As demand for consumer electronics cools, investing in 5G technology stocks in 2024 hinges on understanding long-term company offerings. With individual spending no longer focused on shiny new phones, companies cannot rely on consumer trends to remain profitable. This makes 2024 a year for innovation and integration across the telecommunications space.
5G’s connectivity and blazing speeds make it the perfect pair for dozens of industries, from healthcare to manufacturing to agriculture. However, the expansion of 5G services faces several hurdles in the coming years. Development costs may provide hurdles for 5G companies to overcome, but as the need for access grows, the reward outweighs the risks.
For investors to lock in the biggest long-term gains, it is important to understand what sets service providers apart. That’s why these three companies have 5G technology stocks worth watching for major gains, from expanding technologies to new chips.
Hovering over 25% of the US carrier market share, Verizon (NASDAQ:VZ) provides an opportunity to challenge the status quo. Thanks to its early access to high-speed radio frequencies, Verizon currently leads the 5G race in reliability. This bodes well for its adoption into industries that rely on stable connections, like healthcare and manufacturing.
By offering the most consistent 5G service, Verizon also leverages long-term contracts to increase its stock price. Though not the largest network by coverage, Verizon’s 5G coverage focuses on constant expansion. Furthermore, Verizon may out-compete larger providers by expanding its famously reliable network.
Verizon also offers solid dividend yields of nearly 7%, significantly higher than the S&P 500 average. This makes Verizon stock ownership a tremendous deal for investors seeking steady income performance. Pair this with a 17-year streak of increasing the dividend, and Verizon becomes a moderate buy option.
From its humble beginnings as a regional subsidiary, T-Mobile’s (NASDAQ:TMUS) monolithic rise to 5G dominance needs no introduction. Founded as the Western Wireless Corporation and acquired by Deutsche Telekom in 2001, TMUS’s coffers for expansion run deep. Today, the company invests in every technology possible to stay relevant against its major US-based competitors.
Boasting the fastest 5G network in the US, T-Mobile positions itself as a more affordable yet effective alternative. Moreover, TMUS’s extensive investment in supporting stadium networks and entertainment venues increases brand recognition. T-Mobile investments also tie in nicely with America’s biggest sporting event: the Super Bowl. Due to significant upgrades, T-Mobile’s 5G bandwidth will likely handle the surge of users in Las Vegas during the game.
A rapidly growing network and a new home internet service have inspired significant confidence among analysts. With such favorable coverage, TMUS is currently a strong stock to buy among 5G technology stocks in 2024.
Though 5G usually conjures images of radio antennas and broadband networks, Qualcomm (NASDAQ:QCOM) approaches the industry more subtly. Qualcomm positioned itself for the endless tech innovation of the last two decades by specializing in the communications chip industry.
Now QCOM’s chips are found in countless smartphone brands and provide functionalities like Wi-Fi connection, modems, and even wireless charging. Though a slowdown in the smartphone market bumped its stock down in 2023, QCOM’s next takeoff comes from its innovation.
Starting in Q1 of 2024, Qualcomm’s new Snapdragon X Elite aims for the PC market rather than staying with smartphones. This market breakthrough attempt comes at a time when QCOM wants to take a slice of the AI boom’s profitability. QCOM’s stock rating has become a moderate buy among 5G technology stocks in 2024 by offering a chip poised for better integration than the competition. Considering these new developments, it seems like QCOM could yield some major gains in the coming years.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.