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With the 6G race well underway, some curious investors may be wondering how and when 6G technology will emerge. Many analysts predict that testing of the technology will begin between 2025 and 2028, with the first commercial applications appearing around 2030. But 6G is more than just a high-speed communications network. The introduction of 6G is likely to bring a significant expansion in network capacity and range of capabilities. In other words, the best 6G stocks to buy are those that are actively investing in taking advantage of this new spectrum.
Therefore, smart investors should understand that attempting to invest in 6G technology at such an early stage is a long-term commitment. These investments may take more than a decade to mature, and future success is not guaranteed. However, as we have seen with 3G, 4G, and 5G networks, the natural progression to 6G will accelerate many industries, not just the telecommunications industry. Here are three companies whose stock prices could rise significantly in the long term thanks to their 6G projects:
Ericsson
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Swedish telecommunications giant, Ericsson (Nasdaq:Eric) discusses the potential of 6G network technology as creating a cyber-physical continuum. For this legacy network builder, the technology is about bridging the time gap that exists in current information networks.
While Ericsson is primarily a European focused company, it is also a key member of the US NextG Alliance, which is working to accelerate the deployment of 6G technology in North America. Furthermore, as Ericsson invests in these future technologies, it increases the likelihood of leveraging its intellectual property in the future.
Financially, the company has attracted mixed attention depending on the angle of analysis. On the one hand, its total revenue in Q1 fell 14.75% year-on-year to SEK 53.33 billion. On the other hand, its profit margins improved by 98.35%, indicating efficient financial management. This could make ERIXF one of the best 6G stocks to own to survive the ever-evolving telecom industry.
Nokia (NOK)
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Despite once being a giant in the mobile phone industry, Nokia (New York Stock Exchange:Norwegian KroneNokia’s recent transformation into a network technology company has led some to believe its stock price has fallen, while others believe the company has repeatedly drawn attention for its meme potential. But whatever your perception of Nokia, it is one of the key players in the development of 6G.
This comes from Nokia working directly with major companies. SKT (New York Stock Exchange:SKM) and NTT (OTCMKTS:NPPXFNokia began research and development into 6G in 2010 to advance research into the integration of 6G and AI. Like many other companies pushing 6G, Nokia is secretive about the specific details of its technology, but it has publicly stated that it is working on a high-speed network project that will link one AI with another.
If successful, the company will become a key service provider to the world of AI companies currently racing to take technology to the next level. Only time will tell if Nokia’s comeback will be in 6G technology.
Qualcomm (QCOM)
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Among the companies involved in 6G integration and application, Qualcomm (Nasdaq:QCOM) may be best positioned to take advantage of this new technology because it is directly responsible for designing and manufacturing the microchips that power devices that connect to the internet and communications networks.
As of now, Qualcomm hasn’t announced any specific chips that will harness the power of the 6G frequency spectrum, but like many other companies, it is openly speculating about what the optimal configurations will be to maximize coverage in a future that relies on both 5G and 6G.
What’s more, Qualcomm is one of the best long-term 6G investments because it has both the financial and industry strength needed to survive the next decade until 6G technology goes mainstream. The company’s processors and connectivity chips will likely continue to grow as mainstays across the tech industry.
As of the date of publication, Viktor Zarev did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Viktor Zarev is a scientist, researcher and author specializing in explaining the complex world of tech stocks with a focus on accuracy and understanding.
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