As the coming 5G revolution grows nearer every day, we've compiled a list of the top 5G companies on the market for investors to watch out for.
"5G" is the fifth generation of new wireless technology. And its speeds are as much as 100 times faster than current 4G networks. That kind of speed boost means we'll be able to connect multiple devices over vast distances with little effort.
In fact, this technology is a complete game changer for a variety of sectors. With companies developing 5G, we'll see a breakout in self-driving cars, AI medical diagnosis, wearable IoT devices, and virtual reality.
5G stocks have massive potential and will be the most innovative technology companies to hit the market since the creation of the Internet. 5G companies like Verizon Communications Inc. (NYSE: VZ) have already begun to completely redefine mobile networks in select cities like Houston and Chicago. But in the last year alone, 5G networks have sprouted up in at least 30 U.S. cities.
And these examples are only a percentage of what 5G will impact.
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MarketWatch says the 5G services market is already worth $21.53 billion. By 2023, it'll be valued around $85.84 billion. By 2025, ResearchandMarkets says that number will soar to $252 billion. That's a 1,070% increase from today's market value over the next six years.
So, retail investors who know what 5G technology companies to invest in stand to find themselves among the ranks of the new generation of millionaires.
Fortunately, Money Morning has already put in the legwork to find the top 5G chipmakers and 5G infrastructure companies for you to invest in.
We've got six of the best 5G stocks, including one that could bring you over 130% gains in just a year...
Top 5G Companies, No. 5: Marvell Technology
Our first company is Marvell Technology Group Ltd. (NASDAQ: MRVL).
MRVL is a 5G chipmaker for mobile devices. However, with its most recent $6 billion buyout of microchip creator Cavium, MRVL now has its hands in a variety of 5G markets like AI, hardware, cloud, and the automotive industry.
But beyond that, MRVL has a long-term deal with Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) for the development of 5G base stations.
Shares currently trade at $23.07, but the stock is forecast to go as high as $30. That's a potential 30.04% increase over the next 12 months.
Top 5G Companies, No. 4: Silicon Laboratories
SLAB works in a variety of 5G sectors including communications, industrial control products, and the automotive industry - producing computer chips for different machines like cell phones, automotive computers, and more.
Beyond that, four out the world's top five 5G infrastructure companies are already using the company's 5G chips.
Right now, shares trade for $99.96. But the company is expected to see a potential 30.05% increase to $130.
Top 5G Companies, No. 3: Qualcomm
Our next 5G chipmaker is Qualcomm Inc. (NASDAQ: QCOM).
However, the company mostly makes money from its patents on 5G technology. Since 5G's high-speed connections rely on chips and the company is already supplying one of the only three U.S. companies to be valued at $1 trillion, this makes QCOM a real force in the 5G market.
QCOM shares currently trade at $83.38. But they're forecast to potentially spike up to $115. That's a possible 38% increase over the next year.
Top 5G Companies, No. 2: Xilinx
This company is the supplier of the parts on chips that tell circuits what they should do. That may sound small, but it's hugely important for all of our electronic devices.
For example, it's like the difference between your phone's power button and volume button. When you hit the power button, these devices tell the phone to turn on or off. When you hit your volume button, the same component signals whether it should go up or down.
More importantly, XLNX's chips are customizable, allowing users to tailor their functions to fit their individual needs. This means they'll be used in anything from virtual reality to speech recognition technology. And they'll get a big boost from 5G.
Shares currently trade for $108.88. But they're anticipated to jump to $160. That's a 47% increase within the year.
About the Author
Daniel Smoot is a Baltimore-based editor who helps everyday investors with stock recommendations and analysis. He regularly writes about initial public offerings, technology, and more. He earned a Bachelor's degree from Towson University.