Most folks probably think of 5G wireless technology for its blazing fast download speeds for their smartphones. And they’d be absolutely right. 5G will bring lightning-fast connectivity to our phones and connected devices.
In fact, it will clock in at a full 10-times — and some experts say ultimately 100 times! — faster than current download speeds. That’s quick enough to download a two-hour movie in about 10 seconds!
But the reality is that 5G is about a whole lot more than just faster download speeds.
It can also handle greater bandwidth and therefore connect more devices than ever before. Another key factor is that 5G will reduce latency to nearly zero. Latency refers to the time it takes for a smartphone or other connected device to send data from one communication endpoint to another.
This is where the truly revolutionary nature of the 5G wireless upgrade kicks in.
It’s going to allow millions and millions of devices to take in massive amounts of overall data from cars, thermostats, medical instruments and more to connect to the internet near instantaneously.
These connected devices, known as the Internet of Things (IoT), will underpin a new generation of technologies, everything from electric and self-driving vehicles to robotic surgeries and smart cities.
So, it’s no surprise the biggest players in this space have already begun selling advanced 5G services to their commercial clients.
Last week, Amazon (AMZN) and Verizon (VZ) announced that they are teaming up to set up 10 server sites across the country that will offer edge computing services that make use of advanced 5G networks. The goal here is to not only build on their cloud computing services but to try to beat out competitors Microsoft (MSFT) and AT&T (T) in the cloud computing space.
Edge computing is done at the source of where the data get created by these IoT devices, instead of relying on massive data centers. In other words, edge computing brings the cloud closer to the source, where data processing can move faster and more efficiently.
The collaboration is called AWS Wavelength and the two companies have spent months testing 5G’s real-world capabilities. For example:
- Artificial intelligence app developer Avesha uses the service to help doctors instantly spot abnormal colonoscopies while the medical procedure is being carried out.
- Sports data company ShotTracker uses 5G sensors to carry out instant statistical analysis for basketball teams and broadcasters.
- And video game designer Bethesda Softworks — the company behind popular games like Doom, Rage and Fallout — uses AWS Wavelength and 5G to help boost its mobile games business.
The 5G technology involved here is where the best opportunities for investors come in.
However, I’m not interested in any single provider of 5G or a particular application. Instead, I’m looking at the bigger picture and want the company that’s a part of just about every aspect of the 5G process.
Investing in 5G’s “Turbo Button” Technology
One of the companies like this that I like right now is not as well-known as Amazon or Verizon, but it’s got excellent growth potential.
It’s already one of the largest semiconductor equipment manufacturers in the world. And it’s working at the cutting edge of many of the next-generation technologies I mentioned earlier: supplying products for machine learning, optics, sensors and analytics for use in self-driving cars, robotics, cloud computing and the IoT.
It’s also a fundamentally superior company, which was evident in its strong fourth-quarter results. While other companies’ growth ground to a halt because of the negative impact of the coronavirus, this company’s earnings grew about 50% year-over-year while sales rose 16%, topping analysts’ estimates on the top and bottom line.
Plus, the company approved its 11th consecutive annual dividend increase. So, it offers the rare one-two punch of growth and income.
The bottom line: This is a fundamentally superior stock that’s setting itself up to profit from 5G’s infrastructure and technology expansion. That’s just where we want to be at this stage of 5G’s development.
To learn more about the stock, as well as a more in-depth look at the 5G revolution, sign up now and you’ll receive my special research report The King of 5G “Turbo Button” Technology – absolutely free.
Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Microsoft (MSFT), Amazon (AMZN)