© Reuters. 3 5G Stocks to Buy on Dips
The technology sector’s pullback has created an ideal opportunity to buy fundamentally strong 5G stocks on the dip. Because 5G connectivity enables everything from autonomous driving to cloud-based remote working, we think it is wise to bet on Marvell Technology (NASDAQ:), Skyworks Solutions (NASDAQ:), and Qorvo (NASDAQ:). They are positioned nicely to ride the 5G wave.Investors have been rotating away from expensive tech stocks into stocks from sectors that are well positioned to benefit from the economic recovery. This is evident in the Technology Select Sector SPDR Fund’s (XLK) 1.4% loss over the past three months versus the SPDR S&P 500 ETF Trust’s (SPY) 5.9% returns. However, the general tech pullback has created an opportunity to buy fundamentally strong stocks in the budding 5G space.
Since 5G enables everything from self-driving cars to advances in quantum computing, several 5G stocks are expected to benefit in the coming months from the widespread adoption of this technology. In fact, according to a Brand Essence research report, the global 5G infrastructure market is expected to hit $45 billion by 2025, growing at a 65% CAGR.
Against this backdrop, we think it is wise to bet on Marvell Technology, Inc. (MRVL), Skyworks Solutions, Inc. (SWKS), and Qorvo, Inc. (QRVO) that facilitate 5G connectivity across several sectors. Because these stocks are trading well below their 52-week highs now, it could be wise to bet on them.
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