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5G Stocks To Watch in 2020 (By Category)

By 07/01/2020 No Comments

5G stocks are some of the hottest companies among investors.  

Did you know that 5G is 100 times faster than the Previous standard 4G?

5G is the fifth and newest generation of wireless networking technology which also has lower latency and is 100 times faster than the Previous standard 4G. This video is part 1 of 3 on 5G stocks to buy in 2020. Today I look at the three industries that are involved with the 5G technology, then within each category, I’ll roll out the top stocks to watch, do a quick Invest Diva Diamond Analysis which analyzes each stock from a fundamental, technical, and market sentiment point, and identify the key psychological prices you can consider to buy each of these companies. At the end of part 3, I also introduce some ETFs that are heavily loaded with 5G companies and reveal the top 5G stock that I’m personally invested in.

 

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5G Stocks By Category

Companies most heavily involved with 5G can be broken down into semiconductor manufacturers (also known as chipmakers), manufacturers of basic equipment and infrastructure, and holders of real estate assets. 

5G Stocks By Category

5G Stocks By Category

Today I’m going to analyze the top stocks in the Semiconductor category.

The top 5G stocks in the semiconductor category include:

Xilinx

(XLNX)

Qualcomm

(QCOM)

Nvidia

(NVDA)

Skyworks Solutions

(SWKS)

Qorvo

(QRVO)

Cree Incorporated

(CREE)

 

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5G Stock #1 in Semiconductor Category: Xilinx

Xilinx is the leader in FPGAs by market share. Its chips are critical in the performance of various devices in the communications, data processing, industrial, consumer, and automotive markets. Xilinx designs and sells chips, but it outsources manufacturing to third-party chip foundries such as TSMC.

Xilinx Bulls Say…

FPGAs have taken and are poised to continue to take market share away from ASICs, and also that as FPGAs could provide Xilinx with future nontraditional growth opportunities.

Xilinx Bears Say…

Intel acquired rival Altera, giving the latter access substantial resources, which could allow Altera to close the performance gap with Xilinx in the future.

Although FPGAs are expected to grow at a faster pace Xilinx’s revenue growth has been lumpy.

XLNX Price Action on Weekly Chart - Top 5G Stocks to Buy

XLNX Price Action on Weekly Chart – Top 5G Stocks to Buy

Check out this video for details on technical analysis to identify optimal buying prices.

 

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5G Stock #2 in Semiconductor Category: Qualcomm

The next 5G company in the semiconductor category is Qualcomm. Qualcomm develops and licenses wireless technology and also designs chips for smartphones.

It has ridden the smartphone boom since the early 2000s, focusing on the tech behind the first 3G and then 4G mobile networks.

Qualcomm Bulls Say…

  • Qualcomm’s portfolio includes chips enabling 5G communication in everything from Internet of Things devices like industrial equipment to smartphones to cars, as well as modems and other equipment that make up the 5G network itself.

 

  • It has a ton of cash on its balance sheet to drive further hardware innovation, and it has consistently paid a dividend for nearly two decades.

Qualcomm Bears Say…

  • Its chip business faces a host of challenges, from share loss at Samsung and Apple
  • Qualcomm’s licensing business faces regulatory scrutiny in the U.S., Taiwan, and, South Korea
  • The company needs to diversify beyond smartphones, which may be challenging as a host of competitors are attempting a similar strategy.
QCOM Price Action on Weekly Chart - Top 5G Stocks to Buy

QCOM Price Action on Weekly Chart – Top 5G Stocks to Buy

Check out this video for details on technical analysis to identify optimal buying prices.

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5G Stock #3 in Semiconductor Category: Nvidia

Nvidia’s graphics processing units (GPU) are best known for high-end video games, but they’ve found uses in many other applications, 5G included.

5G networks promise not only faster download speeds but also the ability to handle higher traffic and intelligently route network signals where they’re needed most.

