One of the most fast-moving and profitable areas of tech to invest in right now is 5G.

"5G" stands for the 5th generation mobile network, designed to work even faster and more reliably than 4G.

The scaling and adoption of 5G wireless technology will provide the world with faster connectivity and greater capacity in broadband. The upgrade is vital as we use more connected devices every day.

With its ability to vastly improve network security, Internet of Things (IoT) technology, machine learning, and artificial intelligence, 5G technology is poised to transform the lives of people across the globe.

This makes 5G technology an incredible investing opportunity. To successfully find the best 5G stocks to buy, it's important to have a complete understanding of what exactly 5G technology is.

Read our collection of articles and resources on this page to learn about 5G technology, how to find 5G stocks and the latest news on this exciting investment opportunity.

What to Know About 5G Technology

Mobile devices and internet connectivity are an integral part of modern life, and every decade sees significant improvement in broadband capability. The latest wireless standard, 5G, began its rollout in early 2019—although which company was first to introduce the technology is a matter of debate (more on this later).

The biggest improvement from 4G to 5G is in latency rate, which affects the time it takes for connected devices to communicate with one another. The latency rate of 5G is as low as one millisecond, which is important for hospitals, first responders, and even self-driving cars.

By the end of 2020, the adoption rate of 5G technology was a mere 4%. However, adoption is predicted to improve to 46% by 2025—offering an exciting investment opportunity for those who know the best 5G stocks to buy now.

How to Find 5G Stocks to Buy

There is plenty of profit to be made in 5G as it becomes a bigger part of the world’s technological architecture. A good way to start choosing 5G stocks to buy is to consider the specific sub-industries of 5G.

Semiconductor Manufacturers

5G won't work properly without improved bandwidth. That's why semiconductor companies are racing to develop the latest technology that can support 5G.

We expect a lot of these companies to explore mergers and acquisitions to be more competitive in the 5G space. The ones that will be among the best tech stocks to buy now are those with strong partnerships within the tech world and healthy earnings growth.

Semiconductors such as Qualcomm Inc. (NASDAQ: QCOM), Intel Corporation (NASDAQ: INTC), and Nokia Corporation (NYSE: NOK) are long-running companies looking to gain a strong foothold in the 5G space.

Telecommunications

5G was unveiled by telecommunications giants in 2019. In April of that year, officials in South Korea declared their country the first to roll out 5G networks by connecting a mobile phone to its network.

However, American companies Verizon Communications (NYSE: VZ), AT&T (NYSE: T), and T-Mobile US, Inc. (NASDAQ: TMUS) have all claimed to be the winner of the race and were launching limited networks concurrently. Regardless, 5G is no winner-take-all situation and several telecommunications companies stand to profit as they increase 5G availability.

Telecommunications giants such as Verizon, T-Mobile, and AT&T all continue to show promise in the 5G field. Telecommunications ETFs such as Vanguard Communications ETF (NYSEARCA: VOX) and First Trust Indxx NextG ETF (NASDAQ: NXTG) give investors wider exposure to companies that could make a move in 5G.

Real Estate

It may not seem that real estate would be among the 5G stocks to buy, but land is important in the 5G revolution. Infrastructure, including locations for cellular towers, needs to be handled by real estate companies.

Publicly traded companies such as American Tower Corporation (NYSE: AMT) that own communications sites and lease space for antennas stand to profit off the growing need for new 5G towers.

5G ETFs

A lower risk, easy way to gain exposure to multiple players in the 5G field is to buy ETFs. ETFs own stock in several companies and share profits with investors.

The most notable 5G ETFs include some of the big-name companies (like those mentioned above) as well as startups and smaller cap companies that could end up making a big splash in the sector. 5G ETFs such as Global X Internet of Things ETF (NASDAQ: SNSR), SPDR S&P Telecom ETF (NYSEARCA: XTL), and Defiance Next Gen Connectivity ETF (NYSE: FIVG) all own pieces of companies that could make an impact on 5G.

Should You Buy 5G Stocks?

To decide if a stock is right for you, always look at your investment goals – how long you want to hold stocks, how much money you have to start with, and how much you're aiming to get in return. Never invest more than you can afford to lose.

If you are looking to add stocks to your portfolio, looking for 5G stocks to buy can be a great way to profit from solid companies leading an in-demand industry.

We regularly evaluate stock opportunities at Money Morning, so follow along for all our new 5G stock recommendations, along with other stocks to buy, from our team of experts.