In this article, we will take a look at the 5 best 5G stocks to buy now. To see more such companies, go directly to 14 Best 5G Stocks To Buy Now.
5. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 89
Wireless and telecom network operator T-Mobile US Inc (NASDAQ:TMUS) is one of the best 5G stocks to buy now. TMUS is one of the direct beneficiaries of the rise of the 5G networks. In late July T-Mobile US, Inc. (NASDAQ:TMUS) posted second-quarter results. GAAP EPS in the quarter came in at $1.86 beating estimates by $0.15. Revenue in the quarter fell 2.5% year over year to $19.2 billion, missing estimates by $160 million.
A total of 89 hedge funds out of the 943 funds in Insider Monkey’s database reported owning stakes in T-Mobile US, Inc. (NASDAQ:TMUS). The biggest stakeholder of T-Mobile US, Inc. (NASDAQ:TMUS) was Warren Buffett’s Berkshire Hathaway which owns a $759 million stake in the company.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 91
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s chips and processors will power the 5G ecosystem in the world. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s EPYC processors are important in this regard. Earlier this year Advanced Micro Devices, Inc. (NASDAQ:AMD) and its division Xilinx introduced new adaptive radio computing chips for 5G companies.
As of the end of the first quarter of 2023, 91 hedge funds out of the 943 funds tracked by Insider Monkey reported owning stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD). The biggest stakeholder of Advanced Micro Devices, Inc. (NASDAQ:AMD) during this period was Philippe Laffont’s Coatue Management with an $834 million stake in the company.
L1 Capital International Fund made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2023 investor letter:
“During the June 2023 quarter the AI bubble continued to inflate. Advanced Micro Devices, Inc. (NASDAQ:AMD), as a key challenger to Nvidia, will benefit from increased demand for its next generation semiconductor chips. AMD’s share price is reflecting very bullish sentiment and the share price has run ahead of a reasonable base case valuation. Accordingly, we divested our entire position and moved AMD to our Bench.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
In the smartphone space Apple Inc. (NASDAQ:AAPL) will be the direct beneficiary of the 5G revolution. Millions of iPhone users are expected to upgrade to new iPhones that support 5G. Amid rising use of 5G applications and content, Apple Inc. (NASDAQ:AAPL)’s services and software revenue will also grow.
As of the end of the first quarter of 2023, 131 hedge funds in Insider Monkey’s database of 943 funds reported owning stakes in Apple Inc. (NASDAQ:AAPL). The biggest stakeholder of Apple Inc. (NASDAQ:AAPL) at the end of March 2023 was Warren Buffett’s Berkshire Hathaway which owns a $151 billion stake in the company.
Choice Equities Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Dramatic valuation differences across market cap sizes continue. This has been the case for some time now. Perhaps I have spent too much time discussing these dichotomies, as generally, I feel like if we pick the right stocks and manage market exposures thoughtfully, our equities- oriented portfolio will prosper across various market cycles. However, when markets become as lopsided as they have lately, I feel additional discussion on the market environment is worthwhile, if only to help highlight the opportunities that are available and the likely path forward. I expect future discussions to soon be focused again on our moderately concentrated portfolio. But for now, let’s take one last in-depth look at how far reaching these valuation dichotomies have again become.(Please note: charts that accompany the following can be found in the Appendix.)
Take Apple Inc. (NASDAQ:AAPL) for example. It is the largest stock by market cap, and fairly considered one of the best companies in the world. The company has been extraordinarily successful and improved standards of living everywhere in the process with their ubiquitous products. Along the way, shareholders have been richly rewarded, with shares increasing nearly fourteen-fold over the last ten years while generating an annualized total shareholder return of 31%, including dividends.
On the back of another big quarter for large cap tech, it is now the first stock to surpass the $3T market cap threshold. This makes its weighting in the ~$37T market cap of the S&P 500, ~8%. It also means this one stock’s market cap is larger than that of the entire ~$2.98T market cap of the Russell 2000 index, the first time in history a single stock has outweighed the Russell 2000 – aside from two brief days in September 2020 when Apple’s market cap then accomplished the same…” (Click here to read the full text)
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA) offers several software and hardware solutions related to 5G. NVIDIA Corporation (NASDAQ:NVDA)’s AI-on-5G platform is one of the most notable platforms in the space. It includes NVIDIA Corporation (NASDAQ:NVDA)’s NVIDIA-Certified Systems™, NVIDIA converged accelerators, the NVIDIA Aerial™ SDK for software-defined 5G virtual radio area networks (vRANs), and a portfolio of enterprise AI applications and SDKs. NVIDIA Corporation (NASDAQ:NVDA)’s chips and software are also used by other companies to develop their 5G infrastructure. For example, in May, NVIDIA Corporation (NASDAQ:NVDA) joined hands with Softbank to develop a 5G/6G platform using NVIDIA GH200 Grace Hopper™ Superchip. The platform will use NVIDIA MGX™ reference architecture with Arm Neoverse-based GH200 Superchips.
Polen Focus Growth Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2023 investor letter:
NVIDIA Corporation (NASDAQ:NVDA) was the largest relative headwind to the Portfolio as we do not own this “AI darling.” NVIDIA shares rose more than 50% in the second quarter alone, following a 90% increase in the share price in the first quarter of 2023. NVIDIA supplies GPUs (graphics processing units), the preferred (often necessary) semiconductors for machine learning and AI. On their recent earnings call, NVIDIA management announced that they expect a significant increase in demand for the GPUs for datacenter customers beginning this quarter and lasting at least through the end of this year. NVIDIA’s datacenter business, which was almost non-existent from a revenue perspective eight years ago, is now the company’s largest and fastest-growing business.
We find NVIDIA’s competitive advantages to be quite large around its technology, but even more importantly around its full-stack solutions, including highly integrated hardware, software, and networking equipment and a robust developer ecosystem. It would be difficult to disrupt these competitive advantages in our view. That said, with a greater than $1 trillion valuation on the back of what feels like peak-level AI exuberance since OpenAI’s breakthrough with ChatGPT, we believe virtually all the upside opportunities we can currently see for the company are already priced in…” (Click here to read the full text)
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ:AMZN) makes it to the list because of its AWS Cloud platform. Amazon.com, Inc. (NASDAQ:AMZN) offers various services and toolkits that allow companies to make and deploy 5G services and software. For example, AWS Private 5G is a managed service that helps companies make and deploy their private mobile network, with all required hardware and software provided by AWS.
Amazon.com, Inc. (NASDAQ:AMZN) tops the list because 243 hedge funds in Insider Monkey’s database of 943 hedge funds reported owning stakes in the company. The biggest stakeholder of Amazon.com, Inc. (NASDAQ:AMZN) was Harris Associates of Natixis Global Asset Management which owns a $2.4 billion stake in the company.
Weitz Partners III Opportunity Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its second quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) was another top performer for the quarter and year-to-date, also with an AI role to play. AI systems require massive computational resources, meaning that as these technologies become more pervasive for businesses of all sizes, customers will increasingly lean on cloud computing platforms like Amazon Web Services to harness the benefits.”
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