If you're wondering where to invest in 2020, there are few better places than 5G stocks.
5G is the biggest tech trend set to take shape over the next 12 months. And 5G speeds are igniting entire new sectors like driverless autos and robot surgery.
5G also promises faster entertainment, to boot.
These flashy tech trends were only talked about in 2019. But in 2020, they're a reality.
But the biggest winners won't be the flash firms shooting rockets or designing some new form of artificial intelligence, they'll be the engine behind it all.
That makes today's stock picks the surest path to profit in the 5G industry and the best 5G stocks in 2020.
In fact, one of our best 5G stocks right now could soar 139% over the next 12 months.
Here's our first.
The Best 5G Stocks to Invest in for 2020, No. 3: Taiwan Semiconductor Manufacturing
Semiconductors are at the heart of the 5G revolution. And Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) is at the heart of the semiconductor business.
These are the chips that power 5G devices. This company happens to supply chips to none other than Apple Inc. (NASDAQ: AAPL).
In fact, this year's iPhones - Apple's first 5G phones - will be powered by the world's most advanced 5-nanometer chip technology by Taiwan Semiconductor. The only other company using this technology from Taiwan Semiconductor is Huawei, China's leading mobile provider.
So Taiwan semiconductor serves two of the leading mobile companies in the world as it unleashes its next-generation 5G products.
Taiwan semiconductor has profited over $300 billion in the last three years. And total revenue has been on a steady incline, rising by an average of 3.7% over the last three years.
That's going to give the stock a solid 26% bump from today's $57.48 to $74 when the time comes.
The Best 5G Stocks to Invest in for 2020, No. 2: Iron Mountain
5G will enable new methods of collecting data from voice assistants and wearables. Insurance companies will even be looking to more accurately assess risk with this data.
That's just one example. But customer data will take on a whole new level of importance in 2020.
There will be a lot of it, and there will need to be a place to put it.
That's where Iron Mountain Inc. (NYSE: IRM) comes in. This is a data storage company that currently serves over 90% of Forbes 1000 businesses, with data centers all around the world.
For the reasons mentioned above, its services aren't going out of demand anytime soon. In fact, its demand will surge beyond measure.
This year, analysts expect the stock to climb 28%, from $32 to $41. That's not an incredible gain, but it's solid. And if it's not enough, IRM pays a dividend over 7%, more than three times the average S&P 500 yield.
But it's still not our best 5G stock for 2020. Here's a potential 139% gainer...
The Best 5G Stocks to Invest in for 2020, No. 1
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The car of the future is an electric self-driving car. So, before long, every electric car will need to be a connected car - that is, connected to the 5G network.
This will be necessary to perform basic functions like monitoring battery levels or navigation. And in any case, these cars will require batteries.
That's where Albemarle Corp. (NYSE: ALB) comes in.
It's a leading lithium miner based in Charlotte, N.C. But it has customers all around the world - 100 different countries.
It's going to benefit from a huge boost in the demand for lithium batteries as car makers scale up their electric vehicle production.
And this could happen sooner rather than later. Albemarle is trading at nearly a quarter of its five-year average price/earnings (P/E) ratio.
That means, as long as earnings per share remain steady, the price would need to jump 139% to meet the five-year average P/E.
That means an eventual climb from its current $81.90 per share to $196 per share - a gain of 139%.
But this could happen sooner rather than later. The Guardian reports that electric car sales could be as high as 540,000 this year, up from 319,000 in 2019, with nearly double the model options available to customers.
And that's just in the EU. EV sales are expected to cross 4 million this year and tick up to 21 million by 2030.
That's a lot of batteries.
5G Was Following in the Footsteps of 4G Until the FCC Stepped In
By now, you’ve heard the 5G story a million times over. You’ve seen the billboards, you’ve seen the commercials, and you’ve seen the hype campaigns.
But there’s a key reason why there hasn’t been a nationwide rollout yet.
It was following in the footsteps of the 10 years it took 4G to roll out... but the FCC just stepped in with a $10 billion initiative to supercharge 5G.
About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.