The best 5G stocks will evolve over time. IPhone maker Apple (AAPL) always merits consideration. But the supply chain of Apple stock is a more seasonal and cyclical opportunity.
X
Semiconductor stocks offered an early play on 5G wireless. Chip makers remain an opportunity. Investors rightfully have been cautious on 5G network gear makers and other infrastructure plays, like cell-phone tower operators.
In the long run, 5G wireless services delivered to businesses via cloud computing giants like Amazon.com (AMZN) could offer the best 5G stocks. Many startups are active in “edge computing.”
Investors should look for updates on company earnings calls as more smartphones, laptops, autos and internet-connected industrial devices use 5G technology. Chip maker Qualcomm (QCOM) reports fiscal Q2 earnings on April 27.
Dish Networks (DISH) plans to showcase its 5G build out in Las Vegas, its first market, at an analyst day on May 10.
Best 5G Stocks: Capital Spending To Jump In 2022
Naysayers still question the return on 5G investment for telecom companies. They point to the lack of a 5G “killer app” for consumers.
“We do not expect material revenue increases in the global telecom sector from 5G in the 2022 to 2025 period,” said credit rating agency Moody’s in a recent report. “While the revenue picture remains uncertain, 5G still requires significant investment.”
“So far, a true 5G killer app has yet to emerge, which reduces the potential for revenue growth,” added Moody’s. “Indeed, it has become apparent that the most compelling use cases for 5G revolve around businesses rather than residential consumers.”
Analysts expect 2022 to be a big year for capital spending by U.S. wireless service providers. Some 5G stocks should get a lift as they ramp up spending on 5G communications network infrastructure.
Led by T-Mobile US (TMUS), U.S. wireless firms are deploying 5G wireless services using high-performance, midband radio spectrum. Verizon Communications (VZ) and AT&T (T) are playing catch-up and will spend the most in 2022 and 2023.
“The U.S. is seeing an…
..
