Top 5G stocks to buy in equipment and infrastructure category.
The initial 5G networks went online in 2019 but this massive project will include a ton of collaboration and investments among different categories across the globe well into 2020 and beyond. From semiconductor and small tech companies to infrastructure and even real estate corporations. The even better news is that there’s going to be a ton of opportunity for us, the tiny little investors, to get our share of the big 5G pie. In part one of my top 5G stocks to watch, I covered the 5G companies you can consider investing in in the semiconductor category. If you haven’t watched that video yet, definitely watch it now: https://youtu.be/mA-gx74BUtU
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Top 5G Stocks In Equipment Category
The top 5G stocks in this category include Apple, Samsung, Corning, and Ciena.
Apple Leads the Way
The largest cap company in this category is obviously Apple. Although still limited in scope, 5G networks are here. The only issue, apart from living in a compatible location and being on a compatible network, is that you also need a 5G-enabled phone too.
Most phone makers have now released 5G devices already but we’re still awaiting the first 5G-enabled iPhone. The word on the street is that iPhone 12 Pro and Pro Max will be 5G, with the standard iPhone 12 models sticking with 4G. Another possibility is that there will be a separate version for 5G, though we increasingly think this unlikely. However, rumors are suggesting a total of four models.
To be honest, there’s just a lot of rumors around when the iPhone 5G will launch that it may not be worth using it as a medium-term investment strategy.
In other words, Apple has so much other stuff going on right now to make or break our investment decision.
Watch this video for technical analysis.
Samsung is not easy to buy
The next 5G equipment company is Samsung, also known as agent (005930.KS) listed on South Korea’s stock market.
Now if you’re not in South Korea, actually getting your hands on Samsung hands is pretty tough. American investors can’t buy Samsung stock shares the way they typically buy stock — through major U.S. exchanges like the Nasdaq and NYSE. Instead, individual shares of Samsung stock must be purchased either over-the-counter as a “pink sheet” stock — which means your purchase isn’t regulated — or on the Korea Exchange (KRX), which entails opening a South Korean brokerage account. Samsung’s OTC symbol is SSNLF.
But most investors prefer not to go that route and for that reason, one of the easiest ways to buy Samsung stocks in the US is going through an ETF. That I will cover in part 3 of these series.
But for now, let’s take a look at Samsung individually. Because even if you go with an ETF, you want to make sure it has a heavier holding of your favorite stocks compared to those that suck. Right?
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Top 5G Stocks In Infrastructure Category
Leading the way among top 5G stocks in this specific category is Corning.
Before it gets turned into a high-speed Wi-Fi signal, 5G data needs to travel along with the wired internet just like other data. That’s where the fiber-optic cable comes in, and Corning (NYSE:GLW) — the veteran glass and ceramics manufacturer — is a top provider of it.
Even as they deploy new radio towers, many telecoms providing 5G also need to beef up their back-end networks with high-speed cable, and Corning is a top supplier for many of those companies. Corning is also getting into the small-cell antenna space, partnering with Qualcomm (which I covered in part 1 of my 5G video series) to supply in-building network equipment to help solve some of the problems 5G signals have in penetrating solid surfaces. A long dividend payment history doesn’t hurt Corning’s case here, either.
Last but not least in the 5G equipment category is the small but steadily growing Ciena (NYSE:CIEN), a company that offers fiber-optic equipment and design services to communications companies. Ciena used the ramp-up to 5G to pay down debt and increase its cash reserves. As organizations update their systems to handle 5G, this small firm enjoys a prime opportunity to offer both the engineering and the materials needed.
Ciena Bulls Say:
- Growing network traffic and demand for bandwidth remain a strong tailwind for Ciena’s applications
- The company has meaningful drivers, including share gains in markets like carrier transport and webscale, and the WaveLogic 5 DSP.
Ciena Bears Say:
- Ciena saw strong data center growth offset by weaker service provider demand
- Covid-19 could tap the brakes on data center growth in the second half of the year
- Issues with installation delays and Capital expenditure uncertainty will likely sap some of Ciena’s revenue momentum in 2020
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Please watch this video for the full analysis on each of these top 5G stocks.
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