If you are thinking about diversifying your investment options, you should know that the 5G network is supposed to debut this year. 5G will be a game-changer in the tech field which makes it a very reliable opportunity to invest in a significant way and be a part of 5Gs future.
5G has some pretty impressive features. It has a speed of 10Gbps. The speed is a massive development from what we are used to with 4G. The latency period is reduced to just one millisecond. It will have a higher bandwidth, which will allow 100 times more devices to be connected in the same area without suffering from lag. It will also mean 99% less waste of network energy and better battery life for devices.
The reason for such useful features is a shorter frequency in which the network operates. When 5G becomes more widespread, it will change our entire perception of the internet.
Here are some safe and reliable investment ideas regarding 5G.
1. Tech developing companies
Companies that manufacture and develop computer processors, programming chips are an excellent option to invest right now. 5G will require better versions of processors, chips, and artificial intelligence.
To adapt to 5G, a lot of companies will develop their products in a new fashion. Xilinx is an excellent choice for investment in this sector. This company is a frontrunner of its league.
With the advent of 5G, various other tech devices are also going to make an appearance. One such device is the tiny silver smart antenna – it has been buzzed about for quite a while now.
Check out the article on Louis Navellier’s Smart Antenna from StocksReviewed to know more about it.
2. Cell Tower Companies
Companies that sell, lease, or manage cell towers are excellent investment opportunities. A 5G network will require the right amount of infrastructure development.
We will need cell towers with better coverage. The companies that deal with cell towers, materials, and fibers will have an excellent business opportunity. One famous company is CCI (Crown Castle International).
It is a REIT that manages cell towers. Other similar companies that you can look into are American tower, SBA communications.
3. Telecommunications industry
Telecommunications companies are good investment options. These companies deal with selling phones, mobile internet, and televisions.
These companies are responsible for providing infrastructural support to the internet and telecommunications. With the advent of 5G networks, telecommunications companies will possibly have their hands full of business opportunities.
Some of the telecommunication companies are Verizon, AT&T, and Comcast. Amdocs is an award-winning company that provides customer service in the telecommunications industry. The company does not have any debt and has a favorable ROE.
4. Wireless Communications Company
Wireless communication companies are growing in business. 5G will enable these companies to expand their boundaries in product development and service. Qualcomm is a company in this genre.
This company will likely see growth in business in the coming years. They recently signed a chipset agreement with Apple, which will release phones with 5G compatibility.
5. Verizon & T-Mobile Companies
Verizon is a perfect candidate for investment. The company is wireless communications based. Their main area of interest in upcoming days would be 5G developments. The company has good value in terms of free cash flow and shareholder yield. The management is apt at maintaining low debts compared to its competitors. Its shares are currently priced at 61 dollars. The shareholder yield is 6.1% and 14 times free cash flow.
T mobile is already making adaptations with the 5G network. They are ahead of Verizon and AT&T in this regard. They already have a head start so you can check this company out from investment.
6. Opportunities In Fiber Optics Sector
Corning, Ciena, and Acacia Communications are optic fiber developing companies. 5G will require companies to build better optic fibers. So significant investment returns are possible from companies that deal with optical fibers.
7. Hardware Sector Opportunities
Companies that sell network gears can expect a good profit from 5G technologies. Companies like Ericsson and Nokia are good options for investment.
Radio and small cell antenna manufacturers are also good candidates for your investment.
8. Look Beyond Communications
Companies that deal with chipsets, programming, app development, cloud computing, infrastructure development have a good chance of giving higher returns. Apple, Samsung, Huawei will be launching phones very soon with 5G systems. So these companies are good candidates for investment as well.
Companies like Infineon, National Instruments, and Koh Young, who deal with measurement and tests, are good candidates for investment. Enabler companies are just as good as distributive companies like Verizon. So do not miss out on any investment opportunity and check all your options properly.
9. Do Not Go Overboard With One Stock
It is essential to diversify your investment in multiple areas. Instead of just investing in the stock market, you should also look into ETFs and mutual funds. If you can spread your investment over a wide area, you will have better chances of getting good returns. This will help alleviate some risks associated with investments.
Investing in REITs like American Tower, Digital Reality, and Crown Castle International is the right choice. You can further diversify your option by investing in companies that develop hardware like Ericsson and Nokia. All these companies have possibilities of good returns in a 5G future.
10. Consider The Risk Factors
You have to consider the time and reality of your surroundings for investment. With any new technology, there appears a lot of opportunities to invest. There will likely be an upsurge of new companies that will try to benefit from 5G. These companies might seem right for investment.
But you have to realize that such investments are a gamble, and most new companies may fail in becoming a success. So it is better to stick with investing fields that you have experience in.
Investing in new technology has its ups and downs. A lot of factors affect the launch of new tech. For example, we can say that the COVID-19 pandemic has delayed the release of some services regarding 5G. The economic condition of the market also plays a role in reaping profits. Some products do not take off as well as expected. There is also a possibility that the benefits will take a long time to generate. So you should plan for the long run while investing in new technologies.