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3 Must-Watch 5G Stocks Poised for the Next Growth Wave in 2026
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Key Takeaways
Enterprise 5G adoption, private wireless, IoT, and edge computing are expanding demand for advanced networks.
Rising data traffic and high-bandwidth apps are pushing operators to invest heavily in 5G upgrades.
Carriers are accelerating network modernization using open, interoperable, high-capacity 5G systems.
The 5G rollout worldwide has entered a new phase in 2025. Enterprise deployments, use of next-generation technologies, such as private wireless, IoT and edge computing, are driving 5G network expansion worldwide. Since the initial commercial launch of 5G around 2020, the industry has evolved significantly. It has expanded beyond the legacy telecommunication services. The U.S. 5G market has become highly saturated with all the major telecom service providers covering more than 300 million people across the country.
Amid the fierce competition in the industry, companies like AT&T, Verizon and T-Mobile are focusing on developing advanced use cases. The company has expanded its portfolio cater to sectors like automotive, public safety, retail and others. North America remains the region with the highest 5G adoption rates. However, the emerging economies of South East Asia and Oceania remain a major market for 5G adoption. Per an Ericsson report, the 5G subscriptions in the region are projected to reach around 680 million in 2031.
The year 2025 has been a roller coaster year for the 5G industry. Tariff-related uncertainties and growing geopolitical unrest have impacted the 5G companies. The U.S. Government cites 5G technology as essential for national security. The government has imposed significant tariffs on 5G equipment imports from China, leading to higher costs for network equipment providers. Despite these factors, 5G network companies were able to register a strong share performance in 2025. It is to be seen whether they can maintain the momentum in 2026 or not.
Per a report from Grand View Research, the 5G infrastructure market is expected to witness a 13.1% compound annual growth rate between 2026 and 2033, whereas the 5G services market is expected to witness a 62.2% CAGR between 2025 and 2030. Telecom operators and network infrastructure providers are set to gain from this emerging trend.
Digital Transformation Across Industries is Driving 5G Demand
Organizations worldwide have been undertaking rapid digital transformation across their operations. Multiple factors are propelling this transformation. The companies are moving towards automation, remote or hybrid working models. Transition to cloud and distributed workloads requires consistent and secure connectivity. Employees need fast and real-time access to various applications.
Companies are focusing on industrial automation and the adoption of Industrial 4 standards. This requires deployment of AI sensors, leading-edge automated systems for maintenance and other daily operations. Moreover, IoT devices are becoming the backbone of the enterprise’s digital infrastructure. An ultra-reliable, low-latency network is paramount for the optimal functioning of a large volume of connected devices. This is driving demand for robust 5G connectivity across multiple sectors.
Growing Usage of High Data-Intensive Applications
Mobile networks are undergoing a major shift owing to a change in the data consumption behavior of end users. An expanding streaming services, multiplayer gaming, remote work models have led to a sharp rise in data traffic over the past few years. The rapid growth of social media platforms is further amplifying the data usage.
Large data volumes and growing usage of high data -intensive applications are putting pressure on the existing infrastructure of telecom service providers. Telecom operators worldwide are investing heavily in upgrading 5G infrastructure and capacity to support the consumer demand. Per a report from Ericsson, mobile data traffic is expected to witness a 16% CAGR from 2024 to 2031. Shares of mobile data carried over 5G are expected to grow from 34% in 2024 to 83% in 2031.
Key Picks
Headquartered in Stockholm, Sweden, Ericsson (ERIC - Free Report) is a leading provider of communication networks, telecom services and support solutions. With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.
The company is placing strong emphasis on strengthening its leadership position in the Mobile Networks. Despite a challenging environment, the company inked a historic five-year contract with AT&T for $14 billion. By utilizing Ericsson’s comprehensive wireless equipment portfolio, AT&T is aiming to accelerate the deployment of an open and interoperable Radio Access Network (RAN) across the United States. VodafoneThree, Britain’s biggest mobile phone network and the Saudi Telecom Company have also opted to deploy Ericsson’s portfolio boost digital infrastructure nationwide. Such customer wins are expected to drive growth in the upcoming quarters.
With an ABR of 3.46, the stock has gained 19.4% over the past year. Earnings estimates for ERIC have improved to 5.63% for 2025 and 1.64% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 8.44% and delivered an earnings surprise of 13.51%, on average, in the trailing four quarters. Ericsson currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Image Source: Zacks Investment Research
Headquartered in Finland, Nokia Corporation (NOK - Free Report) is a leading telecom equipment provider with a strong customer base worldwide. It has made significant progress on its three-phased journey of value creation. The company boasts an extensive portfolio that consists of around 20,000 patents, among which 7,000 are essential for 5G. The 5G portfolio is increasingly gaining traction among enterprise customers. It has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset.
Nokia Corporation is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. Its installed base of high-capacity AirScale product, which enables customers to quickly upgrade to 5G, is growing fast.
The company has secured multiple customer wins in recent quarters. Vodafone Three has selected Nokia, along with Ericsson, to drive 5G network modernization. Telin, a major telecommunication company in Singapore, has opted to deploy Nokia solutions to boost data center connectivity in Singapore. The prominent network service provider in India, Bharati Airtel, is collaborating with Nokia to unlock advanced 5G capabilities.
With an ABR of 2.357, the stock has gained 46.1% over the past year. Earnings estimate for NOK has improved to 6.67% for 2025 and 5.26% for 2026, over the past 60 days. Nokia currently carries a Zacks Rank #2.
Image Source: Zacks Investment Research
Headquartered in Hickory, NC, CommScope Holding Company, Inc. (COMM - Free Report) is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company’s solution effectively helps customers increase network capacity, delivering better network response time and performance, and simplifying technology migration.
CommScope’s comprehensive, differentiated portfolio allows it to hold a dominant position in the communication infrastructure industry. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is dedicated to developing solutions designed to support wireline and wireless network convergence, which will be essential for the success of 5G technology.
With an ABR of 1.833, the stock has gained 232.5% over the past year. Earnings estimates for COMM have improved to 27.91% for 2025 and 11.11% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 13.48% and delivered an earnings surprise of 143.98%, on average, in the trailing four quarters. Ericsson currently sports a Zacks Rank #1.
Image Source: Zacks Investment Research
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3 Must-Watch 5G Stocks Poised for the Next Growth Wave in 2026
Key Takeaways
The 5G rollout worldwide has entered a new phase in 2025. Enterprise deployments, use of next-generation technologies, such as private wireless, IoT and edge computing, are driving 5G network expansion worldwide. Since the initial commercial launch of 5G around 2020, the industry has evolved significantly. It has expanded beyond the legacy telecommunication services. The U.S. 5G market has become highly saturated with all the major telecom service providers covering more than 300 million people across the country.
Amid the fierce competition in the industry, companies like AT&T, Verizon and T-Mobile are focusing on developing advanced use cases. The company has expanded its portfolio cater to sectors like automotive, public safety, retail and others. North America remains the region with the highest 5G adoption rates. However, the emerging economies of South East Asia and Oceania remain a major market for 5G adoption. Per an Ericsson report, the 5G subscriptions in the region are projected to reach around 680 million in 2031.
The year 2025 has been a roller coaster year for the 5G industry. Tariff-related uncertainties and growing geopolitical unrest have impacted the 5G companies. The U.S. Government cites 5G technology as essential for national security. The government has imposed significant tariffs on 5G equipment imports from China, leading to higher costs for network equipment providers. Despite these factors, 5G network companies were able to register a strong share performance in 2025. It is to be seen whether they can maintain the momentum in 2026 or not.
Per a report from Grand View Research, the 5G infrastructure market is expected to witness a 13.1% compound annual growth rate between 2026 and 2033, whereas the 5G services market is expected to witness a 62.2% CAGR between 2025 and 2030. Telecom operators and network infrastructure providers are set to gain from this emerging trend.
Digital Transformation Across Industries is Driving 5G Demand
Organizations worldwide have been undertaking rapid digital transformation across their operations. Multiple factors are propelling this transformation. The companies are moving towards automation, remote or hybrid working models. Transition to cloud and distributed workloads requires consistent and secure connectivity. Employees need fast and real-time access to various applications.
