As consumer electronics demand cools, investing in 5G technology stocks in 2024 will depend on understanding the company’s long-term offerings. With consumer spending no longer focused on shiny new phones, companies can no longer rely on consumer trends to maintain profits. This makes 2024 a year of innovation and consolidation across the communications sector.
5G’s connectivity and incredible speeds make it the perfect combination for dozens of industries, from healthcare to manufacturing to agriculture. However, the expansion of 5G services will face several hurdles in the coming years. Development costs may be a hurdle for his 5G companies to overcome, but as the need for access increases, the rewards outweigh the risks.
It is important for investors to understand the characteristics of service providers to ensure maximum long-term returns. For this reason, these three companies hold his 5G technology stocks and are worth watching for big gains, from technology expansions to new chips.
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Verizon (VZ)
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Holds over 25% of the U.S. carrier market share. verizon (NASDAQ:VZ) provides an opportunity to challenge the status quo. Thanks to early access to high-speed radio frequencies, Verizon currently leads the 5G race in terms of reliability. This bodes well for deployment in industries that rely on stable connectivity, such as healthcare and manufacturing.
Verizon leverages long-term contracts to drive up its stock price by offering the most consistent 5G service. Although not the largest network in terms of coverage, Verizon’s 5G coverage is focused on continued expansion. Additionally, Verizon may compete with larger providers by expanding its famously reliable network.
Verizon’s dividend yield is also solid at nearly 7%, well above the S&P 500 average. This makes Verizon stock ownership highly advantageous for investors looking for stable returns. This, combined with 17 consecutive years of dividend increases, makes Verizon a reasonable buy option.
T-Mobile (TMUS)
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From our humble beginnings as a regional subsidiary, T-Mobile’s (NASDAQ:TMUS) 5G’s monolithic rise to dominance needs no introduction. Founded as Western Wireless Corporation and acquired by Deutsche Telekom in 2001, TMUS is well-funded for expansion. Currently, the company is investing in every possible technology to stay competitive with its major U.S.-based competitors.
Boasting the fastest 5G network in the United States, T-Mobile is positioning itself as a more affordable, yet effective alternative. In addition, TMUS has made extensive investments in supporting its stadium network and entertainment venues, increasing brand awareness. The T-Mobile investment ties in nicely with America’s biggest sporting event, the Super Bowl. With a major upgrade, T-Mobile’s 5G bandwidth could handle the surge in users in Las Vegas during the game.
Rapidly growing networks and new home Internet services are creating great confidence among analysts. With such positive coverage, TMUS is now a leading stock to buy among his 5G technology stocks in 2024.
Qualcomm (QCOM)
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When we think of 5G, we tend to think of wireless antennas and broadband networks, but Qualcomm (NASDAQ:QCOM) approach the industry more subtly. By specializing in the communications chip industry, Qualcomm has positioned itself for the never-ending technological revolution of the past two decades.
Today, QCOM’s chips are used in countless smartphone brands, providing features such as Wi-Fi connectivity, modems, and even wireless charging. Although the company’s stock price plummeted in 2023 due to a slowdown in the smartphone market, QCOM’s next leap forward will come from its innovation.
Starting in the first quarter of 2024, Qualcomm’s new Snapdragon X Elite will aim for the PC market instead of just being a smartphone. This market breakthrough attempt comes as QCOM hopes to capture a piece of the AI boom’s profitability. QCOM’s stock valuation makes it a moderate buy among 5G technology stocks in 2024, with the company offering a chip that promises better integration than its competitors. Considering these new developments, it seems like QCOM has the potential to deliver significant gains in the coming years.
On the date of publication, Viktor Zarev did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
Viktor Zarev is a scientist, researcher, and author who specializes in explaining the complex world of technology stocks with precision and understanding.
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