Fifth-generation (5G) wireless internet technology continues to be rolled out across the U.S. and around the world. The fastest and most powerful internet technology remains a huge market and opportunity for investors. The 5G wireless market is projected to grow from $30.13 billion in 2023 to $224.47 billion by 2032.
For investors, this presents a sizable opportunity to invest in the stocks of leading 5G companies that are widely expected to benefit as the technology becomes more widely adopted and eventually ubiquitous in all our lives. Certain companies are already out front and leading the pack, making for enticing investments right now.
Here are three 5G stocks that could grow your wealth.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) makes the microchips and processors that power and enable many of the fifth-generation wireless networks across the U.S. And now is a great time to take a position in Broadcom after the stock split on a 10-for-1 basis. Investors can now buy Broadcom stock for $170 a share, down from $1,700 before the split. The stock split comes with the company’s share price trending upwards after a strong earnings print.
Year-to-date, Broadcom stock has risen 56%. The share price has nearly doubled in the last 12 months. Driving the stock higher has been strong financial results from the company, both from its wireless internet business and artificial intelligence (AI). Management said that $3.1 billion in Q1 sales could be attributed to revenue from its AI products. Broadcom is also getting a boost from VMware, the enterprise software company it acquired for $69 billion last year.
T-Mobile (TMUS)
Telecommunications giant T-Mobile (NASDAQ:TMUS) is one of the big three wireless and 5G internet providers in the U.S. The company’s position in the market is about to get bigger as it is acquiring a majority of rival U.S. Cellular (NYSE:USM) in a deal valued at $4.40 billion. The acquisition includes U.S. Cellular’s mobile phone customers, the network of retail stores and some of its wireless spectrum.
The purchase is being made through a combination of cash and up to $2 billion of debt. T-Mobile has said it will use U.S. Cellular’s wireless spectrum to improve its internet coverage in rural areas of the country. The deal could also lead to improved connectivity for U.S. Cellular customers as T-Mobile will allow U.S. Cellular customers to keep their current wireless plans or switch to a new plan offered by T-Mobile.
TMUS stock is the best performer among the three largest telecom companies in the U.S. Over the last five years, T-Mobile stock has risen 125%. In comparison, rival Verizon’s (NYSE:VZ) stock has declined 28% and AT&T’s (NYSE:T) stock has fallen 26% in the same period.
Deutsche Telekom (DTEGY)
Deutsche Telekom (OTCMKTS:DTEGY) is Europe’s largest telecommunications provider. As such, it holds a commanding position in the European marketplace. Over the last 12 months, the stock has risen 18%, including a year-to-date gain of 8%. The stock also pays a strong quarterly dividend that yields 3.15%. In addition to being a strong global player in 5G and a leading European stock, Deutsche Telekom is also a cryptocurrency play.
That is because Deutsche Telekom has announced it is starting a Bitcoin (BTC-USD) mining operation. The company already runs a Bitcoin node. The move into crypto mining could also impact the aforementioned T-Mobile, which Deutsche Telekom has a large stake in. Deutsche Telekom executives have said their move into the crypto space won’t be confined to Bitcoin. The company is also increasing its involvement in several blockchain initiatives, including the Ethereum (ETH-USD) network.
Exactly how big Deutsche Telekom’s Bitcoin mining operation will be and how much cryptocurrency it ultimately hopes to mine has not been disclosed, with management promising more details in coming months.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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