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The Race to 5G: $1 Billion Subsidy Could Propel 5G Stocks
The race to 5G is becoming a global battle, and it looks like China’s Huawei is substantially leading the pack. Now US congressmen/women are lobbying to subsidize our 5G rollout with more than $1 billion in funding to keep pace with China’s swift 5G enhancement. This subsidy could directly benefit Verizon among other wireless carriers, as well as 5G hardware & devices companies like Qualcomm.
This race to become the first fully-integrated 5G network and best-in-class capabilities is analogous to The Space Race in the late 50s and 60s with the Soviet Union, which was fueled by the Cold War. Today, the race is with China, and the fuel is the US-China trade conflict.
Unlike The Space Race, the battle for fully integrate 5G infrastructure will have real-world significance. 5G technology will quickly advance the capabilities of mobile devices, which is going to change the world of hardware. 5G will progress the nations and economies that can achieve its full integration first.
Huawei’s dominance in 5G concerns US government officials who see Huawei’s influence on 5G as a threat. US officials claim that Huawei is receiving government support that is helping them get ahead of the curve.
A bipartisan group of senators are pushing for what they are calling Utilizing Strategic Allied Telecommunications Act, which would raise money from 5G spectrum auctions as well as create a security fund for purchase of non-Chinese equipment abroad.
Huawei made it on the US’s blacklist last year after the US claimed the company was working with the Chinese government and engaging in espionage around the world. In the eyes of the US government, Huawei’s 5G capabilities are becoming a threat to nations across the globe.
The innovation grants that are being proposed by the US senate could stimulate the technological capabilities of the US’s most prominent 5G device & hardware companies and put US technology at the forefront of global 5G demand.
At the core of 5G capabilities are the integrated circuits that power the devices. Innovation in mobile chips is being led by Qualcomm and Skyworks Solutions, while infrastructure chips are being headed by Broadcom and Intel. All these company’s stand to gain if this proposed subsidy is pushed through.
Take Away
5G technology is going to make our world much more mobile and allow for device capabilities that couldn’t otherwise be achieved. The race to fully integrated 5G networks and devices that leverage this technology is underway, and China has the lead… for now.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Verizon, Qualcomm, Broadcom, Intel and Skyworks Solutions
For Immediate Release
Chicago, IL – January 16, 2020 – Today, Zacks Investment Ideas feature highlights Features: Verizon (VZ - Free Report) , Qualcomm (QCOM - Free Report) , Broadcom (AVGO - Free Report) , Intel (INTC - Free Report) and Skyworks Solutions (SWKS - Free Report) .
The Race to 5G: $1 Billion Subsidy Could Propel 5G Stocks
The race to 5G is becoming a global battle, and it looks like China’s Huawei is substantially leading the pack. Now US congressmen/women are lobbying to subsidize our 5G rollout with more than $1 billion in funding to keep pace with China’s swift 5G enhancement. This subsidy could directly benefit Verizon among other wireless carriers, as well as 5G hardware & devices companies like Qualcomm.
This race to become the first fully-integrated 5G network and best-in-class capabilities is analogous to The Space Race in the late 50s and 60s with the Soviet Union, which was fueled by the Cold War. Today, the race is with China, and the fuel is the US-China trade conflict.
Unlike The Space Race, the battle for fully integrate 5G infrastructure will have real-world significance. 5G technology will quickly advance the capabilities of mobile devices, which is going to change the world of hardware. 5G will progress the nations and economies that can achieve its full integration first.
Huawei’s dominance in 5G concerns US government officials who see Huawei’s influence on 5G as a threat. US officials claim that Huawei is receiving government support that is helping them get ahead of the curve.
A bipartisan group of senators are pushing for what they are calling Utilizing Strategic Allied Telecommunications Act, which would raise money from 5G spectrum auctions as well as create a security fund for purchase of non-Chinese equipment abroad.
Huawei made it on the US’s blacklist last year after the US claimed the company was working with the Chinese government and engaging in espionage around the world. In the eyes of the US government, Huawei’s 5G capabilities are becoming a threat to nations across the globe.
The innovation grants that are being proposed by the US senate could stimulate the technological capabilities of the US’s most prominent 5G device & hardware companies and put US technology at the forefront of global 5G demand.
At the core of 5G capabilities are the integrated circuits that power the devices. Innovation in mobile chips is being led by Qualcomm and Skyworks Solutions, while infrastructure chips are being headed by Broadcom and Intel. All these company’s stand to gain if this proposed subsidy is pushed through.
Take Away
5G technology is going to make our world much more mobile and allow for device capabilities that couldn’t otherwise be achieved. The race to fully integrated 5G networks and devices that leverage this technology is underway, and China has the lead… for now.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.