In the mid-19th century California gold rush, more people are thought to have become rich. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions achieve financial freedom through our website, podcasts, books, newspaper columns, radio programs and premium investment services. Semiconductor companies, manufacturers of mobile technology equipment and infrastructure, and holders of real estate assets are some of the stocks best positioned to benefit from the proliferation of 5G. Several 5G exchange-traded funds (ETFs) also focus on companies building the next generation of mobile technology.Chip design giant Broadcom is one of the leading names in 5G.
Their circuit designs can be found throughout the mobile network ecosystem. This list of equipment includes base stations that create wireless signals and network infrastructure that serves as the backbone of the Internet. Broadcom also designs parts that connect smartphones and other devices to a wireless signal.
Qualcomm's
product portfolio includes chips that enable 5G technology. Qualcomm has benefited from the smartphone boom since the early 2000s by focusing on the technology behind 3G and 4G mobile networks.However, 5G is broadening the horizons of the mobile chip designer and is opening up opportunities in IoT devices and industrial equipment, new smartphones, cars and even modems that make up the 5G network.
Marvell Technology Group
has long been a leader in the development of data processing units (DPUs). Its chips are essential for moving large amounts of digital information in network equipment and data centers. As mobile networks are increasingly used in business applications, 5G has been a natural fit for Marvell's silicon portfolio.Nvidia
pioneered the graphics processing unit (GPU) most commonly used in high-end video games. However, GPUs are also used for other applications, such as AI, autonomous car development, and 5G.Beyond the basic chips needed to power 5G telecommunications, general equipment manufacturers provide hardware that makes mobile networks possible.To reach businesses and consumers, 5G wireless signals need extensive equipment. These companies have had supply chain problems in recent years that have put pressure on growth rates and profit margins. However, they are still solid investments, allowing the construction of wireless networks and supporting infrastructure around the world.Before it becomes a high-speed Wi-Fi signal, 5G data must travel over the wired part of the Internet, just like other electronic data. That's where fiber optic cable comes into play and Corning, the traditional manufacturer of glass and ceramics, is a major supplier.
Even as they roll out new radio towers, many telecom companies providing 5G service also need to add more high-speed cable to their networks. Corning also builds small cell antennas and corresponding software, core components of 5G systems used in office buildings and venues, such as sports stadiums, to implement wireless signals.Corning has been around for a long time, but it has a long history of paying increasing dividends to its shareholders.
Ciena
is another company that sells fiber optic equipment and network design services to communications companies. Ciena's profits from the expansion of 5G technology have allowed the company to increase cash reserves and buy back shares.Along the way, it has developed new capabilities, including a software segment that helps telecommunications manage their networks.As organizations upgrade their systems to manage 5G, the company is able to provide the engineering design and materials needed to implement next-generation mobility. After a drop in sales at the beginning of the COVID-19 pandemic, Ciena returns to growth.
Data center
and Internet infrastructure company Arista Networks is an often overlooked 5G stock. As 5G transports large amounts of data, enabling ultra-high-definition video transmission or communications for network-connected vehicles, data centers will play an increasingly important role in managing mobile networks.Arista is one of the leading providers of equipment for data centers and Internet infrastructure, with open source hardware and network management and cybersecurity tools. Arista is well positioned to benefit from the concomitant boom in cloud computing services as 5G further increases mobile device capabilities.With more than 221,000 properties worldwide, American Tower is one of the largest REITs and is one of the leading real estate companies in technology.It mainly deals with land, buildings and mobile tower sites crucial to the operation of mobile networks and Internet infrastructure. It also establishes fiber-optic networks that connect 5G small cell sites to the rest of the Internet, which is a fundamental service for mobile network operators as more people rely on a mobile service for their Internet use.
Crown Castle
is much smaller than American Tower but it is one of North America's top managers of communications infrastructure properties. It operates more than 40,000 cell towers and has tens of thousands of kilometers of fiber including a rapidly growing portfolio of small cell nodes for 5G deployment. Although there are industries that grow faster than real estate Crown Castle offers its shareholders potential for revenue growth as 5G industry develops.Digital Realty Trust
is one of the leading developers and purchasers of data centers; core computing units for cloud computing industry.However given there is an overlap between cloud services %26 5G it should be noted Digital Realty customers include telecommunications companies building physical assets to make 5G possible.As previous upgrades to telecommunications network allowed for rise of smartphones %26 mobility; 5G technology further entrenches digital technology in life with overlaps with cloud computing as many people now work from home.Investors who are patient throughout long course of 5G deployment (decade or more) could enjoy attractive long-term returns. In 1985 seven people gathered in den in San Diego to create “quality communications” today den spans more than 170 offices in more than 40 countries; idea however remains same.
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