The continuing digital transformation of almost all industries and heightened demand for efficient cloud-based services have been boosting demand for 5G technology. With the increasing demand for higher bandwidth, lower latency, quicker download speed, and network slicing, 5G technology is gaining importance.
The global 5G technology market is expected to grow at an 82.4% CAGR to$248.46 billion by 2028. The increasing demand for improved network performance and reliability should drive the growth of the 5G technology market. Fifth generation technology is expected to play a key role worldwide in creating smart cities.
Therefore, we think fundamentally sound 5G stocks Qualcomm Incorporated (QCOM – Get Rating), Nokia Corporation (NOK – Get Rating), Qorvo, Inc. (QRVO – Get Rating), and Ciena Corporation (CIEN – Get Rating) could be ideal bets now.
QCOM, in San Diego, Calif., is a multinational semiconductor and telecommunications equipment company that develops and delivers products and services based on code-division multiple access (CDMA) technology used in digital wireless communications equipment and satellite ground stations.
On October 5, 2021, QCOM, together with ecosystem leaders spanning key platforms and OEMs, collaborated with Microsoft Corporation (MSFT) to redefine wireless expectations for latency-sensitive gaming, productivity, and learning applications on Windows 11 PCs with Qualcomm FastConnect systems. Also, QCOM and SSW Partners, a New York-based investment partnership, reached a definitive agreement to acquire Veoneer, Inc. (VNE) in a $4.5 billion, all-cash transaction. Having already demonstrated a successful collaboration with VNE’s Arriver business, integrating Arriver’s assets should accelerate QCOM’s ability to deliver a leading and horizontal ADAS solution as part of its digital chassis platform.
For its fiscal third quarter, ended June 27, 2021, QCOM’s non-GAAP revenue increased 63.5% year-over-year to $8 billion. The company’s non-GAAP operating income has been reported at $2.67 billion, representing a 117.9% year-over-year improvement. QCOM’s non-GAAP net income came in at $2.20 billion, up 124% from the prior-year period. Its non-GAAP EPS increased 123.3% year-over-year to $1.92. The company had $7.40 billion in cash and cash equivalents as of June 27, 2021.
QCOM’s EPS is estimated to rise 97.1% year-over-year to $31.85 in the current year. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Analysts expect its revenue to be $33.01 billion for the current year, representing a 52.5% rise year-over-year. The stock’s EPS is expected to grow at a 32.2% rate per annum over the next five years. Over the past year, the stock has…
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