2 Cheap Chip Stocks to Cash in on 5G Networks

New 5G mobile networks are coming. The first commercially available service launched in late 2018, setting off a race to build out infrastructure and gain new network supremacy among mobile companies. Research group IDC predicts that worldwide 5G infrastructure and related hardware spending will increase at an average annual compound rate of 118% between 2018 and the end of 2022, coming in at $26 billion in 2022 — up significantly from $528 million in 2018.

That’s a huge potential wave for investors to ride, and one of the best means of cashing in could be the companies that help build the hardware itself. Two such companies are Skyworks Solutions (NASDAQ:SWKS) and NXP Semiconductor (NASDAQ:NXPI) — both trading for reasonable price tags given the opportunity that lies ahead…

All about connectivity

Mobile connectivity specialist Skyworks Solutions hasn’t had the best of times the last couple years. A flagging smartphone market sent revenues tumbling 8% during the company’s fiscal 2019 first quarter, with another 10% year-over-year decline expected in the second quarter. As a result, the stock has fallen 15% as of this writing since the start of 2018.

The sliding sales should be a temporary situation, though. Management has said the outlook for later in 2019 is beginning to look much better, and 5G connectivity holds big potential. A slew of new product releases have been announced in recent months, including its new Sky5 chip platform for mobile devices, use of its connectivity chips to power new 5G mobile hotspot technology, and a partnership with Intel to develop modem-to-antenna solutions for new mobile networks.

It isn’t just talk either. Skyworks management is backing up its…

Continue reading at THE MOTLEY FOOL

Leave a Reply

Your email address will not be published.