Are you due for an upgrade to your cellphone or tablet this year? If so, I’d make it a 5G device. AT&T (T) will have 5G nationwide this summer, alongside T-Mobile (TMUS), and Verizon (VZ) is hot on their heels. So, more to the point, the companies making 5G possible are high on my list of long-term mega-growth plays.
If you’re like me, then COVID-19 really underscored the importance of good, fast internet at home. Plenty of Americans, especially essential workers, still have to venture out to keep the country going. But many of us can conduct daily life at home, around the clock.
So, while the press releases from Big Telecom will emphasize the “cool factor” of 5G, and how it’s up to 100 times faster than 4G, I want you to think about it more practically.
5G is what’s going to keep us all connected in the modern economy. If you live somewhere without reliable (or any!) broadband access, you might have trouble keeping up with shopping or even finances in the “new normal.” That is, until ultrafast 5G wireless changes all that for you.
Now that we’re all upgrading to 5G from coast to coast, around the world, imagine all the technology involved. And, particularly, all the new hardware involved. This is where the best opportunity for investors comes in.
5G is in such high demand by telecom providers that the installation crews can’t keep up!
Back in January, the U.S. government – specifically, the Federal Communications Commission (FCC) – realized that America has a shortage of “tower climbers.” The plan was to go out to community colleges and technical schools across the nation with a 12-week training course, and hopefully get at least 20,000 more telecom installers into the field.
Meanwhile, in South Korea, Samsung has been working on a way to maintain the towers with drones!
This is pretty much what it sounds like. Instead of putting a human up on these towers for hours, checking and adjusting the antennas, Samsung’s drone has a camera that can do the checks for them. The company’s now working on a system that will actually rotate and tilt the antennas, too, in just a few minutes! And Samsung’s even using “deep learning,” the next frontier of artificial intelligence, to do the analysis for humans.
Now, this is just one example. I think it’s a pretty neat one, too, when you think about how much safer and efficient this gets, once drones are maintaining the cell towers. But, again, the big picture is the hardware that all this requires.
Once all the 5G towers are up and running, the potential of 5G can really take off. And it goes way beyond your smartphone. There’s going to be private 5G networks for things like self-driving cars. Toyota (TM) just picked Nokia (NOK) to help build out one of these in Japan. Google (GOOGL) and its peers across the world are perfecting this technology. Before you know it, whole “smart cities” powered by 5G will emerge worldwide.
Source: India Housing Ministry
For my money, I’m not going to bet on any one application of 5G. Or even one provider of 5G. I want the companies who make all of it possible.
The King of 5G “Turbo Button” Technology
Mobile providers like AT&T and Verizon need 5G to maintain their edge – and get people into new smartphone contracts. But the big profits will come from the companies that help create 5G.
One such company I like now is much lesser known than the Big Telecom companies but has excellent growth prospects.
This company is already one of the biggest semiconductor equipment manufacturers in the world. These days, its products for machine learning, optics, sensors and analytics are getting deployed for all sorts of next-generation technologies: the self-driving cars, robotics, cloud computing and the larger Internet of Things (IoT).
Most importantly for a Growth Investor, this stock is a “Strong Buy” in my Portfolio Grader now.
So, if that company doesn’t sound familiar to you, I’d like to change that. This is the kind of stock that can help you profit from all the 5G infrastructure that’s popping up everywhere.
I have a complete, freshly-updated investment report on it, called The King of 5G “Turbo Button” Technology. You can secure a copy by watching my free briefing on 5G and joining us at Growth Investor today.