In this article, we discuss the 5 best 5G stocks to invest in right now. If you want to read our detailed analysis of these stocks, go directly to the 12 Best 5G Stocks To Invest In Right Now.
5. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 80
Ranking 5th on the list of 12 best 5G stocks to invest in right now is NVIDIA Corporation (NASDAQ: NVDA). The company was founded in 1993 and operates in over 27 countries.
In June 2021, NVIDIA Corporation (NASDAQ: NVDA) announced its partnership with Alphabet Inc.’s (NASDAQ: GOOGL) Google Cloud. The collaboration is set to establish the first AI-on-5G Innovation Lab for industry players and partners to develop solutions that support advanced 5G and AI applications.
This August, Rosenblatt analyst Hans Mosesmann raised his price target on shares of NVIDIA Corporation (NASDAQ: NVDA) to $250 per share from $200 per share and kept his Buy rating on the stock. Mosesmann believes the stock will remain strong even if the ARM Limited acquisition deal fails.
In the first quarter of 2021, NVIDIA Corporation (NASDAQ: NVDA) reported an EPS of $3.66, beating estimates by $2.84. The company’s first-quarter revenue came in at $5.66 billion, up 84% year-over-year and beating estimates by $252.24 million. Shares of NVIDIA Corporation (NASDAQ: NVDA) gained 83% in the last twelve months and 52% year-to-date.
By the end of the first quarter of 2021, 80 hedge funds out of the 866 tracked by Insider Monkey held stakes in NVIDIA Corporation (NASDAQ: NVDA) worth roughly $6.20 billion. This is compared to 88 hedge funds in the previous quarter with a total stake value of approximately $8.69 billion.
Vulcan Value Partners mentioned NVIDIA Corporation (NASDAQ: NVDA) in its Q2 2021 investor letter:
“NVIDIA Corp. was a material contributor during the quarter. NVIDIA’s products are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. The company continues to execute well, and its value continues to compound rapidly.”
4. Intel Corporation (NASDAQ: INTC)
Number of Hedge Fund Holders: 83
Intel Corporation (NASDAQ: INTC) ranks 4th on the list of 12 best 5G stocks to invest in right now. The multinational technology company is based in California and was founded in 1968. Intel Corporation (NASDAQ: INTC) operates in over 46 countries supplying microprocessors to companies like Lenovo Grup Limited, HP Inc. (NYSE: HPQ), and Dell Technologies, Inc (NYSE: DELL).
In May 2021, Intel Corporation (NASDAQ: INTC) launched its first 5G product for personal computers, Intel 5G Solution 5000. The product is expected to improve connectivity across all network types.
Raymond James analysts upgraded Intel Corporation (NASDAQ: INTC) to a Strong Buy rating from an Outperform rating in February and raised the price target to $280 per share from $225 per share.
The company has a market cap of $218.83 billion and currently offers a dividend yield of 2.58%. In the second quarter of 2021, Intel Corporation (NASDAQ: INTC) reported an adjusted EPS of $1.24, beating estimates by $0.19. The company’s second-quarter non-GAAP revenue came in at $18.5 billion, up 2% year-over-year and beating estimates by $735.06 million. Shares of Intel Corporation (NASDAQ: INTC) gained 8.2% year-to-date and 11.9% in the last twelve months.
By the end of the first quarter of 2021, 83 hedge funds out of the 866 tracked by Insider Monkey held stakes in Intel Corporation (NASDAQ: INTC) worth roughly $7.61 billion. This is compared to 72 hedge funds in the previous quarter with a total stake value of approximately $5.57 billion.
Alger mentioned Intel Corporation (NASDAQ: INTC) in its Q1 2021 investor letter:
“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is
deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”
3. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 98
Ranking 3rd on the list of 12 best 5G stocks to invest in right now is Washington-based wireless network operator T-Mobile US, Inc. (NASDAQ: TMUS). The company first launched its nationwide 5G network in 2019. T-5G Mobile’s ‘Ultra Capacity’ download speed averages 257 Mbps.
In June 2021, T-Mobile US, Inc. (NASDAQ: TMUS) introduced its cheapest 5G-ready mobile phone REVVL for less than $200.
