If you’re looking for 5G stocks that have the potential to enrich patient investors, consider these overlooked hidden gems. These companies are either directly involved in the development and deployment of 5G technology or are poised to benefit greatly from its widespread adoption.
As a broader indicator, S&P 500 And that Nasdaq If stock prices continue to rise, the valuations of these companies will follow suit, making them attractive investments. Additionally, investing in these stocks coincides with the growing trend toward smart cities, where technology improves quality of life through efficient transportation, sustainable energy, and smart infrastructure.
Here are three 5G stocks for investors to consider: These companies are at the forefront of urban development and technology, making them promising options for those looking to capitalize on the future of innovation.
Along with renewable energy, 5G is one of the last untapped supercycles on the horizon, and these companies could offer significant capital appreciation potential for investors willing to play the long game.
Advanced Micro Devices (AMD)
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Advanced Micro Devices (Nasdaq:Am) has a strategic focus on advanced processors and 5G technologies, supporting its long-term growth potential.
The company’s products, including Ryzen Embedded processors and Versal adaptive SoCs, are designed to meet the stringent demands of 5G infrastructure. These technologies support the development of low-latency, highly efficient systems essential for 5G networks.
In the first quarter of 2024, AMD reported revenue of $5.5 billion, up 2% year over year. Gross margin was 47% and operating income was $36 million. On a non-GAAP basis, AMD’s gross margin was 52%, operating income was $1.1 billion and net income was $1.0 billion.
The performance was supported by data center and client segments, each growing by more than 80% year-over-year, driven by the MI300 AI accelerator and increasing adoption of Ryzen and EPYC processors.
Verizon Communications (VZ)
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Verizon Communications (New York Stock Exchange:VZ) is a leader in the 5G field, offering widespread coverage and high reliability. It offers a stable dividend yield, making it a strong choice for income-focused investors. VZ has a dividend yield of 6.7%.
The company’s 5G network will support high-speed connectivity and low-latency services that are essential for a variety of applications, including mobile broadband, IoT and enterprise solutions.
In the first quarter of 2024, Verizon reported total consolidated operating revenues of $33 billion, up just 0.2% from the same period in 2023. Pricing initiatives and increased adoption of premium pricing plans drove the growth, despite a partial offset by a decline in wireless equipment revenues. The company achieved total wireless services revenues of $19.5 billion, up 3.3% year over year.
Verizon offered an upbeat outlook for 2024. The company expects wireless service total revenue to grow 2.0% to 3.5% and adjusted EBITDA to grow 1% to 3%. Verizon’s adjusted earnings per share (EPS) are projected to grow 1.5% to 3.5%.Per share) Guidance range is $4.50 to $4.70.
Skyworks Solutions (SWKS)
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Skyworks Solutions (Nasdaq:Swift) supplies analog semiconductors essential to 5G infrastructure, including components for 5G smartphones.
An integral part of the 5G ecosystem, Skyworks supplies RF components essential for fast and reliable wireless communications. The company’s products are found in a wide range of 5G devices and infrastructure, from smartphones to base stations. Skyworks’ advanced RF solutions address the complex requirements of 5G networks.
Skyworks reported second-quarter fiscal 2024 revenue of $1.046 billion, slightly above guidance. EPS of $1.55 was also above expectations. The company generated operating cash flow of $300 million. For the third quarter of fiscal 2024, Skyworks expects revenue of $900 million to $900 million, plus or minus 2%, with gross margins of 45% to 47%. Expected EPS is approximately $1.21 at the midpoint of the revenue range.
Skyworks Solutions has received favorable reviews from analysts, with the overall consensus pointing to a favorable outlook due to the company’s strategic position in the 5G market and strong financial position.
Marvel Technology (MRVL)
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Marvel Technology (Nasdaq:MRVR) is focused on semiconductor solutions for 5G networks and has established itself as a key supplier in the fast-growing 5G market.
For fiscal year 2024, Marvell reported net revenues of $5.58 billion. The company experienced a GAAP net loss of $933.4 million, or $1.08 per diluted share. However, Marvell achieved non-GAAP net income of $1.31 billion, or $1.51 per diluted share.
In the fourth quarter alone, Marvell generated revenue of $1.427 billion, driven by strong growth in the data center market, which grew 38% sequentially and 54% year-over-year.
Looking ahead to the first quarter of fiscal 2025, Marvell expects continued growth in data center revenue, with initial shipments of its cloud-optimized silicon program for AI complementing its electro-optics franchise. The company forecasts net revenue of approximately $1.15 billion and non-GAAP gross margins of 62% to 63%.
Ericsson
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Ericsson (Nasdaq:Eric) is at the forefront of global 5G infrastructure development and is continuously innovating to stay competitive.
The company’s technologies are essential to building the high-performance, programmable networks that are essential for the digitalization of society. Ericsson solutions support 5G applications such as network slicing, telecom AI and Cloud RAN.
Ericsson reported net sales of SEK 53.3 billion in the first quarter of 2024, down 15% year-on-year. Gross margin improved to 42.5% from 38.6% in the first quarter of 2023. The company achieved an EBITA margin of 9.6% and free cash flow of SEK 3.7 billion. Despite the decline in sales, Ericsson strengthened its gross margins and operational efficiency.
Ericsson expects its Enterprise Wireless Solutions division and Global Communications Platforms to drive growth, although the company is cautious about near-term market conditions and has signaled a strong presence in 5G.
Intel (INTC)
Intel (Nasdaq:International Trade Commission) is investing heavily in 5G technology and aims to become a major supplier of processors and other components crucial to 5G networks.
The company’s focus on private 5G networks highlights its strategic focus on providing end-to-end solutions for enterprise customers. Intel’s hardware and software portfolio, including processors, supports a range of 5G applications.
For the first quarter of 2024, Intel reported revenue of $12.72 billion, slightly below the consensus estimate of $12.76 billion. The company posted a GAAP net loss of $0.06 per share, below analysts’ expectations of a loss of $0.03 per share. Despite these challenges, Intel delivered strong revenue growth in its PC chip division, which posted a 33% increase due to a recovery in PC sales.
Intel forecast revenue of $12.5 billion to $13.5 billion for the second quarter of 2024. The company expects GAAP gross margin to be 40.2% and non-GAAP gross margin to be 43.5%.
Cisco Systems (CSCO)
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Cisco Systems (Nasdaq:Central Intelligence Agency) Private 5G services for multiple industries and strong revenue growth make Cisco a leading contender in the 5G space. Our private 5G network supports the high-performance, reliable connectivity that is essential for business operations.
Cisco reported third-quarter fiscal 2024 revenue of $12.7 billion, down slightly year over year but beating analyst expectations. The company reported GAAP net income of $1.88 billion, or $0.46 per share, and non-GAAP net income of $3.6 billion, or $0.88 per share. Strong demand for Cisco’s network, security, and observability solutions drove the results.
Cisco raised its full-year revenue guidance to $53.8 billion from $53.6 billion, signaling confidence in its growth prospects despite the tough economic environment. The company now expects fourth-quarter fiscal 2024 revenue of $13.4 billion to $13.6 billion.
As of the date of publication, Matthew Farley does not hold (either directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed are those of the author and follow InvestorPlace.com’s publication guidelines.
