Lately, there has been a lot of buzz about the fifth and newest generation of wireless networking technology, 5G. The lower latency, that is the time between input and request for data and the network’s response and up to 100 times faster downloads speed, is all set to leave its predecessors 4G and LTE (Long-Term Evolution) miles behind.
With the promise of vast improvements in speed, scale to support all kinds of bandwidth-hungry applications and technologies and responsiveness, 5G technology has been highly sought after since the inception of the idea. Operators believe that they will be able to deliver 5G mobile download speeds in the gigabits-per-second range which will be almost 50 times faster than existing 4G LTE technology.
Let us see how we as traders can benefit from this technology.
When a new technology hits the market, the companies associated with it are likely to be affected by it and technology as anticipated as this one is expected to add a boom to the companies.
Top 5G stocks that are expected to give great results once the technology hits the market.
- Taiwan Semiconductor
- Qorvo and Skyworks Solutions
- BT Group
- Deutsche Telekom
For access to faster connectivity, we will need devices that we use such as smartphones, tablets, wearable tech and other smart technology. Users will be inclined to buy 5G-enabled devices in order to reap the benefits of this new technology. This will allow everyday devices to become smarter, faster and capable of offering a wider array of services.
Here we must consider the fact that the sales to new phones and other smart technology have nosedived in the first half of 2020. However, the 5G technology is expected to cause a revival in hardware sales in the coming months once it is live and functioning as the price of 5G falls and more consumers upgrade their devices.
Let’s take a small example as to how the above companies can benefit from 5G technology. Over the past few years, the main feature for Apple and Samsung’s new smartphones are the upgrades that had been made to the camera’s features, like change in resolutions and upgraded megapixels.
These smartphone behemoths follow the trend to launching new models in the fall and this year it is expected to be all about 5G and whether or not they will make a huge push this year or next, and how this will impact sales over the short-term.
The next order of business is to discuss the telecoms industry which is at the heart of 5G technology. They will be providing the wireless networks that supply 5G to people and businesses. Additionally, the 5G infrastructure providers will also be a part of this booming industry. This fast wireless service will require a lot more infrastructure than 4G because it needs to run on higher radio frequency bands to deliver faster speeds.
As one can deduce that once 5G technology hits the market the companies responsible for bringing this service to us is most likely to soar in the share market. This may necessarily not mean that it will be a short-term return. Since the technology will take some time to settle down, this is expected to be medium to long-term growth. Therefore, for making informed trading decisions please always go through the past performances of the companies, learn a little about their trend and see how they behaved when new technology was introduced in the market in the past. Good luck!