Table of Contents
5G Technology is identified as a key growth driver for 2023 and in the next five (5) years. And according to a report by Allied Market Research, “the global 5g technology market is anticipated to be at $5.53 billion in 2020 and is projected to reach $667.90 billion by 2026, registering a CAGR of 122.3% from 2021 to 2026”.
You can capitalize on this projected growth by investing in 5G stocks. And there are more promising opportunities for massive growth by investing in 5G penny stocks.
2023 is the year for 5G to truly start taking off and stocks with a great degree of exposure to 5G are most likely to take off in the consumer tech sector over the next few years.
The first beneficiaries of the 5G wave are most likely 5G infrastructure stocks and at the other end are companies that will use 5G to massively improve their offerings technologically.
Update: Since publishing this article back in March 2020, most of the stocks listed have gone ahead to produce impressive returns, nonetheless, the article is continuously kept up to date. And if you’re looking for something other than 5G penny stocks plays, check out the best 5g stocks for the long term. When considering one of the stocks below, ensure you enter at a price you consider ‘low’, because cheap stocks, like listed below, are volatile especially in this crazy market.
If you are interested in investing in 5G Technology Companies, here are cheap 5G penny stocks under $10 and $5 to consider:
1. Nokia Corporation
Nokia (NYSE: NOK) is a major player in the global 5G infrastructure space, and its stock currently trades under $10.
The company engages in the provision of network infrastructure, technology, and software services. It has secured 145 commercial 5G deals and its 5G Infrastructure technology is currently being deployed live by 55 Network Operators worldwide.
Nokia is expected to benefit from the trade tension between the US and China, as many countries have banned the use of network equipment from Huawei, a Chinese Telecommunication powerhouse and the leader in the 5G infrastructure market.
Recently, the company is realizing this potential, capitalizing on the non-participation of Huawei in the 5g infrastructure market and has won 5G some contract bids in China.
Its latest quarterly reportsrt offers long-term promise. Having won a five-year deal to supply network equipment to T-Mobile, a major US Network Operator.
Sentiment around the NOK stock will be favorable over the next few years, in spite of the CEO’s uninspiring 2022 guidance.
However, the CEO noted that the company will be forced to sacrifice short-term margins to make more 5G Research and Development investments while maintaining market share. And this will help the company long-term, as they could potentially have superior 5g network infrastructure tech.
At less than $10, the company is a cheap long-term 5G play that could pay off massively.
2. ASE Technology Holding Co., Ltd.
ASE Technology Holding Co., Ltd. (NYSE: ASX) is one of the companies that are set to potentially benefit from the global shortage of chips and 5G in 2022, and it currently trades under $10. As expected, the shortage of chips is going to increase the demand for chip makers’ products, especially in the US and EU.
The company provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally.
Moreover, the company’s wide range of semiconductor packages is used in 5G Network towers and 5G electronic devices. And as such, it is one of the companies expected to benefit from the 5G boom.
Its P/E ratio is under 20 and it has a stock price that’s under 10, and a pays 4% dividend, all of which makes it a relatively cheap 5G semiconductor penny stock.
3. ADDvantage Technologies Group Inc.
With many network operators upgrading their 4G technology to 5G tech, ADDvantage Technologies Group (NASDAQ: AEY) is one of the companies expected to see significant revenue and potentially, earnings growth.
The company engages in the installation and upgrade of technology on communication towers and small cell sites for wireless carriers, national integrators, tower owners, and major equipment manufacturers.
It also engages in the construction of new small cells for 5G and offers telecommunication networking equipment.
AEY is a micro-cap stock with a market cap of under $25M.
4. Communications Systems Inc.
Communications Systems, Inc. (NASDAQ: JCS) has been in the communication (connectivity) business since 1969, and although it’s a figment of its former self, it is still in the game. The company takes a niche approach today, primarily focusing on the manufacturing and distribution of connectivity infrastructure products and services for voice, data, and video connections.
JCS is a micro-cap stock that has a market cap of under $30 million over the past few months. It pays a dividend yield of 3% annually.
5G is expected to radically transform the development and adoption of the Internet of Things (IoT), and one doesn’t need a soothsayer to know that because of 5G technology there will be much more IoT devices in demand.
The demand for IoT devices will in turn increase demand for IoT connectivity solutions and JCS should be able and is expected to capitalize on the 5G boom to sell and offer more connectivity products and services to its wide range of customers.
