5 Best 5G Stocks to Buy in December 2021

The transition towards 5G is among the most interesting pivots that we are witnessing. The shift towards 5G would hasten the pace of digital transformation. There are several companies that would benefit from the transition. Here are five such names that look good buys in December 2021.

1. Marvell (NYSE: MRVL)

Chipmakers like Marvell are among the companies that benefit from the 5G transition. Earlier this month, MRVL announced a collaboration with OE Solutions to deliver the first production-ready 100G QSFP-DD optical modules which are optimized for 5G backhaul and Metro Access applications. Commenting on the deal, Samuel Liu, Marvell’s Sr. Director Product Line Management said “Marvell’s innovative Deneb coherent DSP enables new opportunities in the 100G access transport market and expands our industry-leading 5G RAN portfolio offering to address growing carrier infrastructure needs.”

Rosenblatt finds MRVL a good 5G stock

Analyst Hans Mosesmann of Rosenblatt Securities is bullish on MRVL stock and raised their target price from $100 to $120. Calling MRVL a top “secular idea” Mosesmann said, “the company sees a step up and incremental revenue from cloud optimized silicon design wins, the ramp of 5G and increased dollar content, the increase in revenue of Automotive Ethernet conductivity, and the ramp of PAM4 [pulse amplitude modulation with four levels] and ZR products to support strong revenue growth.”

Overall, if you are looking to get exposure to the 5G ecosystem, MRVL is one stock that should be on your radar.

68% of all retail investor accounts lose money when trading CFDs with this provider.

2. Nokia (NYSE: NOK)

Nokia is among the best 5G stocks. The stock has fallen sharply from the peaks that it hit during the Reddit frenzy but is still up over 62% for the year. The company has been trying to regain market share in the 5G market. Its efforts have been aided by the geopolitical environment where a lot of companies have been wary of inviting Chinese companies for the 5G telecom gear. Several countries have already barred Chinese companies from the 5G infrastructure and many others including India are expected to follow suit.

In 2021, Nokia is targeting a 4G/5G market share between 25-27% globally, excluding China. It is projecting comparable operating margins between 10-12% while it expects to be positive on the free cash flows also during the year.

Nokia is a good stock to play the 5G infrastructure rollout

Looking at the long-term picture, Nokia expects its revenues to grow faster than the market in 2023 and expects comparable operating margins to be between 10-13% in the year. All said, given the global 5G rollout and the prevailing geopolitical developments, Nokia looks among the best 5G stocks to buy in December 2021. The stock looks reasonably valued also with an NTM PE multiple of 16.5x.

68% of all retail investor accounts lose money when trading CFDs with this provider.

3. Analog Devices (NYSE: ADI)

Analog Devices is a semiconductor company and has a leading position in the design and manufacturing of analog, mixed-signal, and DSP integrated circuits. The pivot towards 5G is a major long-term driver for ADI stock and the total addressable market for the company would be almost four times in the 5G ecosystem as compared to the 4G ecosystem.

Wall Street analysts are also bullish on the stock and it has 21 buys and 6 hold ratings. It carries a median target price of $210 which is a 20.4% premium over current prices. The stock even trades 6.1% below the street low target price of $185 while the street high target price of $245 implies an upside of 40.5% over current prices.

68% of all retail investor accounts lose money when trading CFDs with this provider.

4. Qorvo (NYSE: QRVO)

Qorvo stock has underperformed the markets by a wide margin in 2021. It is trading with a YTD loss of almost 5% while the S&P 500 is up 27% over the period. However, the stock could bounce back in 2022 as the market sentiments improve. The company designs and manufacturers radio frequency integrated circuits for wireless communications applications. The company’s chips are used by top OEMs like Apple, Samsung, and Xiaomi. As the sales of 5G handsets soar for these OEMs, so would the revenues for Qorvo.

Qorvo supplies to several 5G handset makers

The stock tumbled after it said that the earnings in the fiscal third quarter are expected to decline sequentially amid the supply chain issues. However, it said that its revenues in the full fiscal year 2022 are expected to rise 15%. Consensus estimates call for a topline growth of 9.3% and 7.7% in the next two fiscal years.

The stock trades at an NTM PE multiple of 13x which is lower than its long-term averages. Wall Street analysts have a consensus buy rating on the stock and its consensus target price of $209 is a 33.6% upside over current prices.

68% of all retail investor accounts lose money when trading CFDs with this provider.

5. Apple (NYSE: AAPL)

The 5G transformation is also leading to a smartphone supercycle and Apple is among the major beneficiaries. The stock has bounced back and is now the second-best performing FAANG stock of the year, with its market cap flirting with the $3 trillion level. While Apple’s current valuations are higher than historical averages, the stock has seen a valuation multiple rerating amid the pivot towards high margins services business.

Apple is benefiting from the 5G supercycle

Several brokerages have been turning bullish on Apple stock and recently Citi highlighted five reasons why it believes the stock can outperform. Firstly, the brokerage is bullish on the upcoming AR/VR sets which it expects would cost between $750-$1,000 each.

Citi also expects more fund flows into Apple stock as investors seek the safety of strong companies. Citi analyst Jim Siva expects Apple to announce another major buyback in 2022 and also increase its dividend by 10%. He also expects Apple’s topline growth to support the stock price. Finally, Siva believes that news flow over Apple’s rumored electric car would keep the stock buoyant.

Along with 5G, Apple is a play on multiple themes including the digital transformation and electric cars. It is among those stocks where Wall Street analysts, WallStreetBets members, as well as the legendary Warren Buffett have a bullish opinion.

Buy AAPL Stock at eToro from just $50 Now!