5 Stocks to Play the Internet Infrastructure Boom on 5G Rollout

Though 5G technology has been available since 2017, the networks became operational only last year. The technology provides faster wireless Internet access, with greater bandwidth and minimal delay.

As companies started transitioning to5G technology, the U.S.-China trade war acted as a major impediment. But since the coronavirus outbreak has forced people to stay indoors, the demand for faster Internet connections has increased substantially. This is because people are spending more time now on the Internet to work, learn, shop and entertain. In fact, the pandemic helped accelerate digitization, increasing the requirement for connectivity and computing power.

In short, there has been a substantial rise in demand for infrastructure that powers the Internet worldwide. This has created an opportunity for firms dealing in server processors, graphic cards, fiber-optic connections, switches and more.

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5G is considered to be way faster than 4G, with more network capacity and even better spectrum technology. This wireless technology has ample application in both consumer devices and businesses.?? It can benefit businesses across industrial IoT, remote health care, drones and robotics, autonomous driving, smart cities and more.

However, features like autonomous driving, IoT and advanced cloud computing cannot reach their full potential until 5G is available in every corner of the world. The widespread deployment of 5G in the coming years will have huge economic implications. In fact, 5G revolution is expected to equate to $13.2 trillion dollars of global economic output by 2035.

5G networks use mid-band as well as higher frequency airwaves, which require more equipment, cell towers and fiber-optic wiring than the previous generations. Hence, as demand for 5G grows, companies offering 5g technology infrastructure will also see a boom.

In fact, fiber-optic technology providers are major part of the 5G wireless network supply chain. Along with that, small cell radio antennas and radio access network equipment are required to link network to cloud computing infrastructure.

On the recipient side, smart phones and laptops also need to be upgraded to help users avail better and faster service. Smartphone chip maker QUALCOMM Incorporated QCOM had seen sales hitting $26.5 billion in 2014, with the release of 4G phones. The company now expects $175 million to $225 million worth of 5G handsets to be sold across the globe this year even amid the coronavirus crisis.

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Given the current progress in 5G rollout and coronavirus-led digitization, Internet infrastructure providers should enjoy a boom. Here are five stocks that can return well on investment.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="MACOM Technology Solutions Holdings, Inc. MTSI is a developer of radio frequency (RF), microwave, and millimeter wave semiconductor devices and components. The shift to 5G would require rearranging base stations with massive multiple-in, multiple-out (or Massive MIMO) architecture. Each base station requires 5G-enabled RF antennas to provide better wireless performance without maxing out individual antenna power. Massive MIMO requires extra RF antennas that MACOM Technology manufactures, all the same, increasing its demand.” data-reactid=”30″>MACOM Technology Solutions Holdings, Inc. MTSI is a developer of radio frequency (RF), microwave, and millimeter wave semiconductor devices and components. The shift to 5G would require rearranging base stations with massive multiple-in, multiple-out (or Massive MIMO) architecture. Each base station requires 5G-enabled RF antennas to provide better wireless performance without maxing out individual antenna power. Massive MIMO requires extra RF antennas that MACOM Technology manufactures, all the same, increasing its demand.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company???s expected earnings growth rate for the current quarter is more than 100% compared with the Zacks??Semiconductor – Analog and Mixed??industry???s projected earnings growth of 89.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 54.6% over the past 60 days. MACOM Technology sports a Zacks Rank #1 (Strong Buy). You can see??the complete list of today???s Zacks #1 Rank stocks here.” data-reactid=”31″>The company???s expected earnings growth rate for the current quarter is more than 100% compared with the Zacks??Semiconductor – Analog and Mixed??industry???s projected earnings growth of 89.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 54.6% over the past 60 days. MACOM Technology sports a Zacks Rank #1 (Strong Buy). You can see??the complete list of today???s Zacks #1 Rank stocks here.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Acacia Communications, Inc. ACIA develops, manufactures and sells high-speed coherent optical interconnect products. The company???s expected earnings growth rate for the current quarter is nearly 31% against the Zacks??Communication – Components??industry???s projected earnings decline of 6.8%. The Zacks Consensus Estimate for its current-year earnings has risen 18.7% over the past 60 days. Acacia Communications flaunts a Zacks Rank #1.” data-reactid=”32″>Acacia Communications, Inc. ACIA develops, manufactures and sells high-speed coherent optical interconnect products. The company???s expected earnings growth rate for the current quarter is nearly 31% against the Zacks??Communication – Components??industry???s projected earnings decline of 6.8%. The Zacks Consensus Estimate for its current-year earnings has risen 18.7% over the past 60 days. Acacia Communications flaunts a Zacks Rank #1.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Apple Inc. AAPL a leader in mobile device manufacturing is expected to roll out 5G handsets by the end of this year. However, it faces strong competition from Samsung and Huawei and there may be delay in the company???s typical iPhone rollout period in September, due to the coronavirus pandemic.” data-reactid=”33″>Apple Inc. AAPL a leader in mobile device manufacturing is expected to roll out 5G handsets by the end of this year. However, it faces strong competition from Samsung and Huawei and there may be delay in the company???s typical iPhone rollout period in September, due to the coronavirus pandemic.