The year 2023 witnessed a temporary slowdown in the telecom industry and its hardware providers, following extensive investments in 2021 and 2022. Despite this dip, the focus on online work, learning, and commerce continues to grow, especially in emerging markets. In this article, we explore three key players set to capitalize on this digital shift.
Qualcomm: Pioneering 6G Technology
While the world is still rolling out 5G, Qualcomm (NASDAQ:QCOM) is already pioneering the path to 6G deployment by 2030. As a long-time innovator in the communication chip industry, Qualcomm has built its reputation on developing and licensing 3G and 4G technology to telecom companies and smartphone manufacturers. Beyond 5G, Qualcomm leads in AI-enabled chip development for mobile applications, unlocking the potential of AI for phones, connected cars, and more.
Corning: Fuelling 5G Growth with Fiber-Optics
Contrary to popular belief, 5G data transmission still relies on fiber-optic cables before reaching end-users via towers. Corning (NYSE:GLW), a specialist in glass and ceramics, is well-positioned to benefit from the increasing demand for fiber-optics. In addition to its core business, Corning has embraced the 5G market with its SpiderCloud small cell Enterprise Radio Access Network (E-RAN), enabling businesses to deploy on-premise 5G networks efficiently. With a reasonable stock price and a generous dividend yield, GLW offers investors a cost-effective gateway to 5G growth.
American Tower: Owning the Infrastructure of Connectivity
To profit from the expansion of 5G, consider owning the facilities themselves. American Tower (NYSE:AMT) stands out as the leading real estate investment trust (REIT) focused on data centers and towers worldwide. With over 220,000 cell phone towers globally, including 40,000 in the United States, AMT generates significant revenue. Moreover, its presence in emerging markets like Brazil and India positions it for growth as internet usage and spending power rise. The recent acquisition in data centers further solidifies its role in the communications market. As mobile data demand continues to surge, American Tower’s size and access to capital give it a competitive edge to capture more revenue.
In a rapidly evolving digital landscape, these three companies, Qualcomm, Corning, and American Tower, remain at the forefront of 5G innovation and are already paving the way for the exciting era of 6G connectivity. Don’t miss out on their journey towards the future of connectivity.