In this article, we discuss the 10 5G stocks to buy for 2022.
As more smartphones, electric vehicles, laptops, and other tech make their way from the factories to retail shops in 2022, the presence of onboard 5G networks could make the difference with regards to success or failure at the market. Analysts expect 5G companies to grow in 2022 as more spending on information technology, especially in the context of increased uncertainty with regards to the pandemic, increases sales. 5G infrastructure providers, chipmakers, and software firms are all set to benefit from this boom.
5G tech is at least ten times faster than the previous 4G and has lower latencies as well. This expands overall reach and also lets more users connect to nearby cellular towers. The true potential of 5G, according to tech news platform CNET, is the improvements it will make to driverless cars, telemedicine and virtual reality gear. Gartner claims that the global spending on 5G infrastructure will grow over $19 billion in value this year at an annual growth rate of more than 39%. In 2022, these numbers are likely to increase dramatically.
American, Chinese, and European firms are fighting to dominate the 5G market and the tech promises to be a key player in the global power struggle over the next few years. 5G penetration in global smartphones, in developed economies, has reached over one-third already. Hedge funds have been loading up on 5G stocks like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and General Motors Company (NYSE:GM), among others, to position their portfolios for the coming year.
Our Methodology
The aim of the article is to provide a basic rundown of the 5G stocks with upcoming growth catalysts. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also mentioned.
We used our database of over 800 hedge funds to pick the most popular 5G stocks among the smart money.
Photo by Mario Caruso on Unsplash
5G Stocks to Buy for 2022
10. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)
Number of Hedge Fund Holders: 21
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) provides communications infrastructure and related services. Communications giant AT&T recently partnered with the firm to expand a nationwide 5G network through 2022.
Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) recently announced that it would be purchasing cloud communications firm Vonage in a deal worth $6.2 billion. As 5G services roll out across the world and more businesses go digital, the purchase could provide the company with lucrative growth opportunities in the long-term.
At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $227 million in Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC), up from 19 in the preceding quarter worth $228 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) with 4 million shares worth more than $45 million.
Just like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and General Motors Company (NYSE:GM), Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is one of the stocks attracting the attention of growth investors.
9. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 22
Nokia Corporation (NYSE:NOK) markets mobile and fixed network solutions. It recently won a Qatari contract to bring multiple technologies, including 5G, to customers in the Middle East, North Africa and other nearby regions through a deal that extends until 2026.
In early November, investment advisory Barclays maintained an Equal Weight rating on Nokia Corporation (NYSE:NOK) stock and raised the price target to EUR5.25 from EUR5. Analyst Andrew Gardiner issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in Nokia Corporation (NYSE:NOK) with 22 million shares worth more than $123 million.
At the end of the third quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $388 million in Nokia Corporation (NYSE:NOK), compared to 26 in the previous quarter worth $494 million.
8. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 45
Marvell Technology, Inc. (NASDAQ:MRVL) makes and sells semiconductors. Matt Murphy, the CEO of the firm, recently said that 5G spending was increasing revenue for the firm and that it expected this momentum to carry on into the new year.
Marvell Technology, Inc. (NASDAQ:MRVL) was recently awarded as a standout performer by the Global Semiconductor Alliance in the “Most Respected Public Semiconductor Company” and “Analyst Favorite Semiconductor Company” categories.
At the end of the third quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Marvell Technology, Inc. (NASDAQ:MRVL), compared to 51 in the previous quarter worth $1.3 billion.
Among the hedge funds being tracked by Insider Monkey, United Kingdom-based investment firm Polar Capital is a leading shareholder in Marvell Technology, Inc. (NASDAQ:MRVL) with 4.1 million shares worth more than $252 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Marvell Technology, Inc. (NASDAQ:MRVL) was one of them. Here is what the fund said:
“We also purchased Marvell Technology Group, in the IT sector, a semiconductor maker with exposure to the fast growing 5G and data center markets whose shares sold off in the latest rotation out of growth stocks. Marvell just acquired data center supplier Inphi, a name we have held in other ClearBridge portfolios, which should increase the chipmaker’s cross-selling opportunities in a strong demand environment for chips.”
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 50
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software. The stock stands to benefit from the rise in 5G tech adoption through 2022 as companies look for the chips made by Broadcom to power their electronic and digital needs.
