Email

This One Chipmaker Was Ahead of the 5G Curve – And It Can Hand You A Stake In A $1.4 Trillion Buildout

0 | By Michael A. Robinson

If ever there was a time to heed Rule No. 2 of my five-part system for building tech wealth, it’s right now.

After all, that rule states to “separate the signal from the noise.”

Here’s the thing. I have decades of experience with the markets and I have never seen so much economic uncertainty.

See, in the U.S. coming off coronavirus lockdowns varies not just by states but often by individual cities and counties. Something similar is occurring all around the world, making recovery forecasts difficult.

Meantime, you have some health experts and aggressive government officials suggesting lockdowns should continue until we find a Covid-19 vaccine.

Like I said, a lot of economic noise out there.

But fortunately, I have found a great tech leader that embodies Rule No. 2 – and I mean that quite literally. It’s a firm with a pole position in the 5G wireless race.

Let me show you how the firm will target a buildout that will cost $1.4 trillion and how you can profit from it all…

Next-Gen Connections

Now then, I have to say I’ve probably been following high-speed 5G as long as any analyst out there. Indeed, I know for a fact that I began writing about the next-gen breakthrough in cellular communication in July 2014.

At that time, 4G reigned supreme. But even then, I grasped that the future belongs to 5G.

I say that because, with 5G, wireless is changing completely. Yes, data is going to get 10 times faster, meaning better quality video, faster map downloads, and so on.

But 5G is going to do so much more than that. For one, it greatly increases the number of wireless connections that can be active at once, boosting network efficiency and traffic capacity by 100 times. That means no slowdowns or dropped connections in crowded places like stadiums, airports, hospitals, and other places where 4G struggles.

Not to mention that this extra bandwidth will enable practically everything to be connected to the Internet, creating the Internet of Things.

Perhaps the biggest game-changer will be the tenfold drop in latency between you sending a signal and the signal reaching its destination.

Lower latency means you can say goodbye to awkward delays when video chatting with family or friends – and say hello to practically instantaneous AI assistants, self-driving cars that can communicate with each other, and seamless cloud storage.

Getting Ahead of the Transformation

So, I have to tell you how impressed I was when I recently read that the CEO of QUALCOMM Inc. (NASDAQ: QCOM) told his employees “not to be distracted by the noise” out there.

His name is Steve Mollenkopf. He grew up in Baltimore and studied to be an electrical engineer. He moved to San Diego to work for Qualcomm straight out of grad school.

The firm was founded by electrical engineers, so he fit right in. Qualcomm had built its reputation on developing revolutionary wireless standards. Later, it began building the required chipsets for phones when it turned out that no one else could.

Mollenkopf spent much of this time at Qualcomm on precisely those projects that weren’t an immediate priority but would turn out to pay off in spades later.

For example, Mollenkopf and his teams pushed the company into wideband technologies used overseas, turning Qualcomm into the leading global wireless tech provider.

He’s also pushed Qualcomm to integrate its wireless modems with processors on a single chip. The result is the Snapdragon chipset that is used in one-third of all smartphones sold globally – more than any competitor.

And by pushing for the adoption of LTE and overseeing the $3.1 billion acquisition of Atheros, Mollenkopf is largely responsible for making Qualcomm the largest mobile chipset supplier on the planet just as 4G was launching.

Since becoming CEO in March 2014, he’s consistently emphasized to his employees that the priority is to become a leader in 5G. That’s why Qualcomm managed to release its first 5G chip in 2019, a year ahead of schedule.

That success pushed Apple Inc. (NASDAQ: AAPL) to drop its deal for wireless modems with Intel Corp. (NASDAQ: INTC), settle lawsuits with Qualcomm, and start buying Qualcomm’s 5G modems for the next generation of iPhones – a huge win.

Pushing Through the Crisis

But for Mollenkopf, smartphones are just the beginning. As he told Investor’s Business Daily, “I think people will be surprised at the degree to which 5G will disrupt markets beyond cellular. Every big industry will be impacted, from health care and automotive to logistics, and we will be aggressively expanding the funnel of demand for our services.”

That’s exactly why I’ve been following 5G so intently since 2014. The possibilities are almost endless, and Mollenkopf is capitalizing on as many of them as possible.

Under his direction, Qualcomm is bringing its 5G chipsets and technology to cars, healthcare, manufacturing, the cloud, and so on.

The firm has 140,000 relevant patents, so competitors will find it very difficult to mimic this strategy.

Of course, with the global COVID recession, the full-scale rollout of 5G may be delayed by a quarter or two. But there’s no stopping it. If anything, the lockdowns have pushed demand for better wireless technology higher. Just here in the U.S., wireless data use is up 60%, teleconferencing is up 300%, and the number of people working from home is up 850%.

Pandemic or not, Mollenkopf’s strategy is working. On April 29, Qualcomm released its latest earnings report. And despite a 21% drop in demand for wireless handsets, earnings per share were up a whopping 14%.

In other words, with 5G wind in its sails, Qualcomm should do well for years to come.

However, if you want to make even more money off of the 5G wireless revolution, I have some brand-new research that could be just what you need.

I have even just finished a special comprehensive report on 20 great 5G stocks.

So, if you learn all about everything that I’ve discovered about how you can cash in on what I see as a very lucrative trend, just click here to check it out.

Cheers and good investing,

Michael A. Robinson

Leave a Reply

Your email address will not be published. Required fields are marked *