Companies are focusing on industrial automation and the adoption of Industrial 4 standards. This requires deployment of AI sensors, leading-edge automated systems for maintenance and other daily operations. Moreover, IoT devices are becoming the backbone of the enterprise’s digital infrastructure. An ultra-reliable, low-latency network is paramount for the optimal functioning of a large volume of connected devices. This is driving demand for robust 5G connectivity across multiple sectors.
Growing Usage of High Data-Intensive Applications
Mobile networks are undergoing a major shift owing to a change in the data consumption behavior of end users. An expanding streaming services, multiplayer gaming, remote work models have led to a sharp rise in data traffic over the past few years. The rapid growth of social media platforms is further amplifying the data usage.
Large data volumes and growing usage of high data -intensive applications are putting pressure on the existing infrastructure of telecom service providers. Telecom operators worldwide are investing heavily in upgrading 5G infrastructure and capacity to support the consumer demand. Per a report from Ericsson, mobile data traffic is expected to witness a 16% CAGR from 2024 to 2031. Shares of mobile data carried over 5G are expected to grow from 34% in 2024 to 83% in 2031.
Key Picks
Headquartered in Stockholm, Sweden, Ericsson (ERIC - Free Report) is a leading provider of communication networks, telecom services and support solutions. With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Ericsson is much in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.
The company is placing strong emphasis on strengthening its leadership position in the Mobile Networks. Despite a challenging environment, the company inked a historic five-year contract with AT&T for $14 billion. By utilizing Ericsson’s comprehensive wireless equipment portfolio, AT&T is aiming to accelerate the deployment of an open and interoperable Radio Access Network (RAN) across the United States. VodafoneThree, Britain’s biggest mobile phone network and the Saudi Telecom Company have also opted to deploy Ericsson’s portfolio boost digital infrastructure nationwide. Such customer wins are expected to drive growth in the upcoming quarters.
With an ABR of 3.46, the stock has gained 19.4% over the past year. Earnings estimates for ERIC have improved to 5.63% for 2025 and 1.64% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 8.44% and delivered an earnings surprise of 13.51%, on average, in the trailing four quarters. Ericsson currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Image Source: Zacks Investment Research
Headquartered in Finland, Nokia Corporation (NOK - Free Report) is a leading telecom equipment provider with a strong customer base worldwide. It has made significant progress on its three-phased journey of value creation. The company boasts an extensive portfolio that consists of around 20,000 patents, among which 7,000 are essential for 5G. The 5G portfolio is increasingly gaining traction among enterprise customers. It has been developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset.
Nokia Corporation is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. Its installed base of high-capacity AirScale product, which enables customers to quickly upgrade to 5G, is growing fast.
The company has secured multiple customer wins in recent quarters. Vodafone Three has selected Nokia, along with Ericsson, to drive 5G network modernization. Telin, a major telecommunication company in Singapore, has opted to deploy Nokia solutions to boost data center connectivity in Singapore. The prominent network service provider in India, Bharati Airtel, is collaborating with Nokia to unlock advanced 5G capabilities.
With an ABR of 2.357, the stock has gained 46.1% over the past year. Earnings estimate for NOK has improved to 6.67% for 2025 and 5.26% for 2026, over the past 60 days. Nokia currently carries a Zacks Rank #2.
Image Source: Zacks Investment Research
Headquartered in Hickory, NC, CommScope Holding Company, Inc. (COMM - Free Report) is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company’s solution effectively helps customers increase network capacity, delivering better network response time and performance, and simplifying technology migration.
CommScope’s comprehensive, differentiated portfolio allows it to hold a dominant position in the communication infrastructure industry. With operators moving toward converged or multi-use network structures, combining voice, video and data communications into a single network, CommScope is dedicated to developing solutions designed to support wireline and wireless network convergence, which will be essential for the success of 5G technology.
With an ABR of 1.833, the stock has gained 232.5% over the past year. Earnings estimates for COMM have improved to 27.91% for 2025 and 11.11% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 13.48% and delivered an earnings surprise of 143.98%, on average, in the trailing four quarters. Ericsson currently sports a Zacks Rank #1.
Image Source: Zacks Investment Research