5. Wireless Telecom Group, Inc.
Wireless Telecom Group, Inc. (NYSE: WTT) engages in the design and manufacture of radiofrequency and microwave devices used in wireless communication networks. The company has a stock price that is currently under $5 and is a player in the 5G mobile network space with specialized expertise in the development of specialized 5G radio access network solutions.
When it comes to the broader 5G market that was worth around $46.61 billion in 2021, Wireless Telecom is a niche player that provides its 5G hardware and software solutions for industrial private network deployments, building transportation solutions, and 5G testbeds, amongst other niche applications.
5G niche players are expected to benefit massively as many niche applications that were not realistic in other generations will become a reality with 5G. In spite of the pandemic, 5G networks are springing up progressively, and Wireless Telecom Group should be one of the companies benefiting from this trend.
The company has demonstrated that its technology is up to the 3GPP standards for 5G New Radio (NR), Release 15, and this proves that they could compete technologically for a piece of the 5G niche pie.
With a market cap that has floated around $50M lately, the company’s stock is a micro-cap 5G stock with promising upsides.
6. Wipro Limited
Wipro Limited is a multinational information technology headquartered in India. It has products and services targeted to different IT spaces from network management to IT consulting and design.
The company has over 180,000 employees spread across six continents dedicated to providing clients with products and services that will help them adapt to the technological changes of the digital world.
Wipro has been in the IT business for decades, going all the way back to the 1980s. However, the company which was found as “Western India Palm Refined Oil Limited” and later abbreviated to “Wipro”, started as a manufacturer of refined oils. And since the transition into an IT company, the company has largely stayed so.
Today, It serves customers in various industry verticals with its wide range of IT products and services primarily in the Indian market. Customers in verticals such as banking, financial services, and insurance; health business; consumer business; energy, natural resources, and utilities; manufacturing; technology; and communications; and even government/defense departments.
In 2020, the company launched its 5G edge services solutions suite which was targeted at 5G tower companies, telecom operators, cell site infrastructure providers, and enterprises. The suite comprises offerings such as EdgeCent, Digital Design Studio, BoundaryLess Universal Edge platform – BLUE, and Tririga.
Wipro’s stock that trades in the New York Stock Exchange as WIT, has a stock price under $10, with its exposure to 5G and the IT space in general, it is expected to benefit directly and indirectly from the 5G boom. The company has a market cap of over $30 billion.
7. VEON Ltd
VEON Ltd. (NASDAQ: VEON) through its subsidiaries, provides wireless connectivity and internet services in Russia, Pakistan, Ukraine, Kazakhstan, Georgia, Kyrgyzstan, Algeria, Bangladesh, and Uzbekistan. It offers voice and data telecommunication services through a range of mobile and fixed-line technologies to over 200 million customers.
The company provides these services through five of its brands Beeline, Kyivstar, Jazz, Djezzy, and banglalink.
In 2019, the company through one of its joint-venture, KaR-Tel, which operates under the Beeline brand, launched a large-scale 5G network trial in Kazakhstan as part of its efforts to develop a viable 5G ecosystem in Kazakhstan and Central Asia. VEON is currently developing its 5G ecosystem in partnership with Nokia.
The company focuses more on growing its 4G network than deploying 5G at the moment. Based on its Q3 2020 report, it had just reached 50% 4G penetration in Kazakhstan which has driven double-digit revenue growth for the company.
It’s clear to see that VEON is not a 5G play for the now, however, it is a long-term 5G play. Understandably, 5G will not be deployed at the same time across the globe, the most advanced countries will adopt 5G technology years before it gets to less advanced countries, like the Central Asian countries VEON serves.
VEON’s stock price trades under $5 and has a market cap around $3 billion.
8. Sequans Communications S.A.
Sequans Communications S.A. develops and provides 5G and 4G chips and modules for massive, broadband, and critical Internet of Things (IoT) markets.
For 5G/4G massive IoT applications, the company provides a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities, and deployment capability.
For 5G/4G broadband and critical IoT applications, Sequans Communications S.A. offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms optimized for residential, enterprise, and industrial applications.
SQNS has been relatively cheap and would be a good pick for investors that are looking for growth and avoidance of excessive risks in their portfolio. It has a market cap that hovers over $140 million over the past couple of months, it’s a small-cap company that plays a leading role in providing critical chips and modules for 4G and 5G market.
Henry John is a Stock Portfolio Manager that focuses on companies developing cutting-edge technologies.
Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
I’m a self-made millionaire who made most of his money investing in technology companies while working in finance.
Yes! I owe it all to tech and finance.