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Courtesy of Samsung
According to Bank of America Merrill Lynch, the move to fifth generation wireless technology, or 5G, will offer investors a number of attractive investment opportunities.
The company predicts that 5G phone shipments will increase from 17 million this year to 130 million in 2020 and 327 million in 2021.
"RF [radio frequency chip] The supply chain companies look interesting given their new growth opportunities for 5G phones, "wrote analyst Simon Woo in a note on August 28.
The transition to 5G is extremely important for the semiconductor and telecommunications industries. Analysts expect the 5G to offer speeds 10 to 40 times faster than current 4G LTE networks. Its low latency promises to enable new applications ranging from augmented reality and automated factories to self-control and cloud games.
Here are two Bank of America Merrill Lynch shares for sale, which play the 5G trend:
Taiwan Semiconductor Manufacturing
"In the face of the latest macroeconomic challenges, we prefer equities with thematic drivers that could potentially benefit from the next 5G era and changes in the global supply chain, including TSMC," he wrote. .
The analyst cited the large size of the semiconductor foundry and its technological leadership in chip manufacturing. The company has set its target price of $ 47 ADR for
Taiwan Semiconductor
(TSM), 10% higher than the recent closing of $ 42.63.
Broadcom
"We are waiting
Broadcom
(AVGO) must be one of the main beneficiaries of the adoption of the 5G smartphone … in addition to providing specialized processors for 5G round trip transport, "he wrote.
The analyst said Broadcom would provide chips to both
Apple
and
Samsung
for their 5G smartphones. It has a target price of $ 345 for the title, which suggests a potential gain of 22% for Broadcom shares.
Write to Tae Kim at [email protected]
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