Argus analyst Jim Kelleher recently raised the price target on Broadcom Inc. (NASDAQ:AVGO) stock to $715 from $620 and kept a Buy rating, appreciating the earnings beat of the firm in the fourth fiscal quarter.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Cantillon Capital Management is a leading shareholder in Broadcom Inc. (NASDAQ:AVGO) with 1 million shares worth more than $525 million.
At the end of the third quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Broadcom Inc. (NASDAQ:AVGO), up from 47 in the previous quarter worth $3 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Broadcom Inc. (NASDAQ:AVGO) was one of them. Here is what the fund said:
“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 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.”
6. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is an integrated telecommunications services firm. On December 9, the company announced that it had hit the target for deployment of 5G cells and would turn attention to rapidly expanding its C-band airwaves deployment in the coming months.
Verizon Communications Inc. (NYSE: VZ) has an impressive dividend history stretching back more than two decades. It recently declared a quarterly dividend of $0.64 per share, in line with previous. The forward yield was 5.03%.
At the end of the third quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $10.3 billion in Verizon Communications Inc. (NYSE:VZ), compared to 63 in the previous quarter worth $10.9 billion.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in Verizon Communications Inc. (NYSE: VZ) with 158 million shares worth more than $8.5 billion.
In addition to Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and General Motors Company (NYSE:GM), Verizon Communications Inc. (NYSE: VZ) is one of the stocks on the radar of hedge funds.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“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.”
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
NVIDIA Corporation (NASDAQ:NVDA) is a visual computing company. The company is developing an aerial application framework that would help communications providers deploy virtual radio access networks. It is also developing artificial intelligence-enabled 5G chips.
Tigress Financial analyst Ivan Feinseth recently raised the price target on NVIDIA Corporation (NASDAQ:NVDA) stock to $400 from $230 and kept a Buy rating, touting the potential of the firm as an “omniverse” play in the coming months.
At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA), compared to 86 the preceding quarter worth $9 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs 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. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
4. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 86
General Motors Company (NYSE:GM) makes and sells automobiles. The company has plans in place to integrate 5G capable chips into the cars it sells by 2023. The 5G chips will greatly enhance autonomous driving functions on vehicles.
General Motors Company (NYSE:GM) recently released a trailer video featuring the all-electric GMC Sierra Denali. The official event for the car is expected in 2022 and production is likely to begin in 2023 as General Motors joins other auto firms in the pivot to EV.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in General Motors Company (NYSE:GM) with 34 million shares worth more than $2 billion.
Junto Investments, in its Q4 2020 investor letter, mentioned General Motors Company (NYSE:GM). Here is what the fund has to say about General Motors Company in its letter:
“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”
3. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 89
T-Mobile US, Inc. (NASDAQ:TMUS) provides mobile communication services. In May this year, the company revealed that it had partnered with Nokia on a digital transformation plan that included 5G services and related development.
Morgan Stanley analyst Simon Flannery recently reiterated an Overweight rating on T-Mobile US, Inc. (NASDAQ:TMUS) stock and raised the price target to $152 from $148, noting the firm remained a top pick in the communications space based on solid fundamentals.
Among the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global is a leading shareholder in T-Mobile US, Inc. (NASDAQ:TMUS) with 10.2 million shares worth more than $1.3 billion.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. On December 15, the company announced that it would be partnering with Verizon on 5G mobile edge computing for developers and enterprises.
Alphabet Inc. (NASDAQ:GOOG) has ramped up investments in the 5G space, most notably in the cloud market. The company plans to sell high-speed cloud infrastructure services to clients. It has also partnered with 5G provider Ericsson in this regard.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.8 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 250
Microsoft Corporation (NASDAQ:MSFT) provides software, support and related services. In October, it announced that the cloud computing department of the firm would soon start selling global network transport and routing services to 5G network operators.
In late November, Wells Fargo analyst Michael Turrin initiated coverage of Microsoft Corporation (NASDAQ:MSFT) stock with an Overweight rating and a price target of $400, noting growth opportunities for the firm as businesses increased IT-related spending.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 25 million shares worth more than $7 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
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Disclosure. None. 10 5G Stocks to Buy for 2022 is originally published on Insider Monkey.
