The next big thing is here; 5G stocks are steadily growing and there are quite a few good long-term buys in the market now.
With mobile giants moving towards 5G technology, the future prospect for the 5G stocks seems bright and profitable. With the launch of Apple’s 5G iPhone in the recent past and telecom endorsing the advantages of its high-speed services, 5G is the next big thing to look forward to in 2021.
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In that regard, most of the 5G-based stocks surged significantly during this year. The positive vibes have been coming from 5G stocks as the technology enters its practical phase. With this new beginning, investing in 5G stocks will benefit investors for years—long-term progress.
As we are about to move from 2020 to 2021, there are few long-term stocks in the 5G space. Let’s have a look at three of the best 5G stocks to buy.
The third-largest U.S. wireless carrier and a prominent telecom firm have made notable progress in 2020. Despite the pandemic impact, a stodgy telecom stock like T-Mobile (TMUS) made outstanding gains. T-Mobile stock has soared up to 70% to date this year.
With such a massive surge, yet the stock has much more to give as we head into 2021.
T-Mobile’s merger completion with Sprint will make it the first carrier to deploy a true 5G network across the country. The Sprint collaboration allows T-Mobile to make a spectrum advantage over its larger peers, helping it to drive more subscribers. This will lead the stock to potential upside earnings estimate from Wall Street analysts.
T-Mobile would make up to $6 billion on deal synergies. Also, Sprint’s 2.5 GHz mid-band spectrum will help T-Mobile in supporting its 5G network. Recently, the company just revealed a massive 5G hotspot data plan including 100GB of data for almost $50 per month. This will give a competitive advantage as its rival AT&T and Verizon offers 15 GB and 5 GB data in the same package cost, respectively.
The Bank of America rates the stock as a buy, with a price target of $130 for TMUS stock.
Micron Technology (MU)
Micron Technology, one of the leading chipmakers in the U.S. market, is another favorite when we combine it with 5G technology. The advanced 5G networking needs more memory in the next-generation of mobile phones. This will certainly make the chipmaker stock to benefit from this new evolvement in the technology world.
The new 5G smartphones will increase the demand for DRAM and NAND flash memory in the next couple of years. Micron believes that the new low-end and mid-range 5G smartphones will have the capacity to equip 6 GB of DRAM in comparison with 2 GB and 4 GB in prior 4G devices.
The company also upgraded its first-quarter earnings and revenue outlook about two weeks ago. The increasing solid memory sales in the recent quarter was key progress. But what’s more important is the new picture of the market with 5G evolution in the next few years.
The CEO of Micron, Sanjay Mehrotra highlighted that more than half-billion a smartphones will have 5G support in 2021.
The raised guidance has already driven the stock to its highest 52-week in the past few days. Most of the analysts anticipate the stock to continue with an upward trend in the next year. Micron Technology will bring a big fortune in the long-term.
A well-known semiconductor supplier that also receives royalties in its wireless patents, Qualcomm (QCOM) might not seem to be a big fish in the 5G line but it’s one of those few stocks to look forward to.
Recently, Qualcomm entered into an agreement with satellite TV giant Dish (DISH) for building QCOM’s 5G network. This deal has raised the stake of Qualcomm in the future 5G stocks list.
Moreover, QCOM will have a broader impact on the transition of smartphones from 4G to 5G network. Qualcomm is one of the leading suppliers of microchips used in 5G devices.
The company anticipates around 550 million 5G smartphone shipments in 2021. This will drive Qualcomm towards higher revenue and an increase in stock price.
Bank of America rates QCOM stock as a buy with a price target of $165. While, other analysts expect a median price target of $159 and the highest price target of $194.