 

Nvidia Bulls Say…

  • Nvidia’s graphic chips can be used for artificial intelligence and deep learning which can potentially give them a massive growth opportunity
  • The company has a first-mover advantage in autonomous driving market

Nvidia Bears Say…

  • Nvidia’s automotive endeavors face plenty of competition
  • A majority of sales come from the maturing PC industry via PC gaming.
NVDA Price Action on Weekly Chart - Top 5G Stocks to Buy

NVDA Price Action on Weekly Chart – Top 5G Stocks to Buy

Check out this video for details on technical analysis to identify optimal buying prices.

 

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5G Stock #4 in Semiconductor Category: Skyworks

Much smaller than the other ones, Skyworks Solutions (NASDAQ:SWKS) also deserves to be on the list. This is a key smartphone and consumer electronics supplier, the company has used its connectivity know-how to enter other markets, including smart home devices, connected industrial equipment, and medical devices. It has also developed some of the basic components that power the next-gen 5G network.

Skyworks specialty Radiofrequency (RF)

Skyworks Bulls Say…

  • Though it’s the smallest chipmaker on this list, Skyworks has a healthy balance sheet to promote further growth as the next wave of connectivity services comes online.
  • As more and more devices become connected to the Internet via cellular networks, Skyworks may continue to find new industries that may require additional RF chip content.

Skyworks Bears Say…

  • large customers like Apple and Samsung wield significant pricing power and could exert pricing pressure on vendors like Skyworks over time.
  • Skyworks has significant customer concentration with Apple, and if Apple were to ever switch to another vendor, it would be a damaging blow.

 

You might also like: Intel Stock Analysis: is it better than AMD and NVDA in 2020?

5G Stock #5 in Semiconductor Category: Qorvo

Qorvo is a leader in radio frequency chips sold to smartphone makers and infrastructure and defense customers. Much smaller than its peer Skyworks with only 12.6B in market cap. Doesn’t pay a dividend and its earning is around the same time as the other ones in this category.

 

Qorvo Bulls Say…

As wireless technologies shift to more advanced 5G networks, smartphones will require greater RF content per device, which should provide a nice runway for further growth at Qorvo.

 

Qorvo Bears Say…

The company has significant customer concentration with Apple, and it would be a damaging blow if Apple were ever to switch to another vendor or suffer a severe slowdown in iPhone sales.

 

You might also like: Uber Stock Analysis on Grubhub Acquisition 2020

5G Stock #6 in Semiconductor Category: Cree

Last but not least is Cree Incorporated, the smallest company based on market cap which is involved in the manufacturing of wide bandgap semiconductor products for power and radio-frequency (RF) applications.

Cree Bulls Say…

  • Cree is readying up for long-term grow and has a bright future as it is a market leader in Silicon Carbide products.
  • The business has been gaining traction in next-generation technologies like EVs and 5G.

Cree Bears Say…

  • While Cree has a bold vision, is has weak financials and a steep price.

If you’d like to see the full list of my top long-term holds, dividend-paying stocks, tech stocks, and growth stocks, click here to join Invest Diva’s Premium Investing Group aka PIG.

 

You might also like: Tesla Stock Price Analysis 2020 | Is TSLA Still A Good Buy Or Did You Miss Out?

 

Microsoft Stock Price – Technical Analysis

The Microsoft stock price has reached a new all-time high level. However, it may find resistance soon at around $200 or $210.

In that case, we could expect a pullback towards key Fibonacci retracement levels of $177, $168, and $161 respectively.

Microsoft Stock Price Technical Analysis

Microsoft Stock Price Technical Analysis

The price remains above the daily Ichimoku cloud. Medium term profit targets are at $227 and $238 respectively.

Please watch this video for the full technical analysis.

Check out my book Ichimoku Secrets.

Find out about the 10 stocks I like more than Microsoft by becoming a Premium Investing Group (PIG) member.

 

How To  Take Control Of Your Financial Future >>

 

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