With a peak speed 20 times faster than 4G — and some say even 100 times faster — fifth-generation (5G) mobile telephony could transform the way we connect in the coming years. Midway through June 2021, there is no widespread coverage of the new network yet so there may be a real opportunity to get in on the trend and invest early in companies that will make 5G connectivity happen.
In this guide, we list our top 10 5G stocks under $10 and we go on to describe five of them.
Where Can I Buy 5G Stocks Under $10?
Although some stocks can be bought directly from companies using a direct stock purchase plan (DSPP), for 5G stocks under $10 you will most likely buy via a broker, and this will most likely be an online broker. When choosing a good broker, you need to look out for various things — such as regulation status, tight bid-ask spreads, and low commissions — but we have made it easier for you by identifying some of the best brokers.
What Are 5G Stocks Under $10?
5G stocks are companies that are involved in the delivery of fifth-generation (5G) telephony technology. For this guide, we’ve whittled down the list of 5G stocks further to include only those that are priced at less than $10-per-share. Some stocks could be priced low for a reason, but some could see their share prices shoot up when 5G becomes more ubiquitous.
How to Invest in 5G Stocks Under $10
Open a Trading Account
Signing up with a reputable stockbroker that lets you trade 5G stocks (or any other stocks) couldn’t be easier, and a broker’s online application form typically takes only minutes to fill out. Most if not all regulated brokers will want you to prove your identity before fully activating your account.
Choose 5G Stocks Under $10
Search or scroll through your broker’s list of tradable stocks to find the ones from our list, but be sure to do your own research before buying. Fundamental analysis should help you determine which stocks to buy, and technical analysis can help you decide when to buy them.
Place Your Trade
Open a trade ticket for any stock you want to buy, enter the number of shares to buy (or amount of money to invest), and click the “buy” button to see the trade executed almost immediately. Or, open an order ticket outside of market trading hours to buy a stock as soon as the market opens or when the price reaches a certain level.
Top 10 5G Stocks Under $10 to Buy
These are our top 5G stocks under $10 to buy:
- ASE Technology Holding
- Communications Systems
- Nokia Corp
- ADDvantage Technologies Group
- Limelight Networks
- Wireless Telecom Group
- Borqs Technologies
Now let’s look at the top five stocks to buy in more detail.
1. ASE Technology Holding (NYSE: ASX)
Taiwanese company ASE Technology Holding offers assembly and testing services. It provides outsourced assembly, semiconductor testing, semiconductor packaging, and other services. The 5G rollout looks set to benefit ASX’s semiconductor manufacturing business through its "smart factory" powered by the 5G mmWave network that the company introduced in December 2020.
The ASX share price is at an all-time high in June 2021 but has been quite volatile over the past 20 years. This said, what looks like volatility now could look like a relatively flat line in the long term if this stock takes off to be a multi-bagger.
2. Communications Systems (NASDAQ: JCS)
Communications Systems provides infrastructure products for broadband and voice communications. It operates three business segments — Transition Networks, JDL Technologies, and Net2Edge — that serve customers from North America, Europe, the Middle East, Africa, and other countries.
The JCS share price has been on a roller coaster ride and in June 2021 is pretty much where it started as far back as 1984. If this stock continues with the same multi-year cycle, we can expect the stock price to more than double in the coming decade.
3. Nokia Corp (NYSE: NOK)
This former mobile tech titan, which was big in the 1990s, still sells phones. However, its new business is building 5G networks for the future, and in this respect, it may well benefit from some countries’ reluctance to adopt Huawei’s 5G network infrastructure.
Nokia shares have consolidated near an all-time low, which could be a perfect time to buy before the price explodes.
4. ADDvantage Technologies Group (NASDAQ: AEY)
ADDvantage Technologies Group operates in two business segments: wireless infrastructure services and telecommunications. The company builds and upgrades wireless networks and provides network communications equipment to the telecom industry.
After a stellar start in 1996, AEY shares had fallen far and fast by 1998. Fast forward 20+ years and the shares may be showing signs of life, at least in terms of trading volumes.
5. Limelight Networks (NASDAQ: LLNW)
Limelight Networks is a content delivery network (CDN) for digital media content and software, with a customer base that includes Amazon Prime Video and HBO Max. Limelight also launched EdgeFunctions, its venture into edge computing, which is expected to benefit from the 5G wireless network rollout.
LLNW shares have shown no clear direction (up or down) for more than a decade, but the apparent periodicity may make the midway point in 2021 a good time to buy Limelight Networks stock.
Expert Tip on Investing in 5G Stocks“ No investment guarantees certain success, and share prices can go down as well as up. Placing a protective stop order at some level below your purchase price (not too close, not too far away) will automatically sell your stake if the price goes against you. The idea is to exit your position at a small loss before it becomes a big loss. ”- Ron Mendoza
Why Invest in 5G Stocks Under $10?
5G is not just a big upgrade to connectivity. It might also be seen as disruptive and transformational, possibly serving as a launchpad for technologies that we haven't even heard of yet. If the 5G industry proves to be a success, undervalued 5G companies could shoot up in price and eventually pay dividends.
With potential high rewards comes inevitable high risk but there are ways of managing this risk.
Frequently Asked Questions
A 5G stock is a single company involved in the rollout of 5G technology; a 5G ETF is a basket of such stocks that can be traded during market hours in the same way as a single stock.
In most countries, you will have to pay tax on your trading profits unless you take special measures not to pay tax: e.g., only sell shares within your annual capital gains allowance or (in the UK) trade via non-taxable spread bets.
Many brokers allow you to open an account within minutes by providing minimal personal information. However, to fully activate your account, and especially to withdraw profits, you will have to provide some form of identification to prove who you are.
Regulated brokers will want you to identify yourself as part of their “know your customer” (KYC) procedures. They will also shout about their regulation status on their websites, and you can check with the online registers provided by regulatory authorities such as the UK’s Financial Conduct Authority (FCA).
There are at least two ways to manage risk. One way is to diversify your holdings across several stocks so that no single company can wipe out your portfolio by going bust. Another way is to place a protective stop order below your purchase price on any trade so that the investment will be exited at a small loss before it becomes a big loss.
All stocks are traded during stock market opening hours, which are typically 8 am to 4.30 pm on weekdays.