The Race to Win the 5G Revolution Heats Up

5G is spreading like wildfire. Remember, this technology is a big deal, as it brings cable, modem and internet speeds to the air. In other words, you will not need cable modem to download and stream movies in four to five years. That’s an incredible development, and it’s going to be huge for many technology companies. As a result, the drive to 5G will be an epic battle, with China’s Huawei Technologies pitted against American companies.

When I wrote to you in early May about 5G, Verizon (VZ), AT&T (T), T-Mobile (TMUS) and Sprint (S) were still battling for first place in the 5G race. For now, Verizon is still ahead. Back in April, it launched its 5G network in downtown Chicago and Minneapolis, and it’s stayed there. The coverage in Chicago has expanded a bit. And now, Verizon is looking to bring its 5G coverage to New York, potentially by the end of 2019.

But what’s even more exciting is that 5G is no longer limited to the U.S. It’s finally spread across the pond to the U.K., thanks to EE Limited, a British mobile network operator. Currently, 5G is available in Belfast, Birmingham, Cardiff, Edinburgh, London and Manchester. EE’s rival, Vodafone (VOD), is planning to turn on its 5G service in the next few weeks.

In the meantime, the U.S. and China continue to battle out their own 5G war. A few weeks ago, President Trump took another step in an attempt to further protect American intellectual property. Within the U.S.-China trade war, China’s 5G company, Huawei Technologies, has been a major point of contention. The Trump administration claims that Huawei’s technology enables the Chinese government to spy on the U.S.

President Trump later inked an executive order to ban American telecommunications networks from utilizing equipment from foreign suppliers, like Huawei Technologies. The Chinese company was also added to the Commerce Department’s “Entity List,” which blocks Huawei from purchasing equipment from U.S. companies without government approval.

But last week, the U.S. eased a few of its trade restrictions on Huawei. Specifically, the Commerce Department issued a temporary license for American companies to continue partnering with Huawei for the next 90 days. The key word here is “temporary.”

Essentially, this 90-day window allows Huawei to stock up on U.S. semiconductor orders, which will temporarily boost orders at many U.S. companies. Google (GOOGL), Intel (INTC) and Qualcomm (QCOM) all initially complied with the emergency ban on Huawei, but Google has now reversed its ban for the 90 days. The reason was to help limit the disruption to customers and subscribers who rely on Google’s Android system and updates on Huawei’s 5G phones. But if the 5G fight continues past the next 90 days, Huawei will be forced to develop its own system.

As a result, the drive to 5G will be an epic battle, with China’s Huawei Technologies pitted against American companies. The winner will essentially run the internet for the next few years, which means that the investors who invest in the right company will be big winners, too.

I know what you’re thinking: My 5G recommendation will be one of the big wireless companies we talked about earlier, or maybe a tech company working on self-driving cars or a big Internet of Things device. Not so.

I believe the real money will be made not with the company that needs 5G to create exciting products, but the one involved in the creation of 5G. In the long term, this will be the company that will profit off of almost every aspect of 5G.

The global 5G infrastructure market is expected to grow from $2.55 billion in 2020 to over $42 billion by 2025 – a 75.1% CARG increase in just one market.

And remember, because 5G plays a big role in industries like the Internet of Things and self-driving cars, this company will have an even bigger sandbox to play in.

I believe I’ve found that winner, which has done well for my Growth Investor subscribers. In less than six months, it’s already up in the double digits. I see even bigger upside ahead once 5G really takes off, which could come in the nearer term now that it’s in the U.K., too. So, now is the time to get in. You can get all the details by signing up for my Growth Investor service here. I have a members-only special report called The #1 Investment for the Coming 5G Revolution, which will give you all the details on 5G and the best way for investors to play it. Click here for the details.

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