snapdragon processors are widely used in 5G-enabled smartphones and are a key part of the 5G ecosystem.
NVIDIA (NASDAQ: NVDA)
Best known for its GPUs, Nvidia also plays a key role in 5G infrastructure, with its processors supporting data center and AI applications that are crucial to the enhanced capabilities that 5G will offer.
Skyworks Solutions (NASDAQ: SWKS)
Skyworks provides analog semiconductors optimized for next-generation 5G wireless infrastructure applications, supplying chips for front-end modules and radio frequency systems, including Apple’s 5G iPhone RF front-end module, positioning Skyworks as a key supplier in the 5G space.
Facilities and infrastructure
Before a wireless signal can reach a connected device, it must pass through a network of underlying hardware, including fiber optic wires. This network is invisible to consumers but is essential to making 5G work.
Corning Incorporated (NYSE: GLW)
Corning is supplying fiber optic cables essential to 5G networks. The company’s innovations in glass and fiber optic technologies are essential to building a robust 5G infrastructure.
Ciena Corporation (NYSE: CIEN)
Ciena provides critical network systems, services and software that will improve the speed and performance of 5G networks. Our technology is essential to the seamless operation of 5G infrastructure.
Real Estate Investment Trusts
5G requires a new network of mini-towers and other fixed assets, creating an opportunity for REITs that own and operate the core real estate needed to expand 5G networks.
American Tower (NYSE: AMT)
American Tower manages the real estate needed for 5G infrastructure, providing growth and revenue opportunities. The company’s extensive portfolio of communications sites is essential to the rollout of 5G.
Crown Castle (NYSE: CCI)
Crown Castle owns and operates a vast communications infrastructure network, including small cells and fiber, that is essential for the widespread deployment of 5G technology.
Media Companies and Streaming Services
These companies produce and stream movies, music, and other programming. 5G technology will also benefit social media companies.
Netflix (NASDAQ: NFLX)
The widespread adoption of 4G has enabled Netflix to thrive, and the enhanced capabilities of 5G will further improve streaming quality and user experience. Netflix continues to innovate in content delivery by taking advantage of 5G’s faster speeds and lower latency.
Disney (NYSE: DIS)
Disney has an extensive range of streaming services and will benefit from 5G’s capabilities to deliver high-quality content more efficiently, improving the viewing experience for its vast subscriber base.
Comcast Corporation (NASDAQ: CMCSA)
Comcast is benefiting from 5G by enhancing its broadband and streaming services through its Xfinity brand and subsidiary NBCUniversal. The company’s Peacock streaming service can take advantage of 5G to provide subscribers with a smoother streaming experience and better content delivery.
Warner Bros. Discovery Inc. (NASDAQ: WBD)
Warner Bros. Discovery, which includes brands such as HBO Max and Discovery+, will use 5G technology to enhance streaming capabilities and deliver richer content experiences. The increased bandwidth and reduced latency of 5G networks will support higher quality video and more interactive content features.
video game
5G technology will enable faster download speeds, lower latency and an enhanced cloud gaming experience, making high-quality games more accessible and seamless to play on mobile devices.
Activision Blizzard (NASDAQ: ATVI)
Activision Blizzard is poised for growth as 5G enables better gaming experiences with lower latency and faster speeds, which is key for both mobile gaming and cloud-based gaming services.
Electronic Arts (NASDAQ: EA)
Electronic Arts will also benefit from the improved connectivity and performance that 5G will provide, enhancing its gaming platform and user experience.
Cloud Computing
5G will enable faster and easier communication with cloud platforms and cloud-based applications.
Amazon (NASDAQ: AMZN)
Amazon’s AWS will benefit from faster, more reliable communications with its cloud platform, which will enable faster data processing and real-time applications that are important for a range of 5G-enabled technologies.
Microsoft (NASDAQ: MSFT)
Microsoft’s Azure cloud services will also be enhanced with 5G, improving the performance of enterprise applications and IoT devices.
health care
Telemedicine, virtual reality, and advances in AI in healthcare will be expanded with 5G, improving patient care and diagnosis in remote locations.
Teladoc Health, Inc. (NYSE: TDOC)
Teladoc Health is improving the quality and accessibility of its telehealth platform with 5G technology, providing virtual medical consultations and remote patient monitoring.
Medtronic (NYSE: MDT)
Medtronic is using 5G to power remote monitoring systems for patients with chronic diseases, providing more accurate data and timely medical interventions.
Combination: Infrastructure, Semiconductor, Service Providers
LM Ericsson Phone Support (NASDAQ: ERIC)
Headquartered in Stockholm, ERIC is a multinational network communications company providing infrastructure and network services in over 180 countries worldwide. It has a portfolio of over 40,000 patents. Its 5G intellectual property (IP) portfolio helps provide end-to-end 5G network construction solutions by upgrading existing networks. Ericsson has contracts with the world’s largest telecommunications providers, including a $3.5 billion deal with T-Mobile and Verizon’s selection of the company for its fixed 5G network rollout in 2017. Ericsson also built 65% of AT&T’s 4G mobile network.
Nokia (NYSE:NOK)
Finland-based Nokia offers RAN products and services from 2G to 5G technologies and has strengthened its position in the 5G market by signing major 5G deals with companies such as Reliance Jio, India’s largest mobile carrier, and Bharti Airtel.
