Two 5G Stocks Ready to Grow

April 22, 2019
1350 Views

5G is a broad term that covers the fifth generation of cellular technologies. 4G (LTE) brought us increased speeds and connectivity. 5G will do the same, with much higher gains.

5G has the potential for connection speeds up to 20 Gigabits per second (20,000 Megabits) at low latency. This would allow the transfer of large amounts of data in seconds rather than minutes or hours.

The technology will improve mobile internet and enable emerging technologies like self-driving cars. The applications are virtually unlimited. It’s likely that it will change the world as we know it today. Of course, it will also create excellent investment opportunities. The following two stocks are compelling picks for anyone who wants to get in on the revolution early.

Keysight Technologies Inc. (NYSE: KEYS)

Keysight develops and manufactures equipment that is used to test wireless networks. This equipment is used by telecommunications companies, internet service providers, and OEM device manufacturers.

5G deployment is already underway in the United States. Because of this, Keysight Technologies saw its Q1 2019 revenues increase by 20% year over year. Analysts expect the market for test equipment to grow by 50% between now and 2023.

Keysight’s revenues are expected to grow along with demand for 5G test equipment. The company is a leader in its market and already a supplier to key telecommunications companies.

Stock has grown 44% year to date, and analysts believe there’s still significant headroom on top of today’s price.

Micron Technology (NASDAQ: MU)

Even investors new to 5G might be familiar with Micron Technology. The company manufacturers semiconductors and computers, memory (RAM), flash memory, USB drives, and solid-state storage devices.

Because 5G allows far more bandwidth than existing solutions, it is expected that data centers will require significant upgrades, with servers needing more RAM and storage than they are currently provisioned with. Analysts expect sales of solid-state storage devices to double by 2023, fueled partly by the evolution of 5G technology. Micron is in a strong position to capitalize on its growth, which could reinvigorate the chip market overall.

Stock has grown 36.78% year to date. The average consensus is that Micron stock is currently overperforming, with 18 of the top 29 analysts awarding a BUY rating.

5G an Exciting Technology for Stock Market Investors

5G is quite literally the future of wireless communications. Both of these stocks are compelling in their own ways, and they’re both primed to take advantage of the gold rush that is likely to develop in the coming years.

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