Jim Cramer: 5G now has momentum needed to invest in
Jim Kramer, host of CNBC’s Mad Money, named 5G wireless technology as one of the most exciting investment topics in 2021 on Friday..
With the deployment of the latest generation of new communication technologies, the fourth generation of wireless technology (4G), introduced back in 2010, will be replaced by a new one, which will further the development of «Internet of things» (Internet of Things, IoT is a network in which not users communicate with each other, but devices themselves to a greater extent) on an even larger scale.
A flood of physical objects, equipped with sensors, software and other technologies, are expected to be able to connect to networks with less energy consumption. 5G adoption will also require more bandwidth.
«We’ve been preparing for a massive 5G rollout for years. It really started last year, but now technology has momentum that we need to invest in.», – said Jim Kramer (Jim Cramer) on show «Crazy money». «I want to offer you options for different ways to play this, so we created Mad Money 5G ETF of 10 of my favorite 5G-related titles».
«Mad Money 5G ETF» Kramer brings together his favorite 5G-focused issuers. The stock basket includes a wireless operator, a cell tower developer, two equipment manufacturers, four semiconductor companies, a cybersecurity firm, and a cloud content provider..
Operator: T-Mobile (TMUS)
Investing in the 5G space puts them in a better position in the future. New multibillion-dollar agreements announced with Ericsson and Nokia to boost growth.
Stocks 6% Below 52-week High.
Cell Towers: Crown Castle (CCI)
Spent many years and billions of dollars building 5G network infrastructure in densely populated areas. Global investment in 4G technology hasn’t paid off yet.
Stocks 12.64% Below 52-week High.
Hardware: Apple (AAPL)
Launched iPhone 12 with 5G support in September. Ready to capitalize on 5G’s massive upgrade cycle.
Stocks 8.39% Below 52-week High.
Equipment: Inseego (INSG)
The company is working to build 5G infrastructure, including 5G mobile hotspots. Balance cleared.
Stocks 21.38% Below 52-week High.
Semiconductors: Marvell Technology (MRVL)
Makes chips for networking, communications and data storage. Explosive growth in 5G components.
Stocks 2.25% Below 52-week High.
Semiconductors: Qualcomm (QCOM)
The technology platform is essential for 5G networks to truly perform as advertised. Spent years developing a product and fighting some of their clients like Apple in court.
Stocks 3.73% below 52-week high.
Semiconductors: Skyworks Solutions (SWKS)
5G mobile phones need many more components that Skyworks makes than a 4G phone. Are a major supplier to Apple.
Stocks 8.43% Below 52-week High.
Semiconductors: Taiwan Semiconductor Manufacturing Company (TSMC) (TSM)
It is strategically positioned as a manufacturer for semiconductor design companies. Increased capital budget to compensate for current chip shortages.
Stocks 3.84% Below 52-week High.
Cybersecurity: CrowdStrike (CRWD)
A cloud cybersecurity provider protecting networks connected to 5G devices. Companies need scalable solutions that CrowdStrike can provide.
Stocks 7.98% Below 52-week High.
Cloud service: Fastly (FSLY)
Next generation content delivery network for digital media companies. Threat of ban for their TikTok client has diminished with new president coming to power.
Stocks 35.38% Below 52-week High.