Rapid 5G mobile network construction will continue in 2025. According to mobile infrastructure provider Ericsson (ERIC +0.90%), 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.
This massive technology rollout will take years to complete. It will encompass wide swaths of the global economy since 5G network development will have substantial overlap with items ranging from automotive technology and industrial Internet of Things (IoT) to video games and virtual reality (part of the metaverse). Consumers and businesses will need to upgrade smartphones and other devices that can connect to 5G networks, making the upgrade cycle a top investment theme for 2025 and beyond.
The top 5G stocks to buy in 2025
5G is the fifth generation of wireless networking technology. It offers lower latency (the time between an input or request for data and the network’s response). 5G also boasts download speeds as much as 100 times faster than 4G. Mobile providers such as T-Mobile (TMUS -0.37%) and rivals Verizon (VZ -1.23%) and AT&T (T -0.42%) are all great options for investing in 5G. However, investors wanting higher-growth exposure to 5G should focus on companies providing infrastructure, equipment, and technology.
Semiconductor companies, manufacturers of mobile tech equipment and infrastructure, and real estate asset holders are some of the best-positioned stocks to benefit from the proliferation of 5G.
Best 5G chip companies
The basic building blocks for 5G are semiconductors -- the electronics that process data and execute commands in a computing system. These companies provide the chips that make 5G work. Top chip companies include:
1. Broadcom
NASDAQ: AVGO
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2. Qualcomm
NASDAQ: QCOM
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3. Marvell Technology Group
NASDAQ: MRVL
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4. Advanced Micro Devices
5. Nvidia
Best 5G equipment and infrastructure stocks
Beyond the basic chips needed to power 5G telecommunications, general equipment makers provide hardware that makes mobile networks possible. To reach businesses and consumers, wireless 5G signals need extensive equipment. These companies have had supply chain issues in recent years that have pressured growth rates and profit margins. However, they remain solid investments since they enable the construction of wireless networks and supporting infrastructure around the world.
1. Corning
2. Ciena
Best 5G real estate investments
5G also requires real estate. Towers and other fixed assets are needed to broadcast 5G signals, and real estate investment trusts (REITs), such as American Tower, Crown Castle, and Digital Realty Trust, are some of the largest players in the sector. Besides slower but steady growth, the REITs are also top income-generating investments in the 5G space.
1. American Tower
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Invest in 5G for the long term
While previous telecom network upgrades enabled the smartphone and mobility booms, 5G technology entrenches digital technology even more into daily life. It overlaps with cloud computing, given that so many people now work from home. 5G is also unlocking new forms of entertainment, such as ultra-high-definition video, video game streaming, and virtual reality. Investors who are patient throughout the lengthy course of 5G’s deployment (a decade or more) could enjoy attractive long-term returns.
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