5G stands for the fifth generation of mobile networks, and it has quickly come into the spotlight of the technology industry. Because of this, investors have flocked to the top 5G stocks in the last year. Can you blame them? 5G stocks were some of the best performers in the stock market this past year. It looks like that momentum has carried over into the start of 2021. Top 5G stocks like NVIDIA (NASDAQ: NVDA), and Marvell Technology Group (NASDAQ: MRVL) have delivered triple-digit gains for investors this past year. Their share prices have increased by 128.35% and 103.40%, respectively.
For those not familiar with 5G technology, let’s take a step back. 5G technology started gaining mainstream popularity in 2018, and many believe that this technology will revolutionize how we connect wirelessly. What’s impressive about 5G technology is that there’s a wide range of sectors that can benefit from it. For example, semi-conductor, telecommunications, video game stocks, just to name a few.
A report published by Grand View Research estimates that the global 5G services market reached $41.5 billion in 2020 and is expected to grow at a compound annual growth rate of 43.9% by 2027. With such optimism surrounding the industry outlook and effectiveness of the 5G technology, should you consider adding these top 5G stocks to watch to your portfolio this week?
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If you’ve been a reader with us at StockMarket.com, you’ve likely heard us mention Qualcomm. This top 5G stock has been one of the most talked-about growth stories on Wall Street all throughout 2020. This has resulted in a 166.65% increase in its share price from March lows this past year. Furthermore, year-to-date QCOM stock is up another 9.37%, closing Friday’s trading session at $162.42 a share. The California-based tech company creates semiconductors, software, and services directly related to wireless technology. Could QCOM stock become the next big thing as investors look to profit from the integration and rapid adoption of 5G networking services? I’ll let you decide. Now, let’s look at some recent announcements from the company.
On January 13th the company announced it will be acquiring NUVIA to help strengthen the leadership of its Qualcomm Technologies’ Snapdragon to be able to meet the demands for the next-generation 5G computing. “5G, the convergence of computing and mobile architectures, and the expansion of mobile technologies into other industries are significant opportunities for Qualcomm,” mentioned Cristiano Amon, President, and CEO-Elect, Qualcomm Incorporated. “The NUVIA team are proven innovators, and like Qualcomm, have a strong heritage in creating leading technology and products. I am very excited to have them join our team. Together, we are very well positioned to redefine computing and enable our ecosystem of partners to drive innovation and deliver a new class of products and experiences for the 5G era.“
Qualcomm also recently announced it has scheduled its Q1 2021 earnings report and conference call for Wednesday, February 3rd, 2021 after the closing bell. Given QCOM stock’s strong start to the year combined with the increased investor interest in 5G stocks, does this make QCOM stock one of the best stocks to watch this week? You tell me.Nokia
Next on the list is telecom company Nokia Corporation. Nokia is a telecommunications and electronics company that is headquartered in Finland. The company’s focus has been developing brand new 5G technology for a variety of companies. You may remember Nokia as the “old-school” cell phone that you can play the game snake on. You probably didn’t know that at one point, Nokia was the largest mobile phone and smartphone provider. The company started to shift gears to telecom infrastructure after it was acquired by Microsoft back in 2014. However, in 2016, Microsoft sold Nokia’s smartphone business. Now, Nokia helps support large telecommunication companies like T-Mobile (NASDAQ: TMUS) build out their 5G network. In fact, Nokia recently announced this month, that they signed a 5-year extension with T-Mobile to expand T-Mobile’s extended range 5G coverage.
The President and CEO of Nokia, Peter Lundmark stated, “Nokia has a long-standing and collaborative partnership with T-Mobile and our industry-leading 5G RAN solutions will underpin the new T-Mobile network. The expanded and upgraded 5G network that leverages all spectrum bands will deliver exciting new solutions to even more people and businesses, and our technology will play a fundamental role in delivering these compelling connectivity experiences for work and play.”
Since the market crash in March 2020, NOK stock has recovered 72.83%. Year-to-date NOK Stock has seen a 7.97% increase in the share price. The stock is currently trading between a range of $3.90 – $4.20 per share. With all that being said, will NOK stock be able to keep up its momentum throughout this week? Add it to your watchlist to find out.Verizon
Last on the list of the best stocks to watch this week in the 5G space is telecom juggernaut Verizon. Unless you’ve been living under a rock there’s a good chance you’ve heard of Verizon. Whether it was through a TV commercial or scrolling through your Facebook timeline and seeing an advertisement. Verizon currently holds the title of the largest wireless communications service provider in the U.S. The company represents 35% of the market share with a market cap close to $230 billion. VZ stock closed its last trading session at $57.47.
Next, the company is set to release its next earnings report, Tuesday, January 26th, 2021 before the opening bell. Verizon has a history of beating earnings estimates and is potentially in a solid position to sustain this trend in its next quarterly report. For those who didn’t follow the company’s last reporting, let’s dive into some numbers on VZ stock.
The telecom company showed earnings of $1.25 per share while some analysts were estimating $1.22 per share. If you combine Verizon’s industry-leading position in 5G coverage with their strong track record of beating earnings, it could make for an interesting week for VZ stock this week, don’t you think?