Surging demand from several technology areas for increased speed and better connectivity amid a fast-paced, global digital transformation has been powering the growth of 5G technology. And as 5G deployment picks up speed, we believe Qorvo, Inc. (NASDAQ:QRVO) and Cirrus Logic (NASDAQ:CRUS) are now solid bets. Let’s discuss these names.The increased adoption of 5G technology in several technology areas, such as cloud computing, Internet of Things (IoT), Artificial Intelligence (AI), Virtual reality (VR), and Augmented Reality (AR) have been spurring the demand for 5G solutions globally. Currently, the industry enjoys favorable investor sentiment, as evidenced by the Vanguard Communication Services ETF’s (VOX) 67.8% returns over the past year, compared to the S&P 500’s 52.4% gains over this period.
Given the increased speed and connectivity offered by 5G, companies are increasingly investing in the development of 5G core services. Also, with consumers spending more time at home, a substantial increase in the use of phones and other connected devices should also lead to increased demand for 5G products. The global market for 5G Technology is expected to grow at a CAGR of 70.8% over the next four years to reach $700 billion by 2025.
Because 5G technology adoption is going mainstream quickly, we think it could be wise to bet now on Qorvo, Inc. (QRVO) and Cirrus Logic, Inc. (CRUS) because they are well positioned to capitalize on the trend.