The 5G infrastructure and services market is expected to have one of the highest CAGR rates in the next five years. The best 5G shares to buy presented in this article have engaged in various 5G projects, acquired 5G companies, or have entered new contracts to benefit from the 5G industry's upcoming growth.
For this reason, we’ve created a list here that comprises the best 5G names in the industry based on their involvement and implication in future developments in the industry.
Overview of the 5G Companies
The 5G infrastructure and services market was valued at $3.5 billion, respectively at $1.62 billion by 2026. The cumulative Compounded Annual Growth Rate (CAGR) exceeds 53% in the next five years, a terrific incentive for anyone with funds to invest over such a horizon.
Europe, in particular, is expected to experience significant growth, and companies in the industry, like Apple, have already introduced products (e.g., iPhone 12) with 5G capabilities. This is a fragmented industry and market, with new product launches and with each company trying to get as big a share as possible in the shortest time frame possible.
What Are the Trading Hours for 5G Shares?
Most of the 5G shares listed in this article are listed on the American equity market. Because of that, a trader might want to be aware of the trading hours in North American. Also, a couple of names are Europeans, so they are also listed locally. Furthermore, depending on the products that the brokerage houses offer to trade, one may use CFDs to gain exposure on the best 5G shares today.
Where Can I Buy 5G Shares?
Brokerage houses act as intermediaries between traders and the market. Against a spread or a fee, they give access to the market, either via common shares or CFDs (Contracts for Difference). We've shortlisted the best 5G stocks to buy in 2021 and you can start trading them in our recommended brokers by clicking on the buttons of the following table.
Top 10 5G Shares to Buy
The list below comprises the best ten 5G shares to buy in 2021 based on their financial strength, exposure to the industry, and investments:
Apple needs no additional introduction. This is one of the largest companies in the world that recently launched its 5G services with the new generation of iPhones.
- Market capitalization: $2.3 trillion
- Recently announced that it teamed with Hyundai for the first Apple Car model
- It launched a $14 billion bond sale in January 2021
- A dividend-paying company with a dividend growth track of nine years
- Listed on Nasdaq under the ticker AAPL
- Up 3.18% YTD
- Up 476% in the last five years
Another company that needs no introduction, Microsoft is active in the systems software industry and also taps the 5G services industry. It rolled out ambitious plans through the acquisition of Metaswitch Networks.
- Market capitalization: $1.82 trillion
- A dividend-paying company with a dividend growth history of seventeen years
- Listed on Nasdaq under the ticker MSFT
- Up 9% YTD
- Up 390% in the last five years
From Espoo, Finland, Nokia is a corporation active in the communications equipment industry and engages in technology businesses worldwide. It enjoys a strategic partnership with Microsoft and is actively involved in the rolling out of 5G gateways. It employs over 90k people all over the world.
- Market capitalization: $23.98 billion
- Listed on the New York Stock Exchange under the ticker NOK
- Up 8.95% YTD
- Recently won a contract with Deutsche Telekom to modernize its optical transport network
A huge American corporation from the integrated telecommunication services industry, AT&T lost market share recently to competitors. It ventured into the 5G technology and employs over 240k people.
- Market capitalization: $204.99 billion
- It recently signed a multi-year retransmission agreement with Cox Media
- It took a loan recently from the Bank of America for the funding of spectrum spending spree
- Listed on the New York Stock Exchange under the ticker T
- Flat so far YTD
- Down 22% in the last five years
- A dividend-paying company with a thirty-six-year dividend growth history
A direct competitor to AT&T, Verizon Communications entered a partnership with Emory Healthcare for the development and testing of 5G Ultra Wideband-enabled use cases. This is just one of the 5G projects this giant is involved in, and plans are to expand into this area in the future.
- Market capitalization: $227.80 billion
- It recently announced earnings for the Q4 of 2020 better than expectations
- Guidance for the FY 2021 was upgraded
- Listed on the New York Stock Exchange under the ticker VZ
- Down 6.3% in 2021
- Up 8.49% in the last five years
- A dividend-paying company with sixteen years of dividend growth and a five-year growth rate of 2.22%
From San Diego, California, Qualcomm is a leader in the semiconductors industry. It also owns various patent rights in 5G standards, making it one of the largest players in the new industry.
- Market capitalization: $167.42 billion
- It plans to launch a high-speed 5G modem in 2021
- Downgraded at Citi recently
- Listed on Nasdaq under the ticker QCOM
- Dividend-paying company
- Down 3% YTD
- Up 235% in the last five years
Another big player in the semiconductors industry, AMD runs various projects in the 5G space as well. It was recently in the spotlight after the Robinhood retail traders' "revolution" and, on a more serious note, it beat expectations on Q4 2020 earnings both on EPS and on revenue.
- Market capitalization: $110.80 billion
- Up over 4600% in the last five years
- Listed on Nasdaq under the ticker AMD
- Flat YTD
Just like the previous two companies, Skyworks comes from the semiconductors sector and has big plans in the 5G space. It employs ten thousand people and pays a dividend too.
- Market capitalization: $29.94 billion
- Listed on Nasdaq under the ticker SWKS
- Up over 200% in the last five years
- Up 18% year-to-date
From Santa Clara, California, to the United States, NVIDIA is a global company that operates on two segments – GPU and Tegra Processor. It views the 5G as one of the most promising technologies and invested as such.
- Market capitalization: $357.5 billion
- Listed on Nasdaq under the ticker NVDA
- Up over 2190% in the last five years
- Up 10% year-to-date
Headquartered in Stockholm, Sweden, Ericsson is an active player in communications equipment and with investments in the 5G technology. It operates globally and has a workforce of over 100k employees.
- Market capitalization: $44.64 billion
- Strong Q4 earnings on higher margins
- Listed on Nasdaq under the ticker ERIC
- Up 54% in the last five years
- Up 11% year-to-date
Expert Tip On Investing in 5G Shares
Follow the earnings season closely and double-check the patterns on the charts. On any consolidation ahead of the release, wait for the release and buy if the breakout exceeds the previous high. This way, even if the market eventually returns, you may still benefit from the dividends paid by these companies.
Why Invest in 5G Shares?
Great CAGR over the next five years, early adoption in Europe, first steps already taken by both governments and the private sector.
Frequently Asked Questions
That would be Apple. This is one of the largest companies in the world, if not the largest, and already introduced to the retail customer the infrastructure needed to use 5G services with its latest iPhone launch.
Companies that invested in 5G want to benefit from the huge CAGR rate seen in the next five years. Eventually, their investment would have ripple effects on the income statement and, ultimately, their share price.
Microsoft. Super strong balance sheet, cash flow keeps pouring in, liquid and well-run.
Dividend-seeking investors love the 5G industry because the biggest players, either telecom companies or large tech corporations, have a history of dividend growth. Also, those looking to gain exposure to new technology may want to diversify their portfolio with some 5G shares.
Nokia. The simplest explanation here is that it is cheap. It is a penny stock if you want, although Nokia is running a huge business. However, because of the cheap share price, it is affordable to many investors, small ones included.
It is believed that the 5G industry will deliver solutions, technologies, and architectures for the coming generation via a public-private partnership.