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3 5G Stocks To Watch

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The Apple Inc (NASDAQ: AAPL) iPhone event on Tuesday brought the release of the iPhone 12, Apple’s first 5G-enabled smartphone. 

The buzz from the announcement will almost assuredly create even more excitement around other 5G companies as the technology becomes more widely available. Here are three other 5G-based companies to have on your radar. 

1. Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC

The Swedish telecom equipment provider is one of the world’s leading suppliers of hardware and software for communications companies, and one of the largest companies in Sweden (Swedish investors: köpa aktier). Based in Stockholm, Ericsson claims to be the first company to launch live commercial 5G networks on four continents.

It’s worth pointing out that Ericsson is the third-largest holding of the Defiance Next Gen Connectivity ETF (NYSE: FIVG), a 5G fund dedicated exclusively to companies with exposure to the technology. ERIC makes up 5% of the fund. 

Investors should also know that Ericsson reports Q3 earnings Oct. 21 before the opening bell. Last quarter the company reported earnings per share of $0.08 on revenue of $5.743 billion—both numbers were above analyst estimates. 

2. Qualcomm, Inc. (NASDAQ: QCOM

One of the largest semiconductor manufacturers, San Diego-based Qualcomm provides components to enable 5G-connected devices. Most notable is the Qualcomm Snapdragon, its suite of CPU products. The company is expected to release its latest version, the Snapdragon 875, by the end of the year. 

Qualcomm is also the largest weighting in the FIVG ETF, making up nearly 6.5% of the fund. Qualcomm is scheduled to report Q4 earnings on Nov. 4 after the closing bell. Last quarter the company reported earnings per share of $0.86 on revenue of $4.89 billion. Not only were both numbers above analyst estimates, but the company hasn’t reported an EPS figure below estimates since Q4 2014.

3. NXP Semiconductors NV (NASDAQ: NXPI)

Netherlands-based NXP Semiconductors is a major competitor to Qualcomm, so much so that Qualcomm tried to buy them for two years, eventually bidding as much as $44 billion before Chinese regulators said no. NXP’s product suite includes microcontrollers, RFID chips, and other semiconductor-based products. 

NXP Semiconductors has a 5.35% weighting in the FIVG ETF, making it the second-largest holding. NXPI is scheduled to report Q3 earnings on Oct. 26 after the closing bell. The company said last week they expect to see Q3 sales of $2.267 billion, above the $2 billion estimate.

 

 

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