The 5G revolution is picking up steam, and investors are on the prowl for the best 5G stocks to buy in March. This next-gen technology is set to revolutionize telecommunications and boasts speeds up to 100X faster than 4G.
With significantly lower latency, 5G can process more data and shorten the time it takes to travel between devices. This translates into smoother streaming, faster downloads and the potential to unlock entirely new applications. As this emerging technology continues to permeate global markets, investor interest for 5G technology will surge over the next decade.
Now, let’s discover the three best 5G stocks to buy in March 2024!
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) stands in the top spot for the best 5G stocks to buy in March. The semiconductor behemoth is a leader in the 5G revolution and is set to benefit from IoT and AI tailwinds in FY24.
Qualcomm’s technological prowess extends to various mobile communications standards, including the widely used 4G and 5G networks. The company holds a significant number of patents for these technologies, along with CDMA2000, TD-SCDMA and WCDMA. Additionally, it has begun an aggressive push into the generative AI market with the release of Snapdragon X Elite.
In Qualcomm’s latest quarterly results, revenue increased 5% YOY to $9.9 billion. EPS increased by 24% to $2.46 per share. It continues to see positive signs for a rebound in the handset market, and continue to make key investments into generative AI. This includes the release of the company’s AI CPU called Snapdragon X Elite, expected to deliver 2X faster performance. Furthermore, it is capable of running generative AI models with over 13 billion parameters set to power the PC market in mid-2024.
T-Mobile (TMUS)
T-Mobile (NASDAQ:TMUS) is a major American wireless network operator, boasting the title as the third largest telecommunications company in the United States. The company recently closed off a strong 2023 fiscal year, and management has a strong outlook for 2024.
T-Mobile offers a wide range of services for its customers, including mobile phone plans with data, voice and text options. As of December 2023, the company boasted nearly 118 million subscribers and have the largest 5G footprint covering 98% of Americans. It focuses on network connectivity and high data speeds, boasting a robust 5G network covered by ultra capacity 5G. This translated into industry-leading growth adding 1.3 million net account additions in 2023.
In FY23, T-Mobile’s revenue was flat but the company saw significant bottom line and FCF growth. Net income increased 221% YOY to $8.3 billion, with adjusted FCF up 77% to $13.6 billion. Management is forecasting a strong outlook for 2024, guiding net customer additions of more than 5 million and adjusted EBITDA between $31.3 – $31.9 billion. This makes TMUS stock one of the top 5G stocks to buy before it makes new highs in 2024.
Defiance Next Gen Connectivity ETF (FIVG)
Defiance Next Gen Connectivity ETF (NYSE:FIVG) is not a 5G stock but is one of the perfect ways to gain exposure to 5G stocks. It is an exchange-traded fund (ETF) that is designed to capture the growth and commercialization of 5G network infrastructure.
Defiance Next Gen Connectivity ETF invests in a basket of the top companies across the 5G ecosystem. This includes a wide range of areas including carrier equipment, 5G chips, radio communications, cloud computing and mobile network operators. FIVG seeks to track the BlueStar Global 5G Communications Index, and holds 49 U.S. listed stocks with diversified exposure to 5G technology.
Some of the industry giants in the FIVG ETF include Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Qualcomm and Apple (NASDAQ:AAPL). The ETF may be suitable for investors who want to diversify and not put all their eggs into one basket. However, it is important to know that the ETF has an expense ratio of .30%. If you’re a long-term believer in the global rollout of 5G network infrastructure, FIGV should be kept on your radar in March 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
