Best 5G Stocks to Buy Now for Big Growth Potential In 2022
According to recent forecasts, the 5G market is expected to grow at a massive 58% annual growth rate. Furthermore, the best 5G stocks to buy now look to be setting up for an explosive run.
If the past few years have taught us one thing, it’s that wireless communication is critical in this society. As a result, companies are racing to take the lead in the future of wireless with huge investments into 5G. With this in mind, I will cover the best 5G stocks to buy now to capture a piece of the massive growth.
Despite being one of the biggest trends on Wall St, 5G stocks are down this year. For example, industry leaders such as Verizon (NYSE: VZ) and AT&T (NYSE: T) are down 12% in the past year.
At the same time, most market trends tend to stay quiet before they start running. Will 5G be the next money-making opportunity? Regardless, 5G is a trend that’s here to stay and these companies are leading the way.
Best 5G Stocks to Buy Now
With 5G set for rapid growth over the next few years, companies from every angle of the market are fighting for a share of the profits. Below are my top six 5G stocks to buy now based on their growth ability and market share.
That said, let’s see why they earned a spot on the list.
No. 6 Intel (Nasdaq: INTC)
- Market Cap: 200B
- EPS: 5.16
- 1 Yr. Revenue Growth: 5%
- 1 Yr. Return: 4%
Intel is cornering the 5G market through its diverse portfolio of supporting products. The company offers a lineup of hardware, software, and infrastructure solutions.
First, Intel builds chips specifically for powering 5G devices. In fact, as the world’s leading silicon provider, the chipmaker sees a $25 billion opportunity by 2023.
As more consumers transition to 5G devices, Intel is providing the hardware so providers can scale their operations.
No. 5 T-Mobile (Nasdaq: TMUS)
- Market Cap: 136.7B
- EPS: 2.66
- 1 Yr. Revenue Growth: 2%
- 1 Yr. Return: (-17%)
After T-Mobile merged with Sprint, the duo became the third-largest wireless service provider. In T-Mobile’s Q3 earnings, the provider claims to be the most reliable 5G network, covering 308 million people.
But, recently, the Better Business Bureau released a letter suggesting the company no longer promotes this based on independent research. Regardless of the status, T-Mobile is still a leader in the industry and gaining market share with a record 106.9 million total customer count.
If T-Mobile can continue growing its customer base, then look for it to be a tight battle for 5G leadership and one of the best 5G stocks to buy now.
No. 4 AT&T (NYSE: T)
- Market Cap: 162.5B
- EPS: .13
- 1 Yr. Revenue Growth: (-6%)
- 1 Yr. Return: (-15%)
Another popular wireless carrier, AT&T, is striving to become the leader in 5G wireless tech. Information from Statista shows AT&T as the largest wireless carrier in the U.S with over 44% market share.
Not only that, but in the past five years, AT&T has invested more in U.S 5G technology than its competitors. With this in mind, the wireless carrier is positioning itself to lead the future of communication with 5G.
On top of this, AT&T is restructuring, allowing it to focus its core business operations.
Keep reading for more info on the best 5G stocks to buy now.
No. 3 Verizon (NYSE: VZ)
- Market Cap: 212.3B
- EPS: 5.32
- 1 Yr. Revenue Growth: 4%
- 1 Yr. Return: (-12%)
Like the other wireless carriers on this list, Verizon stock is down this year. But, looking ahead, Verizon’s position as a 5G leader is about to give it a boost.
In Verizon’s latest earnings, the wireless carrier continues seeing users adopt 5G technology, with over 25% now having 5G capable devices. Not only that, but the company is expecting the transition to accelerate into the end of the year and 2022.
And lastly, Verizon’s attractive 4.94% dividend yield makes it one of the best 5G stocks to buy now for growth in 2022.
No. 2 Apple (Nasdaq: AAPL)
- Market Cap: 2.7T
- EPS: 5.61
- 1 Yr. Revenue Growth: 29%
- 1 Yr. Return: 39%
The king of Wall St, Apple, is only getting bigger with its iPhone 13. In fact, the smartphone is now expected to push Apple past Samsung for the top smartphone manufacturer globally.
The research shows Apple is gaining market share, with estimates pointing to 23% in Q4. If this is the case, then it would give Apple a dominant position in the smartphone market. But, this is based on production, not sales. So we will see if this is the case in Apple’s next earnings.
Either way, Apple is crushing it right now. IPhone sales are up 46% from last year despite missing top-line estimates, with the 13 series leading the way.
Most importantly, Apple’s dominant brand power is unrivaled. Every time there’s a new iPhone release, you can see it as users flock to buy the latest Apple products. Given these points, Apple is one of the best 5G stocks to buy now as the iPhone maker is just heating up.
Best 5G Stocks to Buy Now – No. 1 Taiwan Semiconductor Manufacturing Co. (NYSE: TSM)
- Market Cap: 609B
- EPS: 3.97
- 1 Yr. Revenue Growth: 16%
- 1 Yr. Return: 20%
To power 5G, the devices need chips. And this is where Taiwan Semi comes in. The chipmaker works behind the scenes as a foundry, providing chips for some of the most prominent companies. Some of TSMCs customers include:
But, the company’s latest move is partnering with Apple to make its first in-house 5G chips. The news can be huge for the company already powering a good share of the technology around us.
As I have noted, Apple’s share of the smartphone market is growing. Not only that, but with the chip shortage, TSMC maintains a strong position in its industry. With double-digit revenue growth in the last seven quarters, TSMC is furthering its role in the semi market.
In the long run, Taiwan Semi is positioning itself to become a critical factor in the future of technology. Its product is not only powering 5G but big potential markets like video games and AI.
For this reason, Taiwan Semi tops the best 5G stocks to buy now.
Best 5G stocks to Buy Now – The Future of Communication
Over the next few years, 5G is expecting to gradually replace the older, outdated 3G and 4G technology. It’s the 5th generation of wireless tech that’s promising faster, more reliable connectivity.
With this in mind, the market is multiplying with new devices relying on new abilities. Being that faster connection can be an advantage in this day in age, companies are racing to be a part of the next big thing.
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These are some of the best 5G stocks to buy now that are leading the way in their respective industries. There are several different ways you can get a piece of the 5G action – wireless carriers, equipment, hardware, etc. – and still, earn a return.
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.