In this article, we discuss 13 best 5G stocks to buy now. If you want to see more stocks in this selection, check out 5 Best 5G Stocks To Buy Now.
5G players are experiencing remarkable success all over the world amid strong growth catalysts. In January 2023, Nokia Oyj (NYSE:NOK) exceeded its expected operating profit for the latest quarter and predicted increased sales in 2023. The Finnish telecommunications giant stated that it was able to increase its market share by taking advantage of the 5G deployment in nations like India. In addition, Nokia Oyj (NYSE:NOK) was able to broaden its range of customers beyond network service providers to industrial clients who established their own private 5G networks at locations such as power plants, utilities, and mines, among other places. However, Ericsson announced lower than anticipated core earnings for the fourth quarter and predicted a continued decline in margins in its Networks division during the first half of 2023. The company attributed this to weak sales of 5G equipment in markets such as the United States.
Moreover, AWS, the provider of computing and data storage services owned by Amazon.com, Inc. (NASDAQ:AMZN), has partnered with phone companies such as T-Mobile US, Inc. (NASDAQ:TMUS) and Deutsche Telekom AG to offer exclusive wireless services to businesses. The company aims to promote advanced wireless networks as an alternative to Wi-Fi in office and work environments, and has teamed up with other partners including KDDI Corp. in Japan, Orange SA in France, and Telefonica SA in Spain. The private network sector is one of AWS’s main areas of focus for expanding its cloud services and boosting revenue, as the business is responsible for most of Amazon.com, Inc. (NASDAQ:AMZN)’s profits, although sales growth slowed down last year. According to Jan Hofmeyr, an executive at AWS, the faster 5G wireless networks can now provide companies with improved in-house connectivity. Although Wi-Fi is adequate for current uses, it has certain limitations that can be overcome with 5G’s precise location, low latency, and increased bandwidth, which are particularly useful for advanced applications such as autonomous robots in manufacturing.
In our last year’s article on 5G stocks, we cited Allied Market Research, which claimed that the global market for 5G technology was valued at $5.3 billion in 2020, and it is expected to grow at a compound annual growth rate of 65.8% from 2021 to 2030, reaching a total value of $797.7 billion by 2030. Similarly, Precedence Research stated that the global market for 5G IoT will be worth around $297.1 billion by 2030, with a CAGR of 70.04% between 2022 and 2030. The market growth is primarily being driven by several factors, including the increasing need for fast internet, the continuous improvements in 5G technology, the surge of remote work, and the expansion of 5G network coverage.
Companies specializing in cloud computing, edge computing, telecommunications, and semiconductors are leading players in the 5G sector. Some of the best 5G stocks to invest in include Advanced Micro Devices, Inc. (NASDAQ:AMD), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT).
Our Methodology
For this article, we selected the top 5G stocks based on overall hedge fund sentiment. Most of these stocks are pure 5G companies, but some of them include cloud service providers, holding companies whose subsidiaries are involved in the 5G sector, and semiconductor firms supporting the growing 5G ecosystems. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the fourth quarter of 2022. The list is arranged in ascending order of the number of hedge fund holders in each firm.
Photo by Mario Caruso on Unsplash
Best 5G Stocks To Buy Now
13. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Number of Hedge Fund Holders: 43
Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, manufactures, and markets proprietary semiconductor products. The company provides its products for the usage in aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. KeyBanc Capital Markets predicts that Skyworks Solutions (NASDAQ:SWKS) will experience a robust recovery in the second half of the year due to the global economy’s unstable yet expanding state and the upcoming release of new smartphone models.
On March 16, Susquehanna analyst Christopher Rolland upgraded Skyworks Solutions, Inc. (NASDAQ:SWKS) to Positive from Neutral with a price target of $135, up from $110. In April 2021, Susquehanna predicted that the semiconductor cycle had peaked, but the firm now believes that the bottom has been reached for consumer, PC, and handset-related names. As 2023 is expected to be a weaker year for Apple’s sell-through, Susquehanna sees Skyworks Solutions, Inc. (NASDAQ:SWKS) shifting its focus to capture more premium Android customers. Additionally, the firm believes that Skyworks Solutions, Inc. (NASDAQ:SWKS), with its expertise in RF integration, has numerous opportunities to add value to its products.
