12 Best 5G Stocks To Invest In Right Now

Published on August 13, 2021 at 11:01 am by Ma’k Almario in Hedge Funds, News

In this article, we will be looking at the 12 best 5G stocks to invest in right now. To skip our detailed analysis of these stocks and the 5G industry, you can go directly to see the 5 Best 5G Stocks To Invest In Right Now.

The 5G industry continues to thrive with its potential to shape the future of global connectivity. During the 2021 Tokyo Olympics, Japan demonstrated its 5G technology with its 5G network-powered speedy facial recognition ID. The technology was used to check for security and at the same time, fuel Toyota Motor Corporation’s (NYSE: TM) e-Palette vehicles to transport athletes around the Olympic Village.

Another example of countries developing in the 5G industry are Hong Kong with its China Mobile Limited and Beijing with its China Broadcasting Network Ltd. In January 2021, the companies announced a collaboration to build 400,000 700 MHz 5G base stations in China by the end of 2021. While, according to research from JPMorgan, the North American 5G market will surpass $180 billion by 2030.

Some of the notable 5G stocks to invest in right now are Verizon Communications Inc. (NYSE: VZ), Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Apple Inc. (NASDAQ: AAPL), and Nokia Corporation (NYSE: NOK).

One of the pioneer 5G companies in the US is telecom giant Verizon Communications Inc. (NYSE: VZ). In 2015, Verizon Communications Inc. (NYSE: VZ) launched the first 5G Technology Forum (5GTF), which brought together industry leaders such as Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), and Samsung Electronics Co., Ltd. to develop and deploy 5G technology. In the second quarter of 2021, Verizon Communications Inc.’s (NYSE: VZ) revenue grew 10.89% to $33.76 billion, driven by strong demand in 5G phone and wireless service adoption.

According to JPMorgan data, in October 2020, Apple Inc. (NASDAQ: AAPL) unveiled the first line of iPhones to support 5G connectivity, accounting for 47% of the 5G smartphone market. In July 2021, Apple Inc. (NASDAQ: AAPL) announced that all its scheduled iPhone releases for 2022 will be 5G-capable. Shares of Apple Inc. (NASDAQ: AAPL) jumped 18.60% in the last three months and 28.84% year-to-date.

Another notable stock in the 5G industry is Finnish 5G network provider Nokia Corporation (NYSE: NOK). In July 2021, Nokia Corporation (NYSE: NOK) was awarded a contract by Taiwan Star Telecom to expand its 5G network in the country. Shares of Nokia Corporation (NYSE: NOK) increased by 5% in the last month.

Photo by Mario Caruso on Unsplash

Our Methodology

Insider Monkey tracks data of about 866 hedge funds. We used this data to pick the 5G stocks most popular among these funds. We also chose stocks with positive analyst ratings, solid fundamentals, and growth catalysts.

Why pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this context in mind, here is our list of the 12 best 5G stocks to invest in right now.

Best 5G Stocks To Invest In Right Now

12. Gilat Satellite Networks Ltd. (NASDAQ: GILT)

Number of Hedge Fund Holders: 8

Gilat Satellite Networks Ltd. (NASDAQ: GILT) ranks 12th on the list of 12 best 5G stocks to invest in right now. Gilat is a networking technology company that specializes in satellite-based solutions and services. The company is based in Israel and was founded in 1987. GILT first introduced its 5G-ready high-speed modem in 2019 through its Telesat’s Phase 1 LEO satellite.

In February 2021, Gilat Satellite Networks Ltd. (NASDAQ: GILT) launched its next-generation Very Small Aperture Terminal (VSAT) “Aquarius”. Aquarius was designed to support LEO/MEO constellations and 5G networks.

Gilat Satellite Networks Ltd. (NASDAQ: GILT) has a market cap of $597.27 million and currently offers a dividend yield of 9.37%. In the second quarter of 2021, Gilat Satellite Networks Ltd. (NASDAQ: GILT) reported an EPS of $0.00, beating estimates by $0.04. The company’s revenue came in at $56.9 million, up 49% year-over-year and beating estimates by $3.45 million. Shares of Gilat Satellite Networks Ltd. (NASDAQ: GILT) gained 17.58% in the last three months and 87.74% in the last twelve months.

