Fifth-generation (5G) wireless technology is igniting a digital renaissance worldwide. The sector is brimming with contenders that could potentially become juggernauts in the space. However, in selecting the best 5G stocks to buy now, it’s imperative to exercise caution. After all, with any technology, such as 5G, the potential for a robust upside is massive. Unfortunately, it can also carry strong market volatility, regulatory uncertainty, and higher valuations.

With the market in a downturn, though, plenty of undervalued 5G stocks can be picked up for long-term gains. All as the 5G wave sets up to deliver higher speeds, propelling transformative technologies from artificial intelligence to autonomous vehicles.

With that said, let’s look at the seven of the best 5G stocks to buy now.

Best 5G Stocks to Buy Now: T-Mobile (TMUS)

T-Mobile (NASDAQ:TMUS) leads the pack with its innovative deployment strategies. Its effective use of both the low-band and mid-band spectrum has paved the way for unprecedented connectivity. Its approach ensures that a massive 96% of rural Americans are within reach of 5G services, which marks a massive stride in bridging the digital divide.

Since T-Mobile first came onto the scene with its 5G services in June 2019, it has extended its coverage across thousands of cities in the U.S. Besides, its 5G Home Internet service promises high-speed, seamless connectivity, catering to a growing customer base. At the conclusion of last year, it reached a major breakthrough, bringing Ultra Capacity 5G to an impressive 260 million people. Moreover, the firm remains unfazed as it plans to invest a colossal sum between $9.4 billion and $9.7 billion in 2023, bolstering its 5G infrastructure.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) has effectively carved a niche in the formidