In this article, we will take a look at the 10 best 5G stocks to invest in according to analysts.
5G technology is the fifth generation of wireless cellular technology that offers significant improvements in speed, latency, and capacity. The 5G technology industry is expected to experience rapid growth, fueled by the technology’s potential to revolutionize various sectors such as telecommunications, the Internet of Things (IoT), and private networks. According to a report by The Business Research Company, the global 5G technology market was valued at $27.91 billion in 2024. The market is expected to grow exponentially at a compound annual growth rate (CAGR) of 46.7% during 2025-2029 to reach a value of $210.98 billion by the end of the forecast period. In 2024, North America was the largest region in the global 5G technology market.
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This growth in the 5G technology industry is supported by the growing demand for high-speed data connections and low latency, which are crucial for various new technologies and applications. Technologies like self-driving cars, advanced gaming, and live streaming require high-speed data connections. Additionally, the rise of new technologies such as IoT, Artificial Intelligence (AI), and automation is leading to a surge in the amount of data created, further driving the demand for 5G connectivity.
In March 2024, CNBC reported that telecom operators are still rolling out 5G wireless mobile networks, but are already talking about creating “5.5G” or “5G Advanced.” This was a major topic of discussion at the Mobile World Congress in Barcelona, where leading telecom companies shared their plans for the development of a new generation of mobile internet technology.
This technology could power more advanced applications in the future, including mixed-reality headsets. Additionally, its applications could also include self-driving cars, unpiloted air taxis, and smart manufacturing.
Milind Kulkarni, the vice president and head of InterDigital’s wireless labs, told CNBC that the main reason for developing 5G Advanced standards is to make 5G more commercially relevant by expanding into different industries, resolving deployment problems, and continuing to improve the technology to create a bridge towards the next generation of wireless networks, known as 6G.
He further pointed out that researchers have been working on new enterprise-specific features for 5G Advanced that are designed for businesses. These include network slicing, the integration of private and public networks, and customized applications that are tailored to meet the specific needs of different industries.
The benefits and applications of 5G technology seem to be vast and virtually boundless, with significant opportunities for innovation and growth. With this background in mind, let’s take a look at the 10 best 5G stocks to invest in according to analysts.
A professional technician using specialized tools to maintain a modern 5G cell tower.
Methodology
To compile our list of the 10 best 5G stocks to invest in according to analysts, we reviewed our own rankings, financial media reports, and various online resources to compile a list of the best 5G stocks. Next, we focused on the top 5G stocks that analysts believe have the most potential for growth. We ranked the 10 best 5G stocks to buy based on their average price target upside potential according to analysts as of January 24, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best 5G Stocks to Invest in According to Analysts
10. Verizon Communications Inc. (NYSE:VZ)
Average Price Target Upside Potential According to Analysts: 18.87%
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company and the largest wireless carrier in the US. It is also one of the largest telecommunications companies in the world by revenue. Verizon Communications Inc. (NYSE:VZ) generated more than $134 billion in revenue in 2024. The company’s network technologies include fiber optics, 4G LTE, and 5G. VZ ranks among the best 5G stocks to buy according to analysts.
The company is strategically focused on expanding and improving its 5G network and fiber reach. Aristotle Capital Management, LLC, an investment management company, discussed Verizon Communications Inc. (NYSE:VZ) in its “Value Equity Strategy” third quarter 2024 investor letter. The investment management firm noted that Verizon has expanded through strategic acquisitions and innovations, particularly in wireless technology, which serves more than 90 million postpaid and 20 million prepaid phone customers and accounts for approximately 70% of the company’s revenue. The firm noted that in early September 2024, Verizon Communications Inc. (NYSE:VZ) announced its $20 billion acquisition of Frontier, the largest pure-play fiber internet provider in the US. This transaction will expand Verizon’s fiber network to 31 states.
Aristotle Capital Management identified a number of quality characteristics for Verizon Communications Inc. (NYSE:VZ). These included a strong brand reputation for network reliability and speed, the widest wireless coverage in the industry, and its position at the forefront of 5G technology. The investment management firm also pointed out potential catalysts that will cause VZ’s stock price to rise over the next 3-5 years. These included increased free cash flow generation as prior large investments on 5G rollout mature and enhanced revenue as more consumers move to 5G-enabled devices. Aristotle Capital Management believes that Verizon Communications Inc.’s (NYSE:VZ) stock is currently offered at a discount to the company’s intrinsic value.
9. Telefónica S.A. (NYSE:TEF)
Average Price Target Upside Potential According to Analysts: 19.61%
Number of Hedge Fund Holders: 9
Telefónica S.A. (NYSE:TEF) is a Spanish multinational telecommunications company. Operating in Europe and the Americas, it is one of the world’s largest telephone operators and mobile network providers. While the company operates in 12 countries, it has a presence in 41 markets around the world. Telefónica S.A. (NYSE:TEF) is one of the best 5G stocks to buy according to analysts.
The company has been investing in fiber and 5G infrastructure to drive customer growth and satisfaction. As of September 2024, Telefónica S.A. (NYSE:TEF) reported 393 million accesses, up 2% versus September 2023. The company reported notable growth in both fiber and mobile contract customers.
Telefónica S.A. (NYSE:TEF) is actively looking to improve 5G technology and expand its 5G network. This strategic focus on 5G expansion seems to be paying off. By the end of September 2024, Telefónica S.A. (NYSE:TEF) reached 71% 5G coverage in its 4 core markets to meet its target of reaching 70% more than two years ahead of schedule. By September 2024, 5G technology covered 90% of the population in Spain, 97% in Germany, 68% in the UK, and 57% in Brazil.
8. TELUS Corporation (NYSE:TU)
Average Price Target Upside Potential According to Analysts: 22.04%
Number of Hedge Fund Holders: 16
TELUS Corporation (NYSE:TU) is a Canadian holding company and conglomerate that ranks among the best 5G stocks to buy. Through its subsidiaries, it offers a wide range of services including telephony, television, data and internet, and wireless services. TELUS Corporation’s (NYSE:TU) 5G network is available in markets across Canada, including Vancouver, Toronto, Montreal, Calgary, and Edmonton.
The company is actively looking to introduce new products and expand to new markets. TELUS Corporation (NYSE:TU) is rolling out its PureFibre 5 Gig service that uses fiber optic cable technology to deliver unrivaled speed. In November 2024, the corporation launched its PureFibre Internet in Ontario and Quebec to offer customers access to fast internet technology. The PureFibre Internet offers download speeds of up to 1.5 Gbps and upload speeds of 1.0 Gbps. By combining a fiber-to-the-home network with Wi-Fi 6 hardware, PureFibre Internet provides fast and reliable connectivity that doesn’t lag.
TELUS Corporation’s (NYSE:TU) strategic focus on customer-centric services has led to strong customer growth. In the third quarter of 2024, the company reported total customer net additions of 347,000. This figure includes mobile phone customer additions of 130,000, and robust gains in connected devices with 159,000 net additions, driven by 5G and IoT solutions.
7. Vodafone Group Public Limited Company (NASDAQ:VOD)
Average Price Target Upside Potential According to Analysts: 24.18%
Number of Hedge Fund Holders: 23
Vodafone Group Public Limited Company (NASDAQ:VOD) is a British multinational telecommunications company that provides mobile and fixed services in 15 countries and partners with mobile networks in 45 more countries around the world. Vodafone Group Public Limited Company (NASDAQ:VOD) first launched 5G in the UK in July 2019. The company offers 5G in a number of countries, including Italy, Spain, Germany, and Ireland. It is actively looking to launch 5G in more countries and growing its commercial 5G services business.
The company is focused on innovation and enhancing its services. Vodafone Group Public Limited Company (NASDAQ:VOD) is rolling out 5G Standalone technology, known as 5G Ultra. This technology does not rely on 4G and enhances network capabilities beyond just faster download and upload speed, such as network slicing and Mobile Private Networks (MPNs) and lower latency. Network slicing allows the use of the 5G network for a specific use by specific customers such as a business or public body. For instance, network slicing can be used to establish 5G Mobile Private Networks (MPNs) for industrial and manufacturing purposes.
Additionally, Vodafone Group Public Limited Company’s (NASDAQ:VOD) business strategy also includes partnerships and mergers. In December 2024, the company’s proposed merger with Three in the UK was approved by the Competition and Markets Authority. This historic move will create one of Europe’s most advanced 5G networks. Vodafone Group Public Limited Company (NASDAQ:VOD) and Three have committed to invest £11 billion to transform the UK’s telecoms landscape. The new network will reach over 50 million customers and offer much better quality, more reliability, and improved capacity for handling ever-increasing data demand. The merger is expected to be finalized during the first half of 2025. Vodafone Group Public Limited Company (NASDAQ:VOD) will own 51% of the equity after three years, the company will have the option to acquire the remaining 49% stake from Hutchison, subject to certain conditions.
6. BCE Inc. (NYSE:BCE)
Average Price Target Upside Potential According to Analysts: 25.67%
Number of Hedge Fund Holders: 20
BCE Inc. (NYSE:BCE) is a Canadian communications company that provides television, internet, wireless, media, and technology services. As Canada’s largest communications company, it provides 5G+, 5G, and 4G LTE wireless services. BCE is one of the best 5G stocks to invest in according to analysts.
The company is strategically focused on enhancing its 5G capabilities with a clear commitment to innovation and improving customer satisfaction. In May 2024, BCE Inc. (NYSE:BCE) deployed a 3800 MHz spectrum in select areas of Toronto and Kitchener-Waterloo to boost its 5G+ network and offer customers the fastest mobile technology in Canada. The company aims to deliver superior network performance and faster mobile speeds for downloading, streaming high-resolution videos, uploading content, and cloud photo backups.
BCE is actively looking to expand its market presence while also enhancing its technological capabilities. On November 4, 2024, BCE Inc. (NYSE:BCE) announced that it had entered into a definitive agreement to acquire Ziply Fiber for a transaction value of approximately C$7.0 billion. This move will see the company make a significant expansion into the US market and diversify its operations. BCE Inc. (NYSE:BCE) aims to become a major fiber internet provider in North America and unlock significant growth opportunities.
5. Comcast Corporation (NASDAQ:CMCSA)
Average Price Target Upside Potential According to Analysts: 27.59%
Number of Hedge Fund Holders: 72
Comcast Corporation (NASDAQ:CMCSA) is an American media and technology company that is focused on telecommunications and entertainment. It is one of the world’s largest broadcasting and cable television companies. The company is also one of the biggest providers of home internet services and telephone services in the US. Comcast Corporation (NASDAQ:CMCSA) is one of the best 5G stocks to invest in according to analysts. The company’s Xfinity Mobile service offers 5G coverage nationwide in the US.
The company operates an extensive next-generation network in the US that reaches more than 63 million homes and businesses. It delivers symmetrical gig-plus speeds and offers extensive wireless coverage with more than 23 million WiFi hotspots and a reliable 5G network. Since 2018, Comcast Corporation (NASDAQ:CMCSA) has invested over $20 billion to fund the largest network upgrade in the US. In 2023, the company expanded its network to over a million new customers. CMCSA is on track to do this again in 2024.
The company is strategically focused on investing in business growth and innovation. In December 2024, Comcast Corporation (NASDAQ:CMCSA) moved its 5G wireless core from on-premise infrastructure into Amazon Web Services (AWS). This new cloud-based network will help Xfinity Mobile and Comcast Business Mobile offer customers more scalable, secure, and cost-effective 5G wireless services using Comcast’s licensed spectrum across the US.
4. American Tower Corporation (NYSE:AMT)
Average Price Target Upside Potential According to Analysts: 29.40%
Number of Hedge Fund Holders: 73
American Tower Corporation (NYSE:AMT) is an American real estate investment trust (REIT) that provides the infrastructure for modern digital communications. It owns, develops, and operates wireless and broadcast communications infrastructure in 24 countries across 6 continents. With a portfolio of over 148,000 communications sites and a network of data centers in the US, American Tower Corporation (NYSE:AMT) serves mobile network operators, major telecommunications companies, and media and broadband providers. AMT ranks among the best 5G stocks to buy.
The company plays a crucial role in the 5G industry by supporting the networks through its wireless infrastructure sites. In the third quarter of 2024, American Tower Corporation (NYSE:AMT) reported ongoing growth and expansion of 5G coverage, driven by carrier rollouts in the US and Europe. The company is seeing a healthy pipeline of new business fueled by network upgrades and coverage expansion.
Mar Vista Investment Partners, LLC, an investment management company, has a positive outlook on American Tower Corporation (NYSE:AMT). In its “Strategic Growth Strategy” third quarter 2024 investor letter, the investment management firm noted that AMT experienced a significant rebound in the third quarter of 2024 by surging nearly 20%. This appreciation was driven by the decrease in interest rates. However, Mar Vista Investment Partners believe that the long-term global opportunities for 5G deployment, edge-of-network computing, and datacenters, remain promising and are not fully reflected in American Tower Corporation’s (NYSE:AMT) current stock price.
3. Crown Castle Inc. (NYSE:CCI)
Average Price Target Upside Potential According to Analysts: 33.35%
Number of Hedge Fund Holders: 34
Crown Castle Inc. (NYSE:CCI) is a real estate investment trust (REIT) and provider of shared communications infrastructure in the US. The company owns and leases over 40,000 cell towers and about 90,000 route miles of fiber supporting small cells and fiber solutions across major US markets. Crown Castle Inc. (NYSE:CCI) plays a vital role in the telecommunications infrastructure market, driven by the rapid rollout of 5G networks and the growing demand for high-speed connectivity.
