Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

This Stock Will Drive America’s 5G Buildout

Companies / Mobile Technology Dec 17, 2018 - 04:50 PM GMT

By: Stephen_McBride

Companies

Who sells the basics? That’s the first question I answer when evaluating an investment trend.

In markets, those who sell the basics get rich.

James Marshall was the first guy to pull a gold nugget out of the mud during the 1848 gold rush. James literally struck gold. And yet, he left California broke.


You know who got fabulously wealthy, though? Those who sold the basic tools needed to find and extract the gold.

But here’s the catch.

Investing in “who sells the basics” requires you to buy stocks that will never make the front page of The Wall Street Journal.

For example, Google (GOOG) is famous for turning the search engine into a $120-billion-a-year business. Along the way, it handed investors 1,900% gains.

But without keyboards, mice, and screens, the search engine wouldn’t have taken off.

Logitech (LOGI) is a leading maker of this “basic” equipment. Over the past five years, its stock has more than doubled Google’s performance:



But while the search disruption is over, there are other three technologies that are set to disrupt the market in the next decade. Each with its own equivalent of Google (GOOG) and Logitech (LOGI).

One of them is…

The 5G Revolution

I talked about the lightning-fast Fifth Generation Wireless Technology (5G) recently.

I also made an in-depth analysis of this technology in my Great Disruptors report. My research shows that 5G could be one of the biggest disruptions of the next decade.

In short, 5G is the new wireless network all our phones and computers will soon run on.

It will be superfast—with speeds up to 20 gigabytes per second. That’s 1,000x faster than what we have today.

It’s important to understand that 5G isn’t a small improvement. It’s a huge leap that will enable world-changing disruptions like self-driving cars and remote surgery.

Launching 5G will require the biggest overhaul of America’s wireless networks ever. According to the GSM Association—which represents 800 of the world’s largest mobile operators—it’ll cost roughly half a trillion dollars to build out the necessary infrastructure!

Millions Will Flow into the Basics that Enable 5G

Superfast speeds are a key benefit of 5G.

But just as important is the huge improvement in the amount of data that can run through a 5G network.

Think about a cell network like a highway. The more lanes it has, the more traffic it can handle.

5G is going to widen the wireless “highway” by around 100x from what we have today. This is crucial because new technologies will require far more data than current 4G networks can handle.

For example, according to Intel (INTC), a single self-driving car uses roughly 4,000 GB a day. That’s like downloading 1,000 HD movies a day—per car!

Secret Weapon for Getting America 5G Ready

To expand 5G’s “highway,” network providers like Sprint (S) and AT&T (T) are using something called Multiple Input, Multiple Output—or MIMO.

Sprint Chief Technology Officer John Saw calls it “our secret weapon to getting 5G built.”

Each antenna acts like a new highway lane, allowing the network to handle more traffic. Using MIMO, Sprint increased 5G’s capacity by 300%.

Demand for MIMO is expected to explode by 1,500% over the next eight years, according to ResearchandMarkets.com.

Computer Chip Maker Xilinx (XLNX) Builds the “Brain” of These MIMO Boxes

Computer chips are the “brains” of electronic devices like smartphones and computers.

Xilinx is the leading maker of a type of chip called field-programmable gate array (FPGA). Think of these chips as powerful blank canvases that can be used for many different tasks.

For example, Amazon (AMZN) and Google use Xilinx’s chips in their giant data centers. The US Air Force uses them for its drones.

The key advantage of Xilinx chips is they are adjustable. You can change them to perform a brand-new task, or optimize an existing one.

Most other chips are built for a specific purpose and aren’t adjustable.

This gives Xilinx a huge competitive advantage for 5G.

Network providers like Sprint, AT&T, and Verizon (VZ) are figuring out how 5G works as they build it. For the most part, industry standards haven’t been set. Things are constantly changing… which requires the equipment to change along with it.

Several wireless carriers in America and South Korea are already using Xilinx’s chips in their 5G rollouts.

Using Xilinx chips, one carrier was able to slash the energy use of its MIMO boxes in half. It also reduced the number of chips inside each from 24 to 4.

Xilinx Is Already Profiting from the 5G Buildout

It charges roughly $40,000 for each chip inside a MIMO box.

Last quarter, sales from this business line jumped 33% to $260 million—thanks mostly to the early 5G rollouts in America and South Korea I mentioned.

Xilinx is a profitable, well-run business. Over the past year, its profits soared 24% to an all-time high.

And not only are its margins at record highs—they’re 3x better than the industry average.

Disruptive companies must hit a delicate balance between growth and profitability. To achieve record highs in both at the same time is impressive.

Xilinx is trading at $87 today. My research suggests the stock could hit $130 in the next 12 months as it starts collecting bigger checks from the 5G buildout.

I’ve said it before and I’ll say it again: “The Great Upgrade” to 5G is one of the three greatest booms in American history.

Best of all, it’s just getting started. We’re in the initial infrastructure buildout phase. Now’s the time to get in early on companies that “build the basics” to bring 5G to all of America.

By Stephen McBride

http://www.riskhedge.com

© 2018 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules