The growth potential for 5G stocks is extremely promising and probably highly underestimated given that it doesn’t feel like part of the tech revolution underway next to themes like fusion-based energy and generative AI.
But 5G shouldn’t be underestimated because it represents the next generation of cellular network technology and is expected to revolutionize the way we communicate, work, and play. 5G offers a number of advantages over 4G, including faster speeds, lower latency, and greater capacity. And, since it’s the next-gen phase, it’s going to spread and redefine the threshold.
For starters, 5G can support a wider range of applications, including augmented reality, virtual reality, self-driving cars, and the Internet of Things.
As 5G adoption grows, the demand for 5G-related products and services is expected to increase. This will create opportunities for companies that are involved in the development, deployment, and operation of 5G networks.
With that in mind, we take a look below at some of the most interesting growth stories in the 5G stock space.
Qualcomm (NASDAQ:QCOM) engages in the development, design, and provision of digital telecommunications products and services. It operates through its Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI) segments.
The QCT segment develops and supplies integrated circuits and system software based on technologies for the use in voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses and provides rights to use portions of the firm’s intellectual property portfolio. The QSI segment focuses on opening new or expanding opportunities for its technologies and supporting the design and introduction of new products and services for voice and data communications.
Qualcomm (NASDAQ:QCOM) recently announced, along with Instituto Crescer, the launch of the ASCON program – Student Always Connected, to fourth school in Goiania, Brazil. The program aims to close the digital gap by reimagining the way students learn, and educators teach, by bringing the modern classroom to life and enabling a world where all students are intelligently connected from home, from the classroom or from anywhere.
During Phase I, 120s ACER 511 Chromebooks equipped with the Snapdragon® 7C processor were provided to three school communities in Goiania. Today, more than 100 students and teachers have been provided with these Always On, Always Connected laptops (ACPCs) equipped with Embratel’s mobile LTE connectivity capabilities. The program aims to create an environment of digital inclusion where students have the tools needed to reach their full potential, increasing their digital literacy skills by leveraging the extended learning that ACPCs provide.
“We have already seen how students can benefit from extended learning and the possibilities leveraged by using the devices outside of the school. Through the expansion to a fourth school, we ratify our role in facilitating innovative quality education, which permeates the actions of the program: devices with mobile connectivity anytime and anywhere, training of educators and students, and monitoring.”, says Francisco Soares, VP, Government Affairs, Qualcomm Serviços de Telecomunicações Ltda.
Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -9%.
Qualcomm (NASDAQ:QCOM) managed to rope in revenues totaling $9.3B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -16.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($6.7B against $7.9B, respectively).
Datasea Inc. (NASDAQ:DTSS) is a digital technology corporation engaged in three converging and innovative business segments: 5G messaging, acoustic intelligence, and digital smart city technology in China.
Datasea leverages facial recognition technology and other visual intelligence algorithms, combined with cutting-edge acoustic and non-visual intelligence algorithms, to provide smart city solutions that meet the security needs of residential communities, schools and commercial enterprises. Most recently, in response to the growing utilization of 5G technologies and the overall initiative to utilize Datasea’s technology capabilities to expand business coverage and revenue resources, Datasea has also strategically expanded business coverage to 5G messaging and smart payment solutions.
Datasea Inc. (NASDAQ:DTSS) most recently announced that Shuhai Jingwei Technology Co., Ltd., a subsidiary of the Chinese operating company contractually controlled by the Company, has entered into a 5G Messaging Recharge Service Agreement with Quanzhen Hulian Technology Co. Ltd..
Quanzhen Hulian is an avant-garde service enterprise and serves its clients from multifarious sectors, encompassing new media, smart education, and exhibitions, with top-tier information services such as online mobile phone recharge for all major telecom service providers in China.
The Company believes that the agreement with Quanzhen Hulian strategically places Datasea at the epicenter of the rapidly evolving 5G landscape. By providing consistent 5G message recharge services to Quanzhen Hulian’s end-users, Datasea fortifies its commitment to leading innovation while enhancing its product portfolio, client diversification, and brand recognition. The collaborative approach to developing bespoke systems catering to client needs further underscores Datasea’s client-centric ethos and its dedication to delivering superior customer service.
The agreement contemplates a mutually beneficial arrangement with Quanzhen Hulian procuring recharge services in the range of 10-500 RMB. This transaction has the potential to expand Datasea’s 5G top up business scope, and under the agreement, Quanzhen Hulian estimates that it will purchase up to 5 million RMB (712,900 USD) per month over the next year, subject to final confirmation of orders.
Datasea Inc. (NASDAQ:DTSS) CEO, Liu Zhixin, expressed her enthusiasm for the new partnership, saying, “Our alliance with Quanzhen Hulian symbolizes a pivotal milestone in our journey. It opens the door to new avenues of growth and reaffirms the market’s recognition of our state-of-the-art 5G messaging recharge services.”
Broadcom (NASDAQ:AVGO) is a global technology company, which designs, develops, and supplies semiconductor and infrastructure software solutions. It operates through the Semiconductor Solutions and Infrastructure Software segments.
The Semiconductor Solutions segment manages movement of data in data center, telecom, enterprise, and embedded networking applications. The Infrastructure Software segment provides a portfolio of mainframe, enterprise, and storage area networking solutions.
Broadcom (NASDAQ:AVGO) recently announced that it has delivered Jericho3-AI, enabling the industry’s highest performance fabric for artificial intelligence (AI) networks. Jericho3-AI revolutionizes AI networking with best-in-class capabilities such as perfect load balancing, congestion-free operation, ultra-high radix, and Zero-Impact Failover, all culminating in significantly shorter job completion times for any AI workload.
Jericho3-AI comes to market at a time when the use of AI is skyrocketing. According to a new forecast from International Data Corporation (IDC), global spending on AI will reach $154 billion in 2023 and $300 billion or more by 2026. The 2023 figure represents an increase of 26.9 percent over 2022. Fabrics based on Jericho3-AI will help network operators handle the ever-expanding workloads AI demands will present.
“The benchmark for AI networking is reducing the time and effort it takes to complete the training and inference of large-scale AI models,” said Ram Velaga, senior vice president and general manager, Core Switching Group, Broadcom. “Jericho3-AI delivers significant reduction in job completion time compared to any other alternative in the market.”
And the stock has been acting well over recent days, up something like 7% in that time. Shares of the stock have powered higher over the past month, rallying roughly 10% in that time on strong overall action.
Broadcom (NASDAQ:AVGO) managed to rope in revenues totaling $8.9B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 15.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($12.6B against $7.5B).
Other stocks in the 5G revolution space include Nokia (NYSE:NOK), Ericsson (NASDAQ:ERIC), Verizon (NYSE:VZ), Cisco Systems (NASDAQ:CSCO), and Apple (NASDAQ:AAPL).
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