Semiconductor stocks to buy as 5G demand rises: Bank of America
A shopper walks past an advertisement for the Apple iPhone 12 outside a store in Hong Kong on May 24, 2021.
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Several “top” semiconductor stocks should benefit from this Bank of America highlighted as a key reopening theme: 5G.
Semiconductors, or chips, are essential components of smartphones and are also part of the infrastructure needed for 5G technology – the next generation of mobile internet offering super-fast download and upload speeds.
“5G could be the ultimate ‘reopening’ theme, as consumers venture out and demand faster cellular broadband coverage and capacity compared to last year’s addiction to Wi-Fi,” said wrote the bank analyst, led by Vivek Arya, in a note released Wednesday. Only around 20% of smartphones had 5G technology last year, but that figure is expected to rise to 40% in 2021, the bank estimated.
Given this environment, Bank of America’s top semiconductor stock choices include: