The latest 5G innovation in the telecommunications sector represents a massive change in the industry. The main actors (companies) and even government agencies have pressed hard for 5G integration. But to understand the phenomenon behind 5G actions, we must look back on the 4G update.
It has been more than ten years since the first 4G phone reached retail stores in the United States. So, we have witnessed the same challenges we face today, that is, the lack of viable networks.
However, the massive increase in data rates has made efforts to overcome the challenges. For example, some of the first 4G networks download speeds of 100 Mbps, substantially faster than an average 3G download speed of 2 Mbps. This is the appeal of 5G.
Also, think about the incredible technologies that emerged or improved with the introduction of 4G. People can now stream movies on their phones, and businesses get instant data updates remotely.
In other words, 5G not only offers a sector to choose the shares to buy. Instead, this technology allows different technologies to prosper. It is a force multiplier, one that occurs only once every several years.
In almost any other circumstance, Qualcomm (NASDAQ: QCOM) would easily qualify as one of the best 5G titles to buy. Qualcomm’s new chip has an initial advantage over this transforming telecommunications innovation. That’s right; there are enough reasons to consider the actions of QCOM seriously.
However, legal problems with Apple (NASDAQ: AAPL) have thrown a dark cloud over QCOM’s actions.
Typically, semiconductor companies sell licenses for their leading technologies, but Qualcomm charges royalties in addition to innovations that are only lightly associated with the initial license.
After resolving the lawsuit last year, Qualcomm added about 50% to the share price and has continued to rise since then.
As I have argued in the past, technology companies have ceased to exist in a vacuum. Instead, we are in a technological cold war for the future digital domain. Therefore, I think the future is bright for QCOM actions because, well, it has to be.
If you are a hardcore player, you usually associate Nvidia (NASDAQ: NVDA) with its in-game graphics processors.
However, the semiconductor company has become a complete technological “big box store” that provides solutions connected to AI and data.
We are merely moving to a point where technological innovation alone does not occur. Before 4G, most computerized solutions focused on data analysis and big data. But with the 4G data rate update, engineers were able to build multiple artificial intelligence applications, such as AV and other automated platforms. As Nvidia is a leader in these innovations, NVDA’s actions offer an exciting exhibition.
But with 5G, several industries are trying to take the next step in automation. In other words, they need combine, artificial intelligence, data, and deep learning
Many 5G investors would probably have considered Ericsson (NASDAQ: ERIC) one of their best shares to buy.
After all, Ericsson provides the communication equipment that makes the launch of 5G practically accessible. Therefore, ERIC shares are easy to buy.
Of course, Ericsson’s long-term price chart tells a different story. During the technological bubble between the end of the 1990s and the beginning of the 2000s, the ERIC title represented legitimate three-digit security. As we all know, the bursting of that bubble has deflated all technological players virtually.
Subsequently, ERIC actions peaked around the $20 level before collapsing during the last major housing crisis and the Great Recession. I think ERIC could climb significantly with 5G.