Investing in 5G Stocks

5G stocks provide exposure to companies that develop, manufacture, or provide the infrastructure, equipment, software, and services necessary for fifth-generation (5G) wireless technology networks. Rapid 5G mobile network construction will continue in 2026.

According to mobile infrastructure provider Ericsson (ERIC -1.55%), global 5G subscriptions are expected to total about 2.9 billion at the end of 2025 and climb to a projected 6.3 billion (about 67% of all mobile subscriptions) in 2030.

1. Broadcom

Chip design giant Broadcom (AVGO +0.41%) is a top name in 5G. Its circuitry designs can be found across the mobile network ecosystem. Included in this list of equipment are 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.

In recent years, Broadcom has made several acquisitions to add infrastructure management software to its operations. The segment assists customers with monitoring and securing their networks and cloud computing assets.

This has boosted the company's profit margins, as the software is often packaged with network hardware. Broadcom's free-cash-flow generation is incredible. Through the first three quarters of fiscal 2025, Broadcom reported $19.4 billion in free cash flow, a 40% increase over the same period in fiscal 2024.

A serial acquirer, Broadcom acquired cloud and networking hardware giant VMware in 2023 for $69 billion -- one of the largest acquisitions so far this decade. This resulted in the creation of a powerhouse in networking component design, ranging from cloud computing to 5G to infrastructure management software.

5G networks enable faster download speeds and can handle higher traffic and intelligently route network signals where they're most needed. So, high-end GPUs are ideal for this task. Nvidia's GPUs are being used by telecom companies and equipment makers, and 5G deployment is likely to increase the need for GPUs to operate cloud-based video games streamed over networks.

In late 2024, for example, Nvidia and Verizon announced that they had collaborated to develop a solution that makes it possible for various AI applications to run over Verizon's 5G private network with private Mobile Edge Compute. Already a huge enterprise, Nvidia is finding a potentially gigantic new market in 5G.

Even as they deploy new radio towers, many telecoms providing 5G service also need to add more high-speed cable to their networks. Corning also builds small cell antennas and accompanying software -- core components of 5G systems used in office buildings and venues such as sports arenas to deploy wireless signals. Corning has been around for a long time, but it has a long history of paying a rising dividend to its shareholders.

Arista is a top equipment provider for data centers and internet infrastructure, with open-source hardware and network management and cybersecurity tools. Arista is well positioned to benefit from the accompanying boom in cloud computing services as 5G further increases the capabilities of mobile devices.