Just like Verizon Communications Inc. (NYSE: VZ), Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Apple Inc. (NASDAQ: AAPL), and Nokia Corporation (NYSE: NOK), Gilat Satellite Networks Ltd. (NASDAQ: GILT) is one of the best 5g stocks to invest in right now.

By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Gilat Satellite Networks Ltd. (NASDAQ: GILT) worth roughly $30.2 million. This is compared to 5 hedge funds in the previous quarter with a total stake value of around $19.6 million.

11. Nokia Corporation (NYSE: NOK)

Number of Hedge Fund Holders: 21

Nokia Corporation (NYSE: NOK) ranks 11th on the list of 12 best 5G stocks to invest in right now. The multinational telecommunications company operates in over 130 countries and was founded in 1865.

Nokia Corporation (NYSE: NOK) first introduced 5G to its customers in 2017 when the company tested a 5G connection in Finland using the 5GTF standard which was backed by Verizon Communications Inc. (NYSE: VZ), and Intel Corporation (NASDAQ: INTC) architecture-based equipment.

Earlier this year, Nokia Corporation (NYSE: NOK) and Taiwan Mobile entered a partnership to launch the first New Radio Carrier Aggregation (NR CA).

On August 3rd, Societe Generale analyst Aleksander Peterc raised his price target on Nokia Corporation (NYSE: NOK) to $7.74 per share from $6.21 per share and kept his Buy rating on the shares.

The company has a market cap of $34.79 billion. In the second quarter of 2021, Nokia Corporation (NYSE: NOK) reported an EPS of $0.11, beating estimates by $0.05. The company’s second-quarter revenue came in at $6.32 billion, up 4% year-over-year and beating estimates by $193.68 million. Shares of Nokia Corporation (NYSE: NOK) gained 22% in the past three months and 53.96% year-to-date.

Just like Verizon Communications Inc. (NYSE: VZ), Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), and Apple Inc. (NASDAQ: AAPL), Nokia Corporation (NYSE: NOK).

By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Nokia Corporation (NYSE: NOK) worth approximately $352 million. This is compared to 19 hedge funds in the previous quarter with a total stake value of roughly $186 million.

10. Analog Devices, Inc. (NASDAQ: ADI)

Number of Hedge Fund Holders: 50

Analog Devices, Inc. (NASDAQ: ADI) ranks 10th on the list of 12 best 5G stocks to invest in right now. The Massachusetts-based semiconductor company produces data converters, radiofrequency, microelectromechanical systems technology, and other sensors.

In March 2021, Analog Devices, Inc. (NASDAQ: ADI) launched its Application-Specific Integrated Circuit (ASIC)-based radio platform O-RAN. The platform is equipped with the fundamental functionality required in an O-RAN compliant 5G radio unit.

On July 26th, Analog Devices, Inc. (NASDAQ: ADI) was initiated at an Equal Weight rating with a $170 price target from Wells Fargo analyst Gary Mobley. The analyst believes shares of Analog Devices, Inc. (NASDAQ: ADI) may perform similarly to those in its equal.

In the second quarter of 2021, Analog Devices, Inc. (NASDAQ: ADI) reported an adjusted EPS of $1.54, beating estimates by $0.09. The company’s revenue in the second quarter of 2021 came in at $1.66 billion, up 26% year-over-year and beating estimates of $57.29 million. Shares of Analog Devices, Inc. (NASDAQ: ADI) gained 13.37% in the last three months and 46.71% in the last twelve months.

Just like Verizon Communications Inc. (NYSE: VZ), Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Apple Inc. (NASDAQ: AAPL), and Nokia Corporation (NYSE: NOK), Analog Devices, Inc. (NASDAQ: ADI) is one of the best 5g stocks to invest in right now.

By the end of the first quarter of 2021, 50 hedge funds out of the 866 tracked by Insider Monkey held stakes in Analog Devices, Inc. (NASDAQ: ADI) worth approximately $4.86 billion. This is compared to 58 hedge funds in the previous quarter with a total stake value of around $5.31 billion.

Weitz Investment Management mentioned Analog Devices, Inc. (NASDAQ: ADI) in its Q4 2020 investor letter:

“Analog Devices benefited from several global, long-wave trends such as automation, electric vehicles, and the 5G network build-out. The company’s quarterly sales into the auto, industrial, and communications sectors exceeded expectations, giving the stock a lift.”

