5 Best 5G Stocks To Buy Now

In this article, we discuss 5 best 5G stocks to buy now. If you want to see more stocks in this selection, check out 13 Best 5G Stocks To Buy Now. 

5. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 97

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based semiconductor company that operates through four segments – Data Center, Client, Gaming, and Embedded. It is one of the premier 5G stocks to monitor. The company’s Q4 revenue of $5.6 billion rose by 16% compared to the same period last year. This growth was mainly due to an increase in revenue in the Embedded and Data Center divisions, although it was partly offset by a decrease in revenue in the Client and Gaming segments.

On March 20, Raymond James analyst Srini Pajjuri raised the firm’s price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $115 from $100 and kept a Strong Buy rating on the shares. The reason for this increase is the positive signs of a PC market recovery and the ongoing strength of Advanced Micro Devices, Inc. (NASDAQ:AMD)’s FPGA. The firm also believes that the current expectations of -7%/+2% quarter-over-quarter growth in Q1/Q2 for AMD’s Data Center segment are reasonable, and expects the company’s PC revenue to hit its lowest point in Q1.

According to Insider Monkey’s fourth quarter database, 97 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 89 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a significant position holder in the company, with 6.5 million shares worth $424.7 million. 

Baron Opportunity Fund made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2022 investor letter:

“During the quarter, we added to our position in Advanced Micro Devices, Inc. (NASDAQ:AMD), a global fabless semiconductor company focusing on high performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers. While the company is seeing weakness in its PC business in the short term, we continue to believe AMD will be one of the lead beneficiaries of growing data center infrastructure spending driven by expanded use cases for AI and cloud computing across its product portfolio. AMD’s largest share gain opportunity is in its data-center-server CPUs, which continue to take share from incumbent Intel given a superior total cost of ownership proposition driven by better performance per watt of energy consumption across many computing workloads. We also believe Xilinx, a recent acquisition, offers AMD diversification opportunities through which it can benefit from the broader proliferation of semiconductors into all aspects of the industrial and consumer economies.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 106

NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. The company provides graphics, compute, semiconductor, and networking solutions in the United States, Taiwan, China, and internationally. On February 22, NVIDIA Corporation (NASDAQ:NVDA) reported a Q4 non-GAAP EPS of $0.88 and a revenue of $6.05 billion, topping Wall Street estimates by $0.08 and $30 million, respectively. 

On March 21, BofA analyst Vivek Arya raised the firm’s price target on NVIDIA Corporation (NASDAQ:NVDA) to $310 from $275 and reiterated a Buy rating on the shares. The analyst considers NVIDIA Corporation (NASDAQ:NVDA) to be the top pick for compute, and highlighted the latest announcements of products and partnerships at the GTC conference. The analyst believes that these developments demonstrate NVIDIA Corporation (NASDAQ:NVDA)’s unique AI pipeline and also increase its total addressable market.

According to Insider Monkey’s fourth quarter database, NVIDIA Corporation (NASDAQ:NVDA) was part of 106 hedge fund portfolios, compared to 89 in the prior quarter. Matrix Capital Management is a prominent stakeholder of the company, with 5 million shares worth $741.3 million. 

ClearBridge Large Cap Growth Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2022 investor letter:

“Promoting diversification and managing risk continue to guide our transaction activity, with a focus on the earnings trajectory of existing and potential holdings leading to our most recent moves. We are directing our research efforts to identifying names that are closer to the bottom than the top in terms of earnings and valuations, adding to our positions in ASML, the leading supplier of high-end production equipment to chip makers, and NVIDIA Corporation (NASDAQ:NVDA), whose valuation has washed out due to weakness in gaming and crypto mining as well as slowing enterprise spending.”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 152

As a technology holding company, Alphabet Inc. (NASDAQ:GOOG) does not directly offer 5G capabilities. However, several of its subsidiaries, such as Google and X, are involved in research and development related to 5G technology. Google has partnered with various mobile carriers to offer 5G services on its Google Fi network, while X is working on developing new wireless technologies that could potentially surpass the capabilities of 5G. It is one of the best 5G stocks to invest in. 

On March 20, Mark Kelley, an analyst at Stifel, initiated coverage of Alphabet Inc. (NASDAQ:GOOG) by assigning it a Buy rating and a $130 price target. The analyst observed that early demos of Microsoft’s Bing via OpenAI have been impressive, whereas Google’s demos have not been as successful. However, the analyst believes that this will not cause a significant shift in consumer behavior or affect search ad spending. Stifel estimates that the increasing focus on AI-based searches by Google may impact margins to some extent. The firm anticipates that Google will take proactive measures to address regulatory concerns before a resolution to the DOJ case is reached. Stifel also views YouTube and YouTube TV as significant opportunities for Google.

