The best 5G stocks will evolve over time as business services delivered via cloud computing usurp consumer applications.X Apple ( [AAPL](https://research.investors.com/quote.aspx?symbol=AAPL)) remains one 5G stock in the consumer space to watch amid iPhone upgrades and the 2024 roll out of mixed-reality headsets.In China, Huawei’s new 5G Mate 60 Pro looms as a serious rival to the iPhone 15, analysts say.One issue is how many 5G Mate 60 Pros Huawei can make.Meanwhile, investors should look for updates on company earnings calls as more smartphones, laptops, autos and internet-connected industrial devices use 5G technology.Led by T-Mobile US ( [TMUS](https://research.investors.com/quote.aspx?symbol=TMUS)), wireless firms in the U.S.
are deploying 5G wireless services using high-performance, midband radio spectrum.T-Mobile holds the most 5G wireless spectrum among U.S.service providers.
Verizon Communications ( [VZ](https://research.investors.com/quote.aspx?symbol=VZ)) and AT&T ( [T](https://research.investors.com/quote.aspx?symbol=T)) are playing catchup.Goldman Sachs expects 5G network capital spending by the big three carriers to fall.
“All these carriers are on track to complete the initial phases of their 5G network upgrades in 2023.,” said a Goldman Sachs report.”T-Mobile already covers 325 million peoples with 5G.It is on pace to cover 300 million people with 200 MHz of mid-band spectrum by year-end.AT&T’s 5G network covers 290 million people with 5G.” The report went on to say: “The carrier is on its way to 200 million people on mid-band by year-end.Verizon covers more than 200 million people with C-Band spectrum, which puts it ahead of pace to meet its target of covering 250 million people with Ultra Wideband by the end of 2024.” Mid-band 5G provides faster data speeds.5G Stocks: Fixed Broadband Takes On Cable TV Companies Another big 5G spectrum holder is Dish Network, a satellite-TV service provider.
Amid concern over the financing of its 5G wireless network buildout, Dish on June 15 said it has met U.S.build-out goals set by the Federal Communications Commission.
T-Mobile and Verizon continue to ramp up fixed wireless broadband services to homes.Most new connections use 5G bandwidth rather than older 4G networks.T-Mobile and Verizon are offering discounts on bundles of 5G broadband and cell phone services.T-Mobile added 509,000 5G broadband customers in the June period versus 523,000 in the first quarter.In the June period, Verizon added 384,000 5G broadband subscribers, about the same as in the first quarter.In 2022, T-Mobile added 2 million 5G fixed broadband subscribers, up from 546,000 the year earlier.
Verizon added 1.17 million fixed broadband subscribers, up from about 400,000, in the previous year.T-Mobile aims to sign up 7 to 8 million 5G fixed broadband subscribers by 2025, with services available to about 40 million US.households.Verizon is targeting 4 to 5 million 5G fixed broadband customers by 2025.It aims to reach 50 million U.S households.5G Stocks: Industrial Sector Leads On Earnings Calls According to a Bank of America study, 5G mentions on company earnings calls peaked in 2020.
Excluding tech and telecom companies, the industrial sector currently has the most mentions currently of 5G, said a BofA report.Companies in the industrial sector are moving ahead with private 5G networks, said BofA.”The industrials sector is by far the industry with the greatest 5G engagement,” said the BofA report.”The industry in aggregate was responsible for 70% of total non tech/telco companies mentioning 5G in 2022.” Industrial applications include connecting low-power sensors to machinery and machinery parts, enabling factories, airlines, automakers, and other industrial operators to proactively monitor and manage equipment repairs and replacements.Meanwhile, the supply chain of Apple stock is a seasonal and cyclical opportunity for investors eyeing 5G stocks.
In a negative development, Intel ( [INTC](https://research.investors.com/quote.aspx?symbol=INTC)) is exiting the market for 5G-equipped laptops.In addition, chipmaker Qualcomm ( [QCOM](https://research.investors.com/quote.aspx?symbol=QCOM)) has warned of weakening global smartphone sales.However, companies such as Verizon are finally moving traffic to stand-alone 5G “core” networks.That will impact what types of network gear they purchase.Semiconductor stocks offered an early play on 5G wireless and remain an opportunity.
