In 2020, there are more stocks with potential than ever before. In particular, 5G stocks have stood out above the rest. Let us take a close and detailed look at four facts about investing in 5G stocks.
What is 5G?
To start things off, 5G is the next generation of cellular networks. It is the successor to 4G, which was already a highly successful standard. 5G will soon be the default network of smartphones around the world. There are many cellular providers and domains, but they all will rely on 5G sooner or later. 5G has a number of associated stocks that power these innovations and companies.
How is it important
Next, 5G is important due to its speed. You might feel that 4G is already quite powerful, but 5G takes this speed to the next level. Some experts predict that 5G will eventually become up to 100 times faster than 4G. You’re able to make calls and browse the internet faster than ever. Using ultra high frequency airwaves, 5G is able to 5G is also becoming universal, so it’s crucial to stay with the times and pursue this technology.
The risks of investing in 5G
Overall, there aren’t too many risks of investing in 5G. The biggest concern is whether 5G will take over the market and dominate. While this isn’t guaranteed, it is overwhelmingly likely given the current trajectory. 5G is exponentially faster than 4G, and many providers are already making the switch in the first half of 2020. According to the experts at Money Morning, “The 5G rollout will be running at full throttle, a piece of a greater puzzle involving AI, the cloud, transportation, medicine, entertainment, and much more.” As long as you have some confidence in technology, you should feel good about committing to 5G stocks. Some people are also concerned that a new development such as 6G could take over soon, but that isn’t very likely. As of now, 5G is the way to go.
The easiest way to invest in 5G
Last but not least, the easiest way to invest in 5G is possibly investing in companies that make 5G chips. Chips are at the heart of 5G, and they are the most reliable thing to invest in. For every smartphone that is centered around 5G, it needs a chip with 5G capabilities. Broadcom, Xilinx and Intel are three of the most renowned chip stocks that you should invest in. Not only are these chips compatible with 5G, but they also support other activities such as speech recognition and virtual reality. The chips can be custom-built for certain phones in order to enable further features.
In conclusion, these are a couple of important facts about investing in 5G stocks. Within the next year, it’s in your best interest to dive into 5G stocks.