With 5G technology now rolling out around the globe, the industry holds immense growth potential. However, along with some prominent tech stocks, some 5G stocks have experienced a noteworthy correction lately, with investors rotating to cyclical stocks. In the 5G space, Intel (INTC) and Ericsson (BS:ERICAs) (ERIC) hold immense growth potential, but these two stocks are trading now at significant discounts to their peers. So, we think it could be wise to bet on them right now.The 5G revolution is making its way around the globe. And with businesses increasingly adopting technology-based solutions, the 5G revolution could also play a crucial role in increasing business opportunities exponentially. That’s because this technology comes with reliability, super-fast speed, massive bandwidth, and low latency. The global 5G technology market is expected to grow at a CAGR of 70.83% from 2020 to 2025.
But despite the industry’s solid growth prospects, fears of rising inflation, rising Treasury yields and attractive opportunities to gain from cyclical stocks amid the economic recovery have led to many 5G stocks losing some value as part of the broader technology industry correction.
Consequently, two mega players in the 5G space, Intel Corporation (NASDAQ:INTC) and Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), are currently trading at significant discounts to their peers. Given their fundamental strength and ability to capitalize on the industry’s growth prospects, we think these stocks could be solid bets now.