The company has many clients, including wireless carriers, government agencies, and other businesses. Crown Castle Inc. (NYSE:CCI) has established significant partnerships with major wireless carriers to help provide 5G services. In January 2022, the company signed a 12-year agreement with T-Mobile US to support the continued build-out of T-Mobile’s 5G nationwide network with access to Crown Castle’s towers and small cell locations. Crown Castle Inc. (NYSE:CCI) has provided crucial support to T-Mobile, which offers one of the country’s largest, fastest, and most reliable 5G networks. This agreement is also expected to help Crown Castle Inc. (NYSE:CCI) generate long-term revenue growth. Previously, in January 2021, the company announced an agreement to support Verizon’s 5G Ultra Wideband and 5G Nationwide deployment by leasing 15,000 new small cells.
The company is positioned well to benefit from the rapid roll-out of 5G services by wireless carriers, which is driving demand for communication infrastructure required to support the fast data. Crown Castle Inc. (NYSE:CCI) is also strategically focused on improving profitability and operational excellence. In the fourth quarter of 2024, the company concluded discussions with its customers and decided to cancel about 7,000 greenfield small cell nodes. The cancellation is expected to help increase the value of the remaining nodes and also improve the company’s capital efficiency in the future.
2. América Móvil SAB de CV (NYSE:AMX)
Average Price Target Upside Potential According to Analysts: 40.20%
Number of Hedge Fund Holders: 8
América Móvil SAB de CV (NYSE:AMX) is a Mexican telecommunications company that is primarily focused on communications, information technology, and digital content. Offering its services across 22 countries in Latin America and Europe, it is one of the world’s largest mobile network operators in the world. América Móvil SAB de CV (NYSE:AMX) has the biggest 5G network in Latin America and it also owns Telcel, a Mexican wireless telecommunications company that offers 5G services. AMX ranks among the best 5G stocks to buy according to analysts.
In the third quarter of 2024, the company attracted 1.8 million subscribers, including 1.4 million postpaid subscribers. Brazil contributed 291 thousand while Colombia added 159 thousand. Additionally, América Móvil SAB de CV (NYSE:AMX) successfully expanded its broadband services by connecting 327,000 new accesses in the quarter.
The company is focused on growing its 5G business. In April 2024, América Móvil SAB de CV (NYSE:AMX) announced that one of the main goals for its $7 billion capital expenditure budget forecast for 2024 was 5G expansion. In October 2024, América Móvil SAB de CV (NYSE:AMX) announced the consolidation of ClaroVTR into its operations in October 2024. This move positions the company as a major telecommunication service provider in Chile by providing integrated services and next-generation offerings through its 5G network. To enhance its competitive edge while also offering better quality and speed to customers, the company aims to continue investing in 5G technology in 2025 across its markets in Latin America.
1. Rogers Communications Inc. (NYSE:RCI)
Average Price Target Upside Potential According to Analysts: 65.51%
Number of Hedge Fund Holders: 24
Rogers Communications Inc. (NYSE:RCI) is a Canadian communications and media company that is focused on wireless communications, cable television, telephony and internet services. The company has one of the most extensive and advanced high-speed wireless networks in Canada. It was also the first Canadian company to commercially launch a 5G network. Rogers Communications Inc. (NYSE:RCI) offers postpaid and prepaid wireless services under the Rogers, chatr, and Fido brands.
The company is strategically investing in enhancing connectivity, expanding 5G coverage, and improving broadband speeds. In April 2023, the company completed a historic merger with Shaw Communications to combine Canada’s largest 5G network with a coast-to-coast wireline company with fiber-powered internet available to nearly 70% of Canadian households. Rogers Communications Inc. (NYSE:RCI) also announced plans to invest $2.5 billion over the next 5 years to improve 5G in existing communities and expand to 40 new communities in Western Canada.
Additionally, the company aims to invest $3 billion in broadband to provide faster speeds to more than 4.5 million homes from Northern Ontario through to British Columbia. Rogers Communications Inc. (NYSE:RCI) is actively working to connect more low-income Canadians while also making 5G services more affordable. In the third quarter of 2024, the company invested $977 million in capital expenditures to further strengthen and grow its network. During the quarter, Rogers Communications Inc. (NYSE:RCI) added 227,000 net combined mobile phone and internet customers.
Overall, RCI ranks first among the 10 best 5G stocks to invest in according to analysts. While we acknowledge the potential of 5G companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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