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Allied Market Research predicts the 5G technology sector will explode from $5.53 billion today to $667.90 billion in 2026. An 11,977% projection.
Today, we're going to show you a 5G stock with a hand in every part of that growth.
That 122% compound annual growth rate (CAGR) for the industry might sound too good to be true at first. The average S&P 500 CAGR is a mere 7.20%. I'll be the first to admit that it sounds crazy.
But when you think about it, almost every technological advancement on the horizon either depends on 5G, or it's preparing for it. 5G is a landmark in human history.
We're talking autonomous vehicles and remote surgery. Virtual assistants that are convincingly human. Artificial Intelligence-powered fridges and mirrors. A completely streamlined life.
Those are only some of the innovations resulting from the 100x faster speeds of 5G. And they're going to create hundreds of new, lucrative industries.
Our 5G stock today is not behind any new cell towers or mobile hardware powering the 5G network. Instead, we're looking at some of the soft infrastructure everyone is going to need in place before 5G arrives.
In order for companies to provide those futuristic products and services, their operations need to be ready for those speeds. And this 5G stock is critical in getting businesses prepared.
In fact, it's doing this for some of the biggest tech companies in the world...
What's Moving 5G Stocks in 2020
Cloud computing is one of the most important movements heading into a 5G-connected world.
One reason is that cloud-based innovations are simply more efficient than on-site networks.
Think Google Docs from Alphabet Inc. (NASDAQ: GOOGL). It can be accessed from anywhere. Your changes in a document save in less than a second. If you want to access those changes from another machine, all you need to do is hop on your Google account.
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Now, compare that to before Microsoft Corp. (NASDAQ: MSFT) developed a cloud-based Word app. The entire platform was housed on a single machine. If you wanted to access it from another machine, you'd need to transport it via an external drive. We've all forgotten our USB thumb drives at some point in our lives. Plain inconvenient.
The cloud is easier and faster. So businesses everywhere are transitioning. Oracle Corp. (NYSE: ORCL) expects 80% of businesses to be running on the cloud by 2025.
A large part of that transition is preparing these cloud-based companies to operate with a 5G network. But it's not a simple switch. For some businesses, making mission-critical information accessible from anywhere might seem dangerous.
Think about how you'd feel if someone asked you to store your social security card and birth certificate on a Google doc. All a hacker would need is your name and password to steal them. But companies like the one we're talking about today build environments to prevent that from happening. They set up things like private VPNs and two-factor authentication and make them work in sync for the enterprise.
In short, today's 5G stock is a cloud computing company that specializes in helping companies establish a workflow on the cloud. And as of this year, they're "doubling down" on 5G.
This company is serving some of the biggest names in the world. In fact, it's basically holding Microsoft's hand en route to "cloudification"...
Why Microsoft Relies on This 5G Stock
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.