Roughly every ten years, a new generation of technology shocks and delights the world, resulting in global adoption and seemingly infinite investments. The latest tech advancement generating excitement among the masses is 5G, AKA fifth-generation wireless technology. The 5G revolution has just begun, and some 5G stocks are already jumping on the industry’s abundant opportunities.
From the US government’s pledge to invest $20 billion into 5G to China’s plan to spend a whopping $150 billion on the technology by 2025, there is no shortage of money being thrown at 5G stocks.
So, what is this exciting new technology exactly? And what is the best way for investors to gain access to the industry that is on track to generate $12.3 trillion in revenue across multiple industries?
What is 5G?
5G refers to the fifth-generation of wireless technology and the next phase of mobile telecommunications standards beyond the current 4G standards. The technology will not only offer new levels of performance for mobile devices but will also interconnect and control objects, machines, and devices of all kinds.
Not only will it create a better experience for individuals who rely on their smartphone to store and transfer data every day, but it is believed to be the catalyst to connect nearly everything. This innovative technology has the capability to drive significantly greater efficiencies in several industries—from manufacturing to healthcare to asset management.
And let’s not even get started on the capabilities 5G will bring to augmented and visual reality and even brain-computer interface once it fully rolls out.
In short, this market is going to grow rapidly and completely change day-to-day life as we know it.
From telecom equipment providers like Ericsson (NASDAQ:ERIC) and Nokia (NYSE:NOK) to semiconductor creators like Qualcomm (NASDAQ:QCOM), there are a ton of large 5G stocks competing for the top spot in this lucrative market. However, there are a handful of small-cap 5G stocks that offer major upside as well.
Small-Cap 5G Stocks to Watch
As mentioned, 5G will have a huge impact on numerous industries. Virtual reality, in particular, is expected to take off in the next few years thanks to this new technology. In fact, the VR market is expected to increase from $8.9 million in 2019 to a whopping $68.6 million by 2023.
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One company that will greatly benefit from the 5G revolution is Ambarella Inc. (NASDAQ:AMBA), a high-definition video compression semiconductor creator. The company’s technology is widely used in television broadcasting, with a large amount of TV programming being transmitted with its compression chips.
Ambarella recently launched the H3 System-on-Chip (SoC) for high-end drones and new generation video cameras, which include 360-degree and virtual reality cameras. This new H3 video SoC enables 8K Ultra HD H.264/AVC video at 30 frames per second and multiple video streams with equivalent performance, including 360-degree cameras with dual 4KP60 sensor video capture.
Wireless backhaul specialist Ceragon Networks Ltd. (NASDAQ:CRNT) is another company that will thrive on 5G technology. Ceragon has developed FibeAir IP-20C, a highly versatile and compact wireless backhaul node that suits any network deployment scenario. The FibeAir IP-20C allows for faster speeds and more data, creating the optimal ecosystem for 5G.
More 5G Stocks to Consider
Another one of the 5G stocks that will benefit from 5G is Boingo Wireless Inc (NASDAQ:WIFI), a Wi-Fi service provider that offers seamless wireless deployment. The company has been working with Wi-Fi, Distributed Antenna Systems (DAS), and small cells to improve customer connectivity, particularly in densely populated areas.
This week, Boingo is debuting its Converged Virtualized Core at the Mobile World Congress (MWC) in Los Angeles. This next-generation solution is built with a virtualized infrastructure core, which includes a virtualized radio access network (vRAN) and replaces network hardware with software by using the cloud to evolve network operation for the 5G era.
Last but definitely not least is Axcelis Technologies Inc. (NASDAQ:ACLS), a global leader in the design, development, and manufacturing of ion implantation systems and services for the semiconductor industry.
Without ion implantation, the chips couldn’t process data at such a rapid speed, making Axcelis a staple in the 5G revolution due to the demand for more efficient chips. In September, the company announced the addition of three new Purion ion implanter products that feature enabling technology for several emerging markets.
Investors may want to consider adding these 5G stocks to their watchlist to gain their share of what is expected to be one of the biggest tech revolutions since the invention of the internet.
Are there any 5G stocks on your radar? Let us know in the comments!
Featured Image: Depositphotos © sdecoret