According to Insider Monkey’s Q4 data, 43 hedge funds were bullish on Skyworks Solutions, Inc. (NASDAQ:SWKS), compared to 39 funds in the prior quarter. D E Shaw held the largest stake in the company, consisting of 1.14 million shares worth $104.2 million.
Like Advanced Micro Devices, Inc. (NASDAQ:AMD), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), Skyworks Solutions, Inc. (NASDAQ:SWKS) is one of the best 5G stocks to invest in.
Here is what Heartland Advisors specifically said about Skyworks Solutions, Inc. (NASDAQ:SWKS) in its Q3 2022 investor letter:
“Before the risk-on rebound early in the quarter, we were searching for opportunities to shift from our defensive stance, looking for beaten-down, high-quality “early cycle” leaders. Existing holding, Skyworks Solutions, Inc. (NASDAQ:SWKS), represents one such opportunity that was added to on weakness.
Skyworks is one of two leading providers of radio frequency system components to smartphone makers and electronics manufacturers. With every step-up in product complexity, over the past two decades, the competitive landscape has shrunk while gross margins have increased significantly. 5G represents another such step-up, which is likely to increase how much Skyworks can make per smartphone.
Apple is a big customer, accounting for more than half of Skyworks’ sales. That customer concentration has depressed Skyworks’ valuation over time. More recently, fears surrounding a global recession and risk to consumer demand have further pressured valuation. However, the handset business is expected to benefit from 5G content, which may help offset some macroeconomic pressures. Away from the handset business, Skyworks’ growth is expected to accelerate thanks to other secular drivers such as WIFI 6 and growth of the industrial internet (i.e., “Internet of Things”).
At a P/E of less than eight and a 2.3% dividend yield, SWKS rarely gets this cheap, making this high-quality stock compelling for longterm investors.”
12. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 55
AT&T Inc. (NYSE:T) provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. It is one of the best 5G stocks to invest in. During the fourth quarter of 2022, AT&T Inc. (NYSE:T) successfully reached its target of reducing costs by $5 billion to $6 billion. This was achieved in part by eliminating 30,000 positions within its communications business, with 7,000 of those job cuts taking place specifically in the fourth quarter.
On January 26, Gregory Williams, an analyst at Cowen, increased the firm’s price target on AT&T Inc. (NYSE:T) to $25 from $24 and maintained a Market Perform rating on the shares. The analyst pointed out that the company had strong Q4 results and provided good 2023 guidance for EBITDA, slightly below expectations free cash flow, EPS that was lower than expected, and capex that was in line with predictions.
According to Insider Monkey’s fourth quarter database, 55 hedge funds were bullish on AT&T Inc. (NYSE:T), compared to 61 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest position holder in the company, with 18 million shares worth $333.5 million.
Here is what Chartwell Investment Partners has to say about AT&T Inc. (NYSE:T) in its Q2 2022 investor letter:
“In the Dividend Equity accounts, the three best performers in Q2 include AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin off of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”
11. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 56
Verizon Communications Inc. (NYSE:VZ) specializes in communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It is one of the top 5G stocks to watch. On March 2, Verizon Communications Inc. (NYSE:VZ) declared a $0.6525 per share quarterly dividend, in line with previous. The dividend is payable on May 1, to shareholders of record on April 10.
On January 25, Cowen analyst Gregory Williams maintained an Outperform rating on Verizon Communications Inc. (NYSE:VZ) but lowered the firm’s price target on the shares to $49 from $55. The analyst observed that the company’s Q4 results were mixed, and its initial 2023 guidance was unimpressive, as price increases, strong Fixed Wireless Access (FWA) and Business Wireless segments were unable to offset the cost pressures from promotion amortization and interest expenses.