Investors have been cautious on 5G network gear makers and other infrastructure plays, like cell-phone tower operators.Cloud Computing, 5G Wireless Synergy In the long run, 5G wireless services delivered to businesses via cloud computing giants like Amazon.com ( [AMZN](https://research.investors.com/quote.aspx?symbol=AMZN)), Microsoft ( [MSFT](https://research.investors.com/quote.aspx?symbol=MSFT)) and Alphabet’s ( [GOOGL](https://research.investors.com/quote.aspx?symbol=GOOGL)) Google could offer the best 5G stocks.Many startups are active in “edge computing.” Cloud computing infrastructure is expected to play a big role in deploying 5G wireless services.”Over the past few years, the major telecommunications operators have all signed partnerships with the top cloud stalwarts to help provide greater network efficiency, reduced latency, and faster speeds in improving the entire 5G ecosystem,” Wedbush analyst Daniel Ives said in a note.He added: “The opportunity for cloud providers arises from edge computing, which is putting data processing power closer to customers’ devices for better performance.
As the push for 5G continues throughout the country, there is clear a multi-billion-dollar opportunity for cloud providers to win.” Research firm Dell’Oro projects that 5G workloads on the public cloud will grow revenue at an 88% compounded annual growth rate from 2022 to 2026.Over that period, Dell’Oro estimates cumulative revenue at $4.6 billion.5G Stocks: Dish Network Continues Build-Out South Korea and China lead in 5G network coverage while Europe lags.
Smartphones currently drive most demand for 5G chips.Research firm Omdia forecasts that by 2026, 40% of all mobile subscriptions will be 5G, totaling 4.8 billion.In addition, annual 5G mobile service revenues are expected to reach $540 billion worldwide by 2026, representing 60% of revenues.With China’s market already highly penetrated, Barclays expects India to be the fastest growing market for 5G smartphones from 2022 through 2025.Aside from Qualcomm, other companies that make chips built into smartphones include Qorvo ( [QRVO](https://research.investors.com/quote.aspx?symbol=QRVO)), Marvell Technologies ( [MRVL](https://research.investors.com/quote.aspx?symbol=MRVL)), Skyworks Solutions ( [SWKS](https://research.investors.com/quote.aspx?symbol=SWKS)) Cirrus Logic ( [CRUS](https://research.investors.com/quote.aspx?symbol=CRUS)) and Analog Devices ( [ADI](https://research.investors.com/quote.aspx?symbol=ADI)).Meanwhile, naysayers still question the return on 5G investment for telecom companies.
They point to the lack of a 5G “killer app” for consumers.Enterprise Market Could Be Revenue Driver A wide range of tech companies are [building 5G ecosystems for private networks](https://www.investors.com/news/technology/5g-stocks-beyond-apple-5g-best-could-shift-from-smartphones-to-enterprise-plays/) that deliver business-to-business services.
Telecom industry group 5G Americas forecasts that the addressable market to incorporate 5G into private business networks will jump sharply over the next five years, to $16.9 billion in 2025 from $1.9 billion in 2020.In many industrial settings and company campuses, 5G infrastructure is expected to displace Wi-Fi-based services.Also, pundits expect 5G wireless to have a role in manufacturing automation, cloud gaming, autonomous vehicles, drones and remote health care services.In time, the breadth of 5G stocks will expand.The future of 5G wireless lies in the industrial Internet of Things, remote health care, drones and robotics, autonomous driving, smart cities and more.For some 5G stocks, the long-term opportunity will be tied to new networks that blur the line between mobile and fixed-line infrastructure.Some chipmakers sell into the 5G network gear market.