9. NXP Semiconductors N.V. (NASDAQ: NXPI)

Number of Hedge Fund Holders: 53

NXP Semiconductors N.V. (NASDAQ: NXPI) ranks 9th on the list of 12 best 5G stocks to invest in right now. The semiconductor manufacturer was founded in 2006 and operates in over 35 countries.

In June, NXP Semiconductors N.V. (NASDAQ: NXPI) introduced multi-chip modules for 5G infrastructure. NXPI integrated Gallium Nitride (GaN) technology into its multi-chip modules increasing 5G energy efficiency by 8%.

This August, Truist analyst William Stein raised the price target of NXP Semiconductors N.V. (NASDAQ: NXPI) to $244 per share from $233 per share and kept his Buy rating on the stock. The analyst highlighted the company’s solid quarterly results and stronger outlook.

In the second quarter of 2021, NXP Semiconductors N.V. (NASDAQ: NXPI) reported an EPS of $2.39, beating estimates by $0.07. The company’s second-quarter revenue came in at $2.60 billion, up 43% year-over-year and beating estimates by $19.51 million. NXP Semiconductors N.V. (NASDAQ: NXPI) gained 79.07% in the last twelve months and 36.63% year-to-date.

Just like Verizon Communications Inc. (NYSE: VZ), Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Apple Inc. (NASDAQ: AAPL), and Nokia Corporation (NYSE: NOK), NXP Semiconductors N.V. (NASDAQ: NXPI) is one of the best 5g stocks to invest in right now.

By the end of the first quarter of 2021, 53 hedge funds out of the 866 tracked by Insider Monkey held stakes in NXP Semiconductors N.V. (NASDAQ: NXPI) worth approximately $1.71 billion. This is compared to 66 hedge funds in the previous quarter with a total stake value of approximately $2.25 billion.

ClearBridge Investments mentioned NXP Semiconductors N.V. (NASDAQ: NXPI) in its Q1 2021 investor letter:

“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns, and one-off production delays as well as demand resilience in areas like autos and smartphones. Two recent additions, specialty semiconductor maker NXP Semiconductors and semiconductor capital equipment firm ASML also delivered a strong performance in the first quarter. NXP rose as auto production ramped up and electric vehicle sales continued to expand. ASML, which operates in a virtual monopoly for high-end chipmaking equipment, began to exert pricing power as it works through an order backlog that has stretched to over a year. Both are Dutch-based companies and out-of-benchmark names that provide access to different growth profiles than are available in the U.S. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurt wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”

8. Broadcom Inc. (NASDAQ: AVGO)

Number of Hedge Fund Holders: 53

Broadcom Inc. (NASDAQ: AVGO) is a semiconductor and infrastructure software manufacturer based in California. The company first introduced its 5G Wifi SOCs in 2013 through various mobile phones such as Samsung Electronics Co. Ltd.’s Galaxy S4 and LG Electronics Inc.’s Nexus 5, among others. Broadcom Inc. (NASDAQ: AVGO) ranks 8th on the list of 12 best 5G stocks to invest in right now.

In 2020, Broadcom Inc. (NASDAQ: AVGO) sold over $15 billion worth of wireless components to Apple Inc. (NASDAQ: AAPL). Analysts suspect that the components will be used for Apple’s 5G compatible iPhones.

On July 8th, Oppenheimer analyst Rick Schafer raised the price target on Broadcom Inc. (NASDAQ: AVGO) from $700 per share to $925 per share, while keeping an Outperform rating on the stock. Schafer highlighted the strong demand for the semiconductor group.

In the second quarter of 2021, Broadcom Inc. (NASDAQ: AVGO) reported an EPS of $6.62, beating estimates by $0.16. The company’s second-quarter revenue was $6.61 billion, up 15% year-over-year and beating estimates by $103.58 million. Shares of Broadcom Inc. (NASDAQ: AVGO) gained 9.59% in the past three months and 48.83% year-to-date.

Just like Verizon Communications Inc. (NYSE: VZ), Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Apple Inc. (NASDAQ: AAPL), and Nokia Corporation (NYSE: NOK), Broadcom Inc. (NASDAQ: AVGO) is one of the best 5g stocks to invest in right now.