According to Insider Monkey’s fourth quarter database, 56 hedge funds were long Verizon Communications Inc. (NYSE:VZ), compared to 62 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is a significant position holder in the company, with 6.7 million shares worth $267 million.
Here is what Mawer Investment Management has to say about Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter:
“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) have been impacted as wireless operators are spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”
10. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 58
Marvell Technology, Inc. (NASDAQ:MRVL) provides data infrastructure semiconductor solutions spanning the data center core to network edge. Marvell Technology, Inc. (NASDAQ:MRVL) offers a wide range of solutions for Radio Access Network (RAN) and data center applications, including Digital Front End (DFE), baseband, compute, security, switching, and optical connectivity. Marvell’s silicon portfolio is designed specifically for cloud-native 5G and has been successfully implemented at scale. It is one of the best 5G stocks to invest in.
On March 15, Marvell Technology, Inc. (NASDAQ:MRVL) declared a $0.06 per share quarterly dividend, in line with previous. The dividend is payable on April 26, to shareholders of record on April 7.
Harsh Kumar, an analyst at Piper Sandler, maintained an Overweight rating on Marvell Technology, Inc. (NASDAQ:MRVL) but lowered the firm’s price target on the shares to $50 from $55 on March 3. According to the analyst, the company’s softer guidance was due to continued weakness in the storage business, which has impacted both the data center segment and the delay in custom cloud wins. However, the analyst believes that the worst has passed for the stock.
According to Insider Monkey’s fourth quarter database, 58 hedge funds were bullish on Marvell Technology, Inc. (NASDAQ:MRVL), and Ken Griffin’s Citadel Investment Group held a significant position in the company, with 4.2 million shares worth $158.2 million.
Carillon Tower Advisors made the following comment about Marvell Technology, Inc. (NASDAQ:MRVL) in its Q4 2022 investor letter:
“Marvell Technology, Inc. (NASDAQ:MRVL) provides infrastructure semiconductor solutions. Investors are concerned about the semiconductor cycle and how demand for Marvell’s products will fare in a slowing economic environment. We remain confident that the company’s portfolio of products is highly important in parts of the datacenter server market and note that the company recently has secured strong wins with large technology companies to use its products. The company also benefits from 5G wireless infrastructure build-outs that remain on pace and are generally insulated from macroeconomic pressures. With supply chain issues easing, we believe Marvell remains in a strong position to post healthy growth in 2023.”
9. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 62
Intel Corporation (NASDAQ:INTC) designs, develops, markets, and sells computing and related products worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Accelerated Computing Systems and Graphics, Intel Foundry Services, and Other segments. Intel Corporation (NASDAQ:INTC) is one of the top 5G stocks to monitor.
On March 20, Raymond James analyst Srini Pajjuri raised the firm’s price target on Intel Corporation (NASDAQ:INTC) to $33 from $30 and kept an Outperform rating on the shares. The analyst believes that the PC segment has a low expectation in the short term, but Intel’s Commercial segment, in which it holds a strong position, is showing signs of recovery, which is encouraging for the company.
According to Insider Monkey’s fourth quarter database, 62 hedge funds were bullish on Intel Corporation (NASDAQ:INTC), compared to 69 funds in the prior quarter. D E Shaw is the biggest stakeholder of the company, with 13.3 million shares worth $353.7 million.
ClearBridge Large Cap Growth Strategy made the following comment about Intel Corporation (NASDAQ:INTC) in its Q4 2022 investor letter:
“A third approach to return generation is purchasing idiosyncratic businesses that largely control their own destiny. Intel Corporation (NASDAQ:INTC), which we purchased in the first quarter on the premise that it would develop a leading domestic foundry business, has struggled with execution missteps and product delays. We are maintaining the position to provide ongoing exposure to semiconductors.”
8. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 72
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies semiconductor devices worldwide. Chipmakers such as Broadcom Inc. (NASDAQ:AVGO) supply products to the market for 5G network equipment. It is one of the best 5G stocks to monitor. On March 2, the company declared a $4.60 per share quarterly dividend, in line with previous. The dividend is payable on March 31, to shareholders of record on March 22.
On March 3, Truist raised the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) to $700 from $659 and reiterated a Buy rating on the shares. The firm noted that Broadcom Inc. (NASDAQ:AVGO) had a strong performance in Q4 and expects Q1 growth to slow down. However, management anticipates that there will be no negative year-over-year growth in 2023, with support from enterprise customer IT upgrades, generative AI projects, and eventually a recovery in China.
According to Insider Monkey’s fourth quarter database, 72 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), compared to 74 funds in the earlier quarter. William Von Mueffling’s Cantillon Capital Management is a prominent stakeholder of the company, with 1 million shares worth $559.6 million.
ClearBridge Multi Cap Growth Strategy made the following comment about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2022 investor letter:
“Performance was also supported by communications chipmaker Broadcom Inc. (NASDAQ:AVGO), which has managed inventory better than peers and continues to generate healthy levels of free cash. Broadcom should benefit from a more balanced revenue mix between semiconductors and software upon the expected closing of its acquisition of VMware (VMW) in 2023.”
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 82
QUALCOMM Incorporated (NASDAQ:QCOM) was incorporated in 1985 and is headquartered in San Diego, California. The company specializes in the development and commercialization of foundational technologies for the wireless industry worldwide. On March 8, QUALCOMM Incorporated (NASDAQ:QCOM) declared a $0.80 per share quarterly dividend, a 6.7% increase from its prior dividend of $0.75. This raise is effective for quarterly dividends distributable after March 23, 2023.
On March 16, Susquehanna upgraded QUALCOMM Incorporated (NASDAQ:QCOM) to Positive from Neutral with a price target of $140, up from $130, noting that the current cycle for semiconductors has reached its bottom, at least for consumer, PC, and handset-related companies.
According to Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on QUALCOMM Incorporated (NASDAQ:QCOM), compared to 80 funds in the prior quarter. Matrix Capital Management is a significant position holder in the company, with 3.3 million shares worth $367 million.
Madison Funds made the following comment about QUALCOMM Incorporated (NASDAQ:QCOM) in its fourth-quarter 2022 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM) continues to be challenged by headwinds in the smartphone supply chain with an expected decline in units for 2022. Despite solid gains in the Internet of Things and Auto segments, Qualcomm’s dominant business remains the smartphone market. We expect to see stabilization of the smartphone market in 2023, including a recovery in China.”
6. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 94
T-Mobile US, Inc. (NASDAQ:TMUS) provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. It is one of the most prominent 5G providers in the US. On March 16, Morgan Stanley analyst Simon Flannery commented on T-Mobile US, Inc. (NASDAQ:TMUS)’s announcement of the acquisition of Ka’ena Corporation, which includes Mint Mobile, Ultra Mobile, and Plum, for a maximum of $1.35 billion in cash and stock. The analyst stated that the acquisition is logical, but he does not expect it to have a significant impact. T-Mobile is already Ka’ena’s exclusive MVNO partner, so Morgan Stanley expects only a modest financial effect from the deal. Morgan Stanley maintained an Overweight rating on T-Mobile US, Inc. (NASDAQ:TMUS) shares with a price target of $175.
According to Insider Monkey’s Q4 data, 94 hedge funds were bullish on T-Mobile US, Inc. (NASDAQ:TMUS), compared to 100 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company.
In addition to Advanced Micro Devices, Inc. (NASDAQ:AMD), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), T-Mobile US, Inc. (NASDAQ:TMUS) is one of the top 5G stocks to watch.
In its Q4 2021 investor letter, ClearBridge Investments shared its stance on T-Mobile US, Inc. (NASDAQ:TMUS):
“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile. Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”
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Disclosure: None. 13 Best 5G Stocks To Buy Now is originally published on Insider Monkey.