7 best 5G stocks to buy in 2021
Here are seven stocks benefiting from the 5G boom. The deployment of 5G wireless networks and 5G compatible devices is one of them…
Here are seven stocks benefiting from the 5G boom.
The deployment of 5G wireless networks and 5G-enabled devices is one of the biggest long-term growth trends in the technology world today. Fifth generation wireless networks will allow faster and better Internet connections, more overall connectivity, higher capacity for advanced connected software applications and less latency for Internet users. Bank of America says wireless infrastructure deployment cycles lasted about a decade. The world is only about 2.5 years into the current cycle, suggesting that there are more than seven years of 5G investment opportunities ahead. Here are seven of Bank of America’s top 5G stocks to buy.
Marvell technology (ticker: MRVL)
Marvell Technology is a semiconductor company which provides solutions for the data storage, communications and consumer markets. Analyst Vivek Arya says 5G is just one of the company’s many massive growth drivers, including cloud services and next-generation automotive technology. Additionally, Arya says the revenue synergies from Marvell’s takeover of Inphi will boost its overall numbers in the coming quarters. Business reopenings are a short-term tailwind, and Arya predicts the company could hit $ 3 in annual earnings per share over the long term. Bank of America has a “buy” rating and a price target of $ 62 for MRVL stock.
Analog devices (ADI)
Analog Devices manufactures high performance integrated circuits used in signal processing applications. Bank of America estimates that Analog Devices has four times the content in 5G radios than in 4G radios. Arya says Analog has long-term growth opportunities in 5G communications, automobile technological and industrial markets. At the same time, he says the company has “best-in-class” free cash flow growth and gross margins that recently exceeded management’s long-term goal of 70%. Automotive segment battery management revenue also doubled in the first quarter. Bank of America has a “buy” rating and a target price of $ 178 for ADI stock.
Qualcomm is a semiconductor company specializing in advanced wireless technologies broadband Technology. Qualcomm is also the market leader in the production of 5G modems. Analyst Tal Liani says 5G deployment rates and subscriber growth follow about two years ahead of the pace of 3G and 4G deployments. Qualcomm management said they believe the 5G lifecycle will be longer than the typical 10-year network cycle given the more complex technology involved. Meanwhile, Qualcomm’s supplier relationship with Apple (AAPL) remains a cash cow. Bank of America has a “buy” rating and a price target of $ 200 for QCOM stock.
Teradyne designs automated equipment for semiconductors, telecommunications and industrial testing. Arya claims the complexity of 5G network testing creates unique 5G exposure for Teradyne. The company is the market leader in semiconductor testing and has both a strong balance sheet and a long-term growth outlook, he said. He predicts the company could reach $ 9 in annual EPS by 2025 as the complexity of semiconductor products increases and industrial automation expands. Teradyne is also gaining market share in the systems-on-chip and memory markets. Bank of America has a “buy” rating and a target price of $ 155 for the TER stock.
Qorvo manufactures radio frequency integrated circuits for wireless communication applications. The company has a diverse exposure to 5G handsets and a strong portfolio of wireless infrastructure products. Arya claims Qorvo’s impressive Wi-Fi sales and improved 5G product line increase profitability, and he claims investors don’t fully appreciate the company’s improved gross margin profile compared to to his peers. The company expects record free cash flow margins and has a strong balance sheet that allows it to support its new share of $ 2 billion. redeem program. Bank of America has a “buy” rating and a target price of $ 215 for QRVO.
Broadcom is one of the world’s largest diversified analog semiconductor suppliers. Arya says Broadcom investors have strong visibility through 2022, as orders for next year are already well booked. He says many of the company’s current growth drivers will likely continue into next year as well. Broadcom also pays a 3% dividend, a rarity among tech growth stocks. Arya says Broadcom is attractive to both growth and income investors, given that it is on track for 10% revenue growth and 15% EPS growth through at least 2023 . Bank of America has a “buy” rating and a target price of $ 580 for AVGO stock.
NXP Semiconductors (NXPI)
NXP Semiconductors specializes in high performance mixed signal chips used in end markets such as automotive and mobile payments industries. NXP is a leader in 5G power amplifiers and is also Arya’s first choice of auto semiconductor stock. Arya claims that growth in communication demand will accelerate in the second half of 2021 as the development of 5G increases. He says NXP also has a strong balance sheet and over 20% growth in free cash flow, allowing flexibility on redemptions, dividend hikes and potential acquisitions on the road. Bank of America has a “buy” rating and a price target of $ 240 for NXPI stock.
Seven best 5G stocks to buy in 2021:
– Marvell technology (MRVL)
– Analog devices (ADI)
– Qualcomm (QCOM)
– Teradyne (TER)
– Qorvo (QRVO)
– Broadcom (AVGO)
– NXP Semiconductors (NXPI)
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