At last month’s Apple Event, Tim Cook introduced the 5G iPhone 12.
According to InvestorPlace’s report on the event, the first 5G smartphone from Apple Inc. (NASDAQ:AAPL) “will change how we interact with the broader web.” Our writer went on to say:
It’s easy to forget that 3G download speeds in 2007 (when Apple launched the first iPhone) averaged just 0.1 Mbps, barely fast enough for music. Fast forward just over a decade. Today, 4G speeds have opened the door for not only audio but high-def video streaming, online gaming, and even online dating. It’s enabled companies like Spotify, Netflix, and TikTok to grow into multibillion-dollar businesses.
5G will take that a step further. Not only will the new technology enable faster downloads. It will also cut latency — the time it takes for a network to respond to your phone. Real-time translation, augmented reality, and other complex tasks will suddenly become possible, since 5G will allow phones to offload those tasks to more powerful offsite servers.
That’s exactly right.
However, 5G is going to do so much more than that.
To many folks, 5G is a vague concept … something that will make our smartphones operate faster and, well, it gets a little confusing after that.
So today, let’s take a look at how the 5G telecommunications sector is going to lay the ground for a whole host of new technologies.
At how valuable all those new technologies will be.
And at some of the companies that stand to benefit today …
$13.2 Trillion in Global Sales Activity
These changes won’t happen all at once, of course.
4G network speeds took almost a decade to reach current rates, and 5G wireless technologies are just getting started and will take several years to reach a saturation point.
However, that means 5G will create barely imaginable amounts of sales and launch dozens of investment winners along the way.
In fact, Qualcomm Inc. (NASDAQ:QCOM) estimates that 5G will create a whopping $13.2 trillion in global sales activity by 2035. Moreover, the technologies 5G will enable also measure their future growth prospects in the trillions of dollars.
The table below shows the five industries that stand to benefit the most.
So what is 5G, and why is it such a game-changing technology?
5G is the next generation of mobile broadband that will replace or augment existing 4G LTE connections.
5G technology drastically improves upload and download speeds, while also improving latency, which is the time it takes devices to communicate with wireless networks.
The current 4G network delivers around 100 megabits per second. But once 5G rolls out, that number jumps to 10,000 megabits per second – or 100 times faster than the current speed!
Whereas 4G provided the network speeds necessary to run online apps and mobile streaming video and audio, 5G represents a monumental leap forward.
It’s not going to just make our phones faster. 5G also provides the foundation for a whole host of “gee-whiz” technologies like:
- Autonomous vehicles.
- Healthcare technologies like telemedicine and remote robotic surgeries.
- “Smart factories” that integrate machine-learning processes with human oversight — i.e., “cobotics.”
- Internet of Things (IoT) – a vibrant, high-speed network of physical objects … things … that are embedded with sensors, software, and other technologies for the purpose of exchanging data and “communicating with” other devices, systems and/or people.
Clearly, we’re on the cusp of a 5G revolution … and this revolution will create enormous opportunities for select companies and their shareholders.
The nascent 5G boom is a powerful megatrend that will provide a wide range of investment opportunities — beginning with constructing the actual 5G infrastructure throughout the world, and then continuing with the vast range of technologies and business applications that the 5G infrastructure will enable and supercharge.
Trillions of investment dollars will flow toward and through 5G infrastructure over the next several years, no matter how well or poorly the global economy is faring.
According to research from Nokia Bell Labs, more than 70% of the world’s companies will invest in 5G technology over the next five years.
That research also revealed that one-third of companies across all regions fear being outpaced by their competition, should they not invest in 5G within the next three years.
Simply stated, 5G is the newest of the make-or-break innovations. No company or country can afford to ignore 5G or to lag behind constructing and utilizing it. This new network will quickly become the essential oxygen of the coming tech-based economy … and the dollars involved will be astronomical.
The Technochasm’s Biggest Booster
In other words, 5G is powering the future of the tech economy … expecting investments from an overwhelming majority of the world’s companies … and instilling fear of falling behind in some firms.
That sounds like a sector on the right side of the Technochasm that Louis and I talked about Thursday night.
So, it won’t surprise you to know that of the 11 stocks we talked about last night, five are directly connected to the 5G boom — the tech that will separate the stock market winners from the losers.
And that includes our No. 1 hypergrowth stock pick.
If you weren’t able to join Louis and I on Thursday night — or if you just want to check out our summit again — you can check out the replay now to get the details … and to get our free stock pick.
On the date of publication, Eric Fry did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends … before they take off. And when it comes to bear markets, you’ll want to have his “blueprint” in hand before stocks go south.