They include Marvell, Broadcom ( [AVGO](https://research.investors.com/quote.aspx?symbol=AVGO)), Intel ( [INTC](https://research.investors.com/quote.aspx?symbol=INTC)), Texas Instruments ( [TXN](https://research.investors.com/quote.aspx?symbol=TXN)) and Analog Devices.Meanwhile, Xilinx ( [XLNX](https://research.investors.com/quote.aspx?symbol=XLNX)) makes programmable chips built into prototype network gear.5G Networks Require Fiber-Optic Links The global 5G radio access market will jump to $21 billion in 2024, up from less than $4 billion in 2019, research firm Omdia forecasts.
Further, 5G also is a long-term opportunity for network gear makers Ericsson, Nokia and Samsung.Cellphone tower operators American Tower ( [AMT](https://research.investors.com/quote.aspx?symbol=AMT)), Crown Castle and SBA Communications ( [SBAC](https://research.investors.com/quote.aspx?symbol=SBAC)) also could get a 5G boost, analysts say.Crown Castle will be a 5G infrastructure partner of Dish Network.Moreover, 5G networks will connect to fiber-optic networks for “long haul” purposes.That will provide reliability for emerging automotive, robotics and medical applications.Potential 5G stocks to buy include Corning ( [GLW](https://research.investors.com/quote.aspx?symbol=GLW)), Ciena ( [CIEN](https://research.investors.com/quote.aspx?symbol=CIEN)) and other fiber-optic players.
Meanwhile, Crown Castle makes “small-cell” radio antennas for 5G services in urban areas.The small-cell antennas — hung on utility poles or building rooftops — will require fiber-optic connections to local hubs.Local government approval, though, is required to expand 5G networks.In addition, Rysavy Research projects that there will be 1 million U.S.outdoor small cells by 2028, up 10 times from today’s levels.
How 5G Wireless Will Change Cloud Computing Edge computing deploys data processing, storage and networking close to sensors and where other data originate, near the “edge” of the network.Further, the goal is to process and analyze data locally in real time rather than send it to faraway data centers in the internet cloud.”The advent of 5G should mean the rollout of many new technologies we certainly haven’t yet imagined,” economist Ed Yardeni said in a recent report.”To make them possible, the tech gurus are saying that cloud computing will move from a cloud server far away to equipment on the edge of a neighborhood’s network.Edge computing should continue to increase the speed of data transmission, but carriers will have to open their wallets to make it happen.” Further, Microsoft is selling global network transport and routing services to 5G network operators.Microsoft calls the initiative “Azure for Operators.” Microsoft purchased AT&T’s network cloud business.5G Stocks: Wireless Firms Find Cloud Partners Amazon Web Services and Google are also selling 5G-related cloud infrastructure services.
Also, AWS in December 2021 announced plans to sell private 5G network services to enterprise customers.Meanwhile, the AWS “5G in a box” service initially will use shared “CBRS” spectrum.In the long run, Amazon could partner with Dish for a 5G network, analysts speculate.In addition, Verizon has partnered with AWS, Google and Microsoft to develop 5G cloud services.Edge computing should be a big opportunity for chipmakers Nvidia and Intel, some analysts say.Nvidia and Intel are the biggest providers of data center processors for cloud applications.Also, mini data centers in neighborhoods will link to [cloud-computing](https://www.investors.com/news/technology/cloud-computing-cloud-stocks/) infrastructure.
Nokia and Ericsson are developing 5G cloud gateways.Dell Technologies ( [DELL](https://research.investors.com/quote.aspx?symbol=DELL)), Hewlett Packard Enterprise ( [HPE](https://research.investors.com/quote.aspx?symbol=HPE)), Nokia and others aim to capitalize on edge computing.Follow Reinhardt Krause on Twitter [@reinhardtk_tech](https://twitter.com/reinhardtk_tech) for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.YOU MAY ALSO LIKE: [IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today](https://www.investors.com/product/ibd-digital/?artProdLink=IBD_Digital) [Learn How To Time The Market With IBD’s ETF Market Strategy](https://www.investors.com/market-trend/ibds-etf-market-strategy/ibds-etf-market-strategy/) [IBD Live: A New Tool For Daily Stock Market Analysis](https://www.investors.com/research/stock-market-analysis-start-day-ibd-live/) [Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader](https://www.investors.com/product/swingtrader/?artProdLink=Swingtrader).