By the end of the first quarter of 2021, 53 hedge funds out of the 866 tracked by Insider Monkey held stakes in Broadcom Inc. (NASDAQ: AVGO) worth roughly $3.31 billion. This is compared to 59 hedge funds in the previous quarter with a total stake value of approximately $3.34 billion.

ClearBridge Investments mentioned Broadcom Inc. (NASDAQ: AVGO) in its Q2 2021 investor letter:

“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience, and consistency for the Strategy. We think these companies should comprise just under half of the portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.

Broadcom has delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”

7. Verizon Communications Inc. (NYSE: VZ)

Number of Hedge Fund Holders: 69

Verizon Communications Inc. (NYSE: VZ) ranks 7th on the list of 12 best 5G stocks to invest in right now. Verizon Communications Inc. (NYSE: VZ) is a multinational telecommunication company founded in 1983. The company started using 5G technology in 2018 after the rollout of Verizon 5G in select cities in the U.S. Today, Verizon’s 5G Ultra Wideband is available in over 35 countries.

This July 22nd, Cowen raised the price target of Verizon Communications Inc. (NYSE: VZ) to $68 per share from $66 per share and kept its Outperform rating on the stock. Analyst Colby Synesael highlighted the stock as one of the best defensive value names in its peer group.

In the second quarter of 2021, Verizon Communications Inc. (NYSE: VZ) reported an EPS of $1.37, beating estimates of $0.07. The company’s second-quarter revenue was $33.76 billion, up 10.89% year-over-year and beating estimates by $1.03 billion. After strong quarterly results, Verizon Communications Inc. (NYSE: VZ) raised its FY2021 adjusted EPS to $5.25-$5.35 per share from $5.00-5.15 per share.

Just like Intel Corporation (NASDAQ: INTC), QUALCOMM Incorporated (NASDAQ: QCOM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC), Apple Inc. (NASDAQ: AAPL), and Nokia Corporation (NYSE: NOK), Verizon Communications Inc. (NYSE: VZ) is one of the best 5g stocks to invest in right now.

By the end of the first quarter of 2021, 69 hedge funds out of the 866 tracked by Insider Monkey held stakes in Verizon Communications Inc. (NYSE: VZ) worth roughly $11.38 billion. This is compared to 67 hedge funds in the previous quarter with a total stake value of around $10.5 billion.

Miller/Howard Investments mentioned Verizon Communications Inc. (NYSE: VZ) in its Q1 2021 investor letter:

“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”

6. QUALCOMM Incorporated (NASDAQ: QCOM)

Number of Hedge Fund Holders: 73

Ranking 6th on the list of 12 best 5G stocks to invest in right now is QUALCOMM Incorporated (NASDAQ: QCOM). The California-based wireless technology provider specializes in 5G, 4G, CDMA2000, and WCDMA mobile communication standards.

Earlier this year, QUALCOMM Incorporated (NASDAQ: QCOM) created the first 5G mmWave data link that can support a carrier bandwidth of 200 MHZ.

KeyBanc analyst John Vinh raised the price target on QUALCOMM Incorporated (NASDAQ: QCOM) from $180 per share to $190 per share this July, while keeping his Overweight rating on the stock.

In the third quarter of 2021, QUALCOMM Incorporated (NASDAQ: QCOM) reported an EPS of $1.92, beating estimates by $0.24. The company’s third-quarter GAAP revenue came in at $8.00 billion, up 63% year-over-year and beating revenue estimates by $431.67 million. Shares of QUALCOMM Incorporated (NASDAQ: QCOM) gained 13.63% in the last three months and 34.03% in the last twelve months.

By the end of the first quarter of 2021, 73 hedge funds out of the 866 tracked by Insider Monkey held stakes in QUALCOMM Incorporated (NASDAQ: QCOM) worth roughly $2.76 billion. This is compared to 85 hedge funds in the previous quarter with a total stake value of approximately $2.72 billion.

ClearBridge Investments mentioned QUALCOMM Incorporated (NASDAQ: QCOM) in its Q1 2021 investor letter:

“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns, and one-off production delays as well as demand resilience in areas like autos and smartphones. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurt wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”

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