According to recent media reports, five US semiconductor companies will benefit the most as telecom operators compete to accelerate the deployment of the fifth-generation wireless communication technology (5G) network. On Wednesday, local financial media commentator Jim Kramer of CNBC said that 5G-related semiconductor companies have become the focus of attention. Apple’s supplier Skyworks Solutions has soared more than 12% in one day after releasing its quarterly earnings report.
When Kramer hosted the CNBC channel program, Skyworks Solutions‘ share price rose so strongly that it led to a collective rise in the share prices of other 5G-related chip makers including Intel, Qualcomm, Broadcom, and Xilinx. (Xilinx). He said that he prefers the company’s stock to Skyworks Solutions’ competitors because of lower stock prices and the company’s focus on 5G. Although the company’s earnings performance is not impressive, the company recognizes the 5G development prospects and turns its attention to 5G. “The transition to 5G” will be a “great catalyst” for social development, and the connected equipment needed for this major transformation will be inseparable from the chips provided by Skyworks Solutions.
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Kramer said, “It is no wonder that Goldman Sachs raised its share price forecast today. It expects the company’s share price to bottom out in the first quarter and argues that investing in the company’s risk-reward is too attractive to ignore. This is a bold Judgment. For me, this makes sense.”
Kramer said that people tend to think of Intel as a personal computer business, but it should be noted that through years of diversification efforts, the company has now participated in the fields of autonomous driving, Internet of Things and communications. Kramer explained, “At present, Intel has experienced delayed product launches, which makes the company’s latest performance and expectations undoubtedly bad. However, as investors expect the semiconductor industry stock price to bottom out, Intel’s share price has now rebounded. The transaction level before the release of the quarterly earnings report.”
5G technology is inseparable from communication technology giant, Qualcomm. Qualcomm president believes that almost all 5G mobile devices launched in 2019 will be embedded in Qualcomm’s 5G technology. Kramer said, “If Qualcomm’s 5G business is an independent company, then it will be a clear winner of the business.” But he acknowledged that Qualcomm and its largest customer Apple’s ongoing intellectual property disputes have caused Qualcomm’s share price to face pressure recently.
Broadcom is another 5G-related semiconductor company. It is not a company that is purely dedicated to 5G technology. Its business is huge and messy. But he said that Broadcom’s CEO, Hock Tan, is an outstanding CEO who has been buying back his company’s stock, and Broadcom’s stock is worthy of investors.
Xilinx is a provider of complete programmable logic solutions that develop, manufacture and market a broad range of advanced integrated circuits and software design tools. The company recently released an excellent quarterly earnings report, thanks in large part to the company’s efforts to 5G.
Kramer said that investors who bet on the stocks of telecom operators should not forget the chip makers that provide technology to the telecommunications industry. The 5G construction has already arrived, and these chip manufacturers will benefit.