According to Insider Monkey’s fourth quarter database, 152 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 156 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the biggest stakeholder of the company, with 54.5 million shares worth $4.8 billion. 

Weitz Partners III Opportunity Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:

“Unfortunately, the performance story of the year is told by the Fund’s detractors. Now, weakening ad spending across all channels has added insult to injury, and concerns have spread to the other dominant digital ad player, Alphabet Inc. (NASDAQ:GOOG) — parent of Google and YouTube.

Meta, Alphabet, Amazon and CarMax were all top detractors for the quarter and calendar year periods (FIS and Liberty Broadband, respectively, complete the quarterly and calendar-year detractor lists.) To varying degrees, each is managing through cyclical challenges during a period of substantial investor pessimism. Drawdowns of this magnitude are painful, and it may be prudent for management to moderate the pace of some investments, but we remain encouraged by their long-term focus. In the short run, cutting spending indiscriminately to “defend earnings” may lessen the pain of a drawdown, but it seldom grows a company’s business value — the ultimate prize.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 240

Amazon.com, Inc. (NASDAQ:AMZN) has been investing in 5G technology, particularly for its cloud computing business. In December 2020, the company launched AWS Wavelength, a service that allows developers to build applications that can take advantage of 5G networks. This service is designed to provide low-latency connectivity between AWS compute and storage services and 5G devices. Amazon.com, Inc. (NASDAQ:AMZN) is one of the best 5G plays to consider. 

On March 21, Citi analyst Ronald Josey reiterated a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) with a $145 price target. The company has announced its intention to cut 9,000 more positions, making it a total of 27,000 positions eliminated since November. This represents 8% of Amazon.com, Inc. (NASDAQ:AMZN)’s corporate headcount. The restructuring at Amazon Web Services indicates a possible decline in demand. However, it also helps to stabilize margins, which supports the idea of Amazon becoming more profitable, especially in the North American Retail sector, the analyst wrote in a research note. 

According to Insider Monkey’s fourth quarter database, 240 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 269 funds in the prior quarter. Harris Associates is a prominent stakeholder of the company, with 19.3 million shares worth $1.6 billion. 

Artisan Global Opportunities Fund made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer. The company has gone through a period of massive investment as it doubled its fulfillment network and hired over 800,000 people to meet growing demand over the past few years. Capital expenditure (capex) in the 2017 to 2019 period was $10 billion – $17 billion per year before ramping up to $40 billion in 2020, $61 billion in 2021 and is expected to end 2022 at another $61 billion. We believe the company is in the later innings of this capex cycle and will be transitioning toward a period of harvesting those investments through higher margins and free cash flow generation. At a valuation that appears to be discounting a deteriorating environment for consumer spending, we decided to start a GardenSM position.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

In terms of 5G, Microsoft Corporation (NASDAQ:MSFT) has been focusing on developing cloud-based services and solutions that leverage the capabilities of 5G networks to deliver faster and more reliable connectivity for their customers. It is one of the best 5G stocks to invest in. On March 15, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.68 per share, in line with previous. The dividend is payable on June 8, to shareholders of record on May 18. 

On March 20, Evercore ISI raised the firm’s price target on Microsoft Corporation (NASDAQ:MSFT) to $295 from $280 and kept an Outperform rating on the shares. The firm stated that Microsoft Corporation (NASDAQ:MSFT) introduced Microsoft 365 Copilot last week, which incorporates powerful artificial intelligence technology into the company’s core productivity suite. The rollout of this technology highlights why Evercore ISI believes that Microsoft Corporation (NASDAQ:MSFT) will continue to be a leader in AI adoption, particularly in the commercial market. Evercore argued that Microsoft’s ability to embed AI throughout its dominant application franchise and use first-party data to improve productivity for users is a unique advantage.

According to Insider Monkey’s Q4 data, 259 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 269 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 39.2 million shares worth $9.4 billion. 

Ariel Global Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:

“Enterprise software provider Microsoft Corporation (NASDAQ:MSFT) also traded lower, as higher interest rates and economic concerns have created headwinds for growth-oriented technology companies. We believe this price action runs counter to Microsoft’s solid fundamentals, competitive positioning and long-term business outlook. We continue to anchor on the company driving value creation by capitalizing on a broad and deep set of opportunities, most notably within hybrid cloud infrastructure. The platform continues to demonstrate share gains and strong multi-year purchase intent as enterprises transition to cloud based platforms. At current trading levels, we believe Microsoft’s risk/reward is skewed to the upside.”

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