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8 best 5G stocks to buy in 2021

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Here are eight stocks benefiting from the 5G boom. The deployment of 5G wireless networks and 5G compatible devices is one of them…

Here are eight stocks benefiting from the 5G boom.

The deployment of 5G wireless networks and 5G-enabled devices is one of the biggest near-term growth trends in the tech world. Wireless service providers are already testing and deploying 5G networks, which enable faster and better internet connections, better global connectivity, increased capacity for advanced connected software applications and less latency for users. Bank of America estimates that the 5G wireless deployment cycle is less than three years old, and wireless network upgrades have provided an investment opportunity of around 10 years in the past. Here are eight of the top 5G Bank of America stocks to buy.

Marvell Technology Inc. (symbol: MRVL)

Marvell Technology is a semiconductor company providing solutions for the data storage, communications and consumer markets. Analyst Vivek Arya says an acceleration in the global rollout of 5G should allow Marvell to gain market share in China’s Huawei’s radio access network, or RAN. Marvell is exposed to some of the top growth trends in tech, including cloud computing and advanced automobiles. Following the recent Marvell Analyst Day, Arya said she is well positioned to deliver at least 15% annual revenue growth and 25% annual earnings per share growth through 2024. Bank of America has a “buy” rating and a price target of $ 80 for the MRVL stock, which closed at $ 67.70 on October 27.

Analog Devices Inc. (ADI)

Analog Devices manufactures high performance integrated circuits used in signal processing applications. Arya says Analog Devices is also expected to gain RAN market share from China as the global rollout of 5G progresses. The company finalized the Maxim acquisition in September and the combined company expects long-term annual revenue of $ 10 billion. Arya predicts that free cash flow will double in fiscal 2022 and exceed $ 4 billion by fiscal 2023. He says investors should expect excess free cash flow to be reimbursed to investors via dividends and redemptions. Bank of America has a “buy” rating and a price target of $ 210 for ADI stock, which closed at $ 170.46 on October 27.

Qualcomm Inc. (QCOM)

Qualcomm is a semiconductor company specializing in advanced wireless broadband technology and a market leader in the production of 5G modems. Analyst Tal Liani said Qualcomm’s impressive 114% growth in radio frequency, or RF, revenue in the last quarter was due to 5G and millimeter wave deployments. Liani says both of these growth trends will accelerate in 2022. Qualcomm’s automotive silicon and Internet of Things revenue growth has also been strong – two sources of growth that Liani says are sustainable over the long term. Bank of America has a “buy” rating and a price target of $ 200 for QCOM stock, which closed at $ 131.20 on October 27.

Broadcom Inc. (AVGO)

Broadcom is one of the world’s largest diversified analog semiconductor suppliers. Arya says Broadcom is one of the top 5G stock picks because the company has a high exposure to developing 5G infrastructure. Arya says Broadcom may not have the ‘sizzle’ of some of its higher-growth semiconductor stock peers, but its impressive 75% gross margins and $ 13.77 billion in cash flow. forecasted free cash flow for 2021 makes the company one of the biggest cash cows in technology. Bank of America has a buy rating and price target of $ 580 for the AVGO stock, which closed at $ 523.11 on October 27.

Teradyne Inc. (TER)

Teradyne designs automated semiconductor, telecommunications and industrial test equipment. Arya says Teradyne is playing on the increasing complexity of 5G semiconductor testing. Teradyne estimates that the semiconductor testing market in 2021 is worth around $ 4.5 billion, of which $ 1.8 billion is for smartphones and $ 1 billion for computing. Arya says Teradyne is also heavily exposed to the advanced automotive technology market, where demand continues to significantly outstrip supply. Finally, Arya claims that Teradyne only has around 2% penetration of the potentially massive industrial automation market. Bank of America has a “buy” rating and a target price of $ 165 for the TER stock, which closed at $ 123.07 on October 27.

Qorvo Inc. (QRVO)

Qorvo manufactures RF integrated circuits for wireless communication applications. Arya says accelerating construction of 5G base stations has been a tailwind for Qorvo’s business. He estimates that Qorvo has more than 10 times more content opportunities in 5G network infrastructure than in 4G networks, a phenomenon that is driving double-digit growth in the company’s non-mobile revenue. Arya claims that investment in 5G infrastructure in the US and Europe will accelerate in 2022. Qorvo has also significantly reduced its exposure to Apple Inc. (AAPL), reducing risk. Bank of America has a buy rating and price target of $ 225 for the QRVO stock, which closed at $ 165.27 on October 27.

NXP Semiconductors NV (NXPI)

NXP Semiconductors specializes in high performance mixed signal chips and is a leader in 5G power amplifiers. Arya says NXP has several bullish catalysts, including expanding automotive content, increasing gross margins, and robust free cash flow. He estimates that NXP can achieve $ 12 to $ 15 in annual earnings per share over the long term. 5G deployments in the United States increase the company’s communications revenue, which accounts for 16% of its overall sales. Meanwhile, Arya says NXP can outperform its automotive chip competitors, gaining market share in a tough business environment. Bank of America has a “buy” rating and a target price of $ 240 for NXPI stock, which closed at $ 192.41 on October 27.

MACOM Solutions Technologiques Holdings Inc. (MTSI)

MACOM Technology Solutions provides high performance analog RF, microwave, millimeter wave and photonic products for use in networks. Arya claims that MACOM has an underrated opportunity in its telecommunications business, which accounts for around 30% of total sales. He says the company’s 5G base station mix will improve in 2022 as deployments in the United States and Europe accelerate. In fact, he predicts double-digit telecommunications sales growth in 2022. Gross margins hit record levels in the last quarter as management continues to focus on high-margin product design. Bank of America has a “buy” rating and a price target of $ 70 for the MTSI stock, which closed at $ 66.12 on October 27.

The best 5G stocks to buy in 2021:

– Marvell Technology Inc. (MRVL)

– Analog Devices Inc. (ADI)

– Qualcomm Inc. (QCOM)

– Broadcom Inc. (AVGO)

– Teradyne Inc. (TER)

– Qorvo Inc. (QRVO)

– NXP Semiconductors NV (NXPI)

– MACOM Technology Solutions Holdings Inc. (MTSI)

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8 best 5G stocks to buy in 2021 originally appeared on usnews.com


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