Love it or hate it, 5G is here, and for investors who are interested in innovative technology, there are several promising 5G penny stocks worth watching.
Major providers like T-Mobile (NASDAQ:TMUS), AT&T (NYSE:T), and Verizon (NYSE:VZ) have all rolled out 5G networks in the US, and a handful of 5G-capable smartphones hit the markets last year.
Tech giants like Microsoft (NASDAQ:MSFT), Samsung (OTC:SSNLF), and Apple (NASDAQ:AAPL) have all been preparing for 5G, but there are countless small-cap 5g stocks that play a key role in the 5G revolution.
The COVID-19 pandemic has slowed down the advancement of 5G infrastructure development slightly, but the companies involved in 5G development are continuing to make strides towards a fully 5G-capable world.
Here are four top 5G penny stocks that are worth watching on April 24.
Top 5G Penny Stocks to Watch: Nokia (NYSE:NOK)
At the top of the list of 5G penny stocks to watch is Finland-based telecommunications provider Nokia Corp. The company offers software, services, network equipment, and licensing opportunities to customers worldwide and is a front-runner in the development and deployment of 5G networks.
Nokia Corp has two main business-to-business (B2B) customers: communication service providers and enterprise companies, which develop, sell, and install business software.
The communication service provider supports over 6.4 billion subscriptions to Nokia’s radio network, while its enterprise customers have launched over 1,300 industrial networks across the world.
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Part of Nokia’s 5G strategy is the addition of award-winning Bell Labs in 2016, which has led to an unrivaled history of technological breakthroughs, such as transistors, lasers, and UNIX.
On March 24, Nokia declared over 3,000 patent families to the European Telecommunications Standards Institute (ETSI) as essential for 5G. The milestone comes less than six months after the company declared 2,000 patents.
What’s more, Nokia Bell Lab’s standard-essential patents (SEPs) portfolio has more than doubled in the last five years.
Nokia’s full-year 2019 net sales were €23.3 billion ($25.1 billion)—the earnings per share was €0.22 ($0.23).
A total of 15 Wall Street analysts have issued ratings and price targets for Nokia, which includes one “Strong Buy” rating, nine “Buy” recommendations, and five “hold” ratings.
The average 12-month price target for NOK is $4.50, suggesting a potential upside of 32%.
By market close Friday, NOK stock was up 0.14% to $3.39.
Top 5G Penny Stocks to Watch: ASE Technology Holding Co (NYSE:ASX)
Another one of the hot 5G penny stocks to keep an eye on this week is ASE Technology Holdings, a semiconductors packaging and testing company and electronic manufacturing services (EMS) provider.
Investors who are interested in 5G penny stocks should definitely keep an eye out for ASE Technology’s upcoming Q1 2020 results, which will be released on April 29. Based on the company’s increasing monthly sales volume, these results should be very positive indeed.
ASE reported net sales revenue of NT$23.16 billion ($935 million) in February and NT$37.88 billion ($1.25 billion) in March 2020. In the previous quarter, the company reported a net revenue of NT$116 billion ($3.85 billion) and NT$413 billion ($13.7 billion) for 2019 full-year.
Of course, if rumors are true, ASE Technology could generate substantially more revenue in 2020.
According to DigiTimes, Apple (NASDAQ:AAPL) has chosen ASE Technology as the supplier for its mmWave 5G iPhone and iPads antennas. The company has also reportedly secured SiP orders for Apple Watch and 4G/LTE wireless communications modules for iPhone SE2 and is also likely to join the supply chain for new AirPods models.
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On Friday, ASX stock closed up 0.24% at $4.19, but according to analysts, the stock could go much higher.
Four out of five Wall Street analysts who have issued ratings for ASX have offered the company a “Buy” rating. The average 12-month price target for ASE Technology is $30, which suggests a potential upside of 615%.
Top 5G Penny Stocks to Watch: Airspan Networks (OTCPK:AIRO)
Multi-award winning 4G, 5G, and fixed wireless network provider Airspan Networks is another one of the top 5G penny stocks to watch right now.
The company’s 5G portfolio includes the Air5G fully open virtualized RAN platform in sub-6 GHz & mmWave and the Magic Box with 5G backhaul.
In March, Airspan Networks partnered with Altiostar Networks to accelerate the commercialization of Open RAN 4G and 5G platforms. Together, the two companies plan to enable network operators all over the world access to fully-virtualized cloud-native network architectures that utilize Altiostar’s Open vRAN solution with Airspan’s OpenRANGE platform.
Just last week, Airspan joined Competitive Carriers Association(CCA) in an effort to address and serve the needs of its members by offering award-winning 4G/5G hardware and software solutions.
CCA members range from small, rural carriers that serve less than 5,000 customers to regional and nationwide providers that serve millions of customers.
At market close Friday, AIRO stock was up 37.99% to $2.76.
Top 5G Penny Stocks to Watch: IQE Plc (OTCPK:IQEPF)
Last but not least on the list of top 5G penny stocks to watch is UK-based IQE Plc, a leading global supplier of advanced semiconductor wafers that enable a diverse range of applications.
Last March, the company announced its participation in a new £850,000 ($919,869) research project to help put the UK at the forefront of the next generation of millimeter-wave wireless communications technology for 5G infrastructure.
The project was launched to address the important challenge of ubiquitous wireless connectivity for 5G and is a collaboration between Lancaster University and Glasgow University and major industrial partners, including IQE, Filtronic, BT, Nokia Bell Labs, Optocap, and Teledyne e2v.
IQE plans to release its full-year 2019 financial results on April 28, which were postponed by just over a month based on advice and guidance from the Financial Conduct Authority (FCA).
The company did, however, provide unaudited financial results on March 24, which showed revenue of £140.0 million ($173.1 million).
Some operational highlights for IQE include continued strong progress in the development of Filters (based on the company’s patented cREO technology) and Switches for 5G.
The company also introduced 10G and 25G full-service distributed feedback (DFB) laser for high-speed datacoms using nano-imprint lithography (NIL) and 10G and 25G avalanche photodiodes (APDs), both of which are for high-speed datacoms that serve the 5G infrastructure and data center markets.
At end of day Friday, IQE stock was up 37.1% to $0.85, which is tiny compared to its UK-listed stock price of £37.10.
Takeaway
5G technology is expected to completely change the way the world interacts with machines and alter life as we know it.
Virtually every industry will eventually rely on innovative technologies like artificial intelligence (AI), machine learning, and robotics, which is why the stock market will likely continue to be dominated by 5G penny stocks that are helping the 5G movement push forward.
Whether you are a tech-savvy investor or not, there is no denying the power this new wave of technology will have on our future.
There are endless opportunities for investors to get in on the 5G revolution, whether you prefer investing in semiconductor chipmakers or wireless network providers, and 5G penny stocks could be the perfect way to capitalize on this lucrative market when 5G reaches its full potential.
The global 5G services market alone is estimated to reach $45.7 billion this year and register a CAGR of 32.1% from 2021 to 2025.
Are there any 5G penny stocks on your radar right now? Let us know about them in the comments!
Featured Image: DepositPhotos © jamesteohart
