Why This 1 Stock Might Be The Best Way To Play The 5G Rollout In The Near Term

Apple just released its 5G-capable iPhones, ushering in the next-generation of smartphones. And this under-the-radar stock may be the best way to play the 5G rollout and Apple’s iPhone sales super cycle.

Apple (NASDAQ: AAPL) debuted its newest iPhones on October 14, complete with 5G speeds and capabilities, ushering in the next generation of 5G-capable smartphones.

But while the new iPhones may spark a super cycle of phone sales for Apple, which will send the stock higher, one trader says there’s a better way to play the rollout.

TradingAnalysis.com founder Todd Gordon said this week that Qualcomm (NASDAQ: QCOM) may be a better way to profit on 5G iPhones in the near term. 

Apple signed on to continue buying chips from Qualcomm last year after a major royalty settlement, putting the semiconductor chip maker’s products in the lates iPhones.

Qualcomm’s RAN products support several bands of 5G, including millimeter wave connections that require more base stations and have a fairly short range, as well as the slower sub-6 millimeter flavor that can be broadcast over wide regions.

“5G enables a very large expansion of the Qualcomm addressable market, because 5G is going everywhere. It’s going to automotive, it’s going everywhere,” said Qualcomm President Cristiano Amon. “The networking aspects of 5G comes with that transition. It’s a very small incremental investment and it creates an expansion of the Qualcomm addressable market.”

And from a technical perspective, Gordon says Qualcomm looks strong.

“We have a very, very nice uptrend here in Qualcomm,” Gordon said, noting that the stock recently retested a key area of support at around $125. “We should be able to move up” from there, he added. 

Qualcomm shares gained 4% on Thursday to close at $126.44, setting the stock up to continue to climb.

Source: TradingView.

What’s also encouraging is Qualcomm’s performance relative to Apple.

Gordon pointed out that during recent declines, Apple’s losses were more in line with the broader market while Qualcomm shares “created a little bit of a divergence” and held strong.

“We’re really seeing some relative strength in Qualcomm to Apple,” Gordon said. “I take that as a bullish sign here. I will likely be adding Qualcomm.”

Qualcomm will report earnings for its latest quarter on November 5. Analysts are anticipating earnings per share of at least $1.18, and Qualcomm historically delivers earnings beats. 

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Food Product Stocks To Buy Now

    The Chefs’ Warehouse, Inc. (CHEF) The Chefs’ Warehouse, Inc. is a premier distributor of specialty food products, serving high-end restaurants, hotels, and gourmet food stores across the United States and... Read More

  • 3 HVAC Stocks To Buy Now

    Featured Content Lennox International Inc. (LII) Lennox International Inc. is a global leader in energy-efficient climate control solutions, specializing in heating, ventilation, air conditioning, and refrigeration (HVACR) products. The company... Read More

  • 3 Hotel Stocks To Buy Now

    Featured Content Hyatt Hotels Corporation (H) Hyatt Hotels Corporation operates a global portfolio of luxury, full-service, and lifestyle hotels, as well as vacation properties. Known for its premium hospitality offerings,... Read More

  • 3 Tobacco Stocks To Buy Now

    Featured Content Turning Point Brands, Inc. (TPB) Turning Point Brands, Inc. is a consumer products company that manufactures and markets tobacco products and alternative smoking accessories. The company’s portfolio includes... Read More

  • 3 Life Insurance Stocks To Buy Now

    Featured Content F&G Annuities & Life, Inc. (FG) F&G Annuities & Life, Inc. specializes in annuities and life insurance products designed to meet the long-term financial planning needs of clients.... Read More

  • 3 Soft Beverage Stocks To Buy Now

    Featured Content Westrock Coffee Company (WEST) Westrock Coffee Company is a leading integrated coffee, tea, and extract service provider, offering comprehensive solutions from sourcing and roasting to packaging and distribution.... Read More

  • 3 Medical Info System Stocks To Buy Now

    Featured Content Clover Health Investments, Corp. (CLOV) Clover Health Investments, Corp. is a healthcare technology company focused on improving health outcomes for America’s seniors. The company offers Medicare Advantage plans... Read More

  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More

  • 3 Silver Stocks To Buy Now

    Featured Content Gatos Silver, Inc. (GATO) Gatos Silver, Inc. is a precious metals mining company primarily focused on silver and zinc production. Its flagship Cerro Los Gatos mine in Mexico... Read More

  • 3 Metal Production Stocks To Buy Now

    Featured Content Century Aluminum Company (CENX) Century Aluminum Company is a primary aluminum producer, with operations that include the production of high-purity, low-carbon aluminum used in automotive, aerospace, and industrial... Read More