5G is still relatively new, and we believe that the companies dealing with 5G will also evolve over time. For those who wanted to get into the 5G wireless early, the best option was the semiconductor stocks. Even today, companies in the chip-making business still have a good opportunity to get exposure to the 5G sector.
But if we look at the bigger picture, the next big thing will be the services powered by 5G wireless service delivered directly to cloud computing companies such as Amazon. Once again, many opportunities can be found in the cloud computing sector!
If we talk about the popular semiconductor chip makers, we have Qualcomm (QCOM), which recently reported better-than-expected earning targets.
DISH (Dish network) also turned into Las Vegas, which is the first 5G market for this company. The dish is a TV service provider, and with its adoption of the 5G technology, it plans to improve its service offering.
Is 5G The Real Thing?
There are some people who are questioning whether the 5G investments made by telecom companies will even provide a good return or not. They believe that there is no killer app that can make the customers truly switch to 5G.
In fact, many are saying that no big revenue increase will happen in the telecom sector around the world, even with the adoption of 5G. They believe that the situation will remain like this for the next 3 years (2022-2025).
So, on the one hand, it is certain that significant investment will be required for the 5G degradation. On the other hand, there is no clear picture of whether this will improve the revenue or not!
In simple words, a lot of 5G success is now relying on whether we see any practical business use of 5G or not. Because if the 5G use is only going to be limited to residential consumers, we may not see a big revenue jump!