This August, Deutsche Bank analyst Bryan Kraft raised the price target of T-Mobile US, Inc. (NASDAQ: TMUS) to $195 per share from $188 per share and kept his Buy rating on the stock, highlighting solid Q2 results.
The company has a market cap of $178.71 billion. In the second quarter of 2021, T-Mobile US, Inc. (NASDAQ: TMUS) reported an EPS of $0.94, beating estimates by $0.44. The company’s second-quarter revenue came in at $19.95 billion, beating estimates of $566.68 million. Shares of T-Mobile US, Inc. (NASDAQ: TMUS) jumped 26.01% in the last twelve months and 6.19% year-to-date.
By the end of the first quarter of 2021, 98 hedge funds out of the 866 tracked by Insider Monkey held stakes in T-Mobile US, Inc. (NASDAQ: TMUS) worth roughly $9.05 billion. This is compared to 103 hedge funds in the previous quarter with a total stake value of approximately $9.11 billion.
ClearBridge Investments mentioned T-Mobile US, Inc. (NASDAQ: TMUS) in its Q1 2021 investor letter:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”
2. Micron Technology, Inc. (NASDAQ: MU)
Number of Hedge Fund Holders: 100
Ranking 2nd on the list of 12 best 5G stocks to invest in right now is Micron Technology, Inc. (NASDAQ: MU). The Idaho-based memory and storage solution developer was founded in 1978. The company also provides devices with 5G power.
In July, Micron Technology, Inc. (NASDAQ: MU) started shipping their 176-layer NAND Universal Flash Storage 3.1 mobile solution which is designed to boost 5G performance up to 75%.
Keybanc analyst John Vinh kept an Overweight rating on Micron Technology, Inc. (NASDAQ: MU) and raised the firm’s price target to $120 per share from $115 per share, noting the company’s strong quarterly results and guidance.
The company has a market cap of $85.46 billion and currently offers a dividend yield of 0.53%. In the third quarter of 2021,
Micron Technology, Inc. (NASDAQ: MU) reported an EPS of $1.88, beating estimates by $0.16. The company’s third-quarter revenue came in at $7.42 billion, up 35% year-over-year and beating estimates by $153.35 million. Shares of Micron Technology, Inc. (NASDAQ: MU) jumped 56.5% year-to-date.
By the end of the first quarter of 2021, 100 hedge funds out of the 866 tracked by Insider Monkey held stakes in Micron Technology, Inc. (NASDAQ: MU) worth roughly $7.62 billion.
Bonsai Partners mentioned Micron Technology, Inc. (NASDAQ: MU) in its Q1 2021 investor letter:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
1. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 127
Topping the list of 12 best 5G stocks to invest in right now is California-based multinational technology company Apple Inc. (NASDAQ: AAPL). Apple Inc. is one of the leaders in the 5G industry with 5G-enabled products such as iPhone 12, iPhone 12 mini, iPhone 12 Pro, and iPhone 12 Pro Max.
In July 2021, Apple Inc. (NASDAQ: AAPL) announced that all its scheduled iPhone releases for 2022 will be 5G-capable including its budget 5G iPhone on the first half of 2022.
On July 29th, Keybanc analyst Weston Twigg raised the price target of Apple Inc. (NASDAQ: AAPL) to $105 per share from $100 per share and kept his Overweight rating on the stock.
In the third quarter of 2021, Apple Inc. (NASDAQ: AAPL) reported an EPS of $1.30, beating estimates by $0.29. The company’s third-quarter revenue came in at $81.40 billion, up 36% year-over-year and beating estimates by $8.09 billion. Shares of Apple Inc. (NASDAQ: AAPL) jumped 18.60% in the last three months and 28.84% year-to-date.
By the end of the first quarter of 2021, 127 hedge funds out of the 866 tracked by Insider Monkey held stakes in Apple Inc. (NASDAQ: AAPL) worth roughly $130.9 billion.
ClearBridge Investments mentioned Apple Inc. (NASDAQ: AAPL) in its Q1 2021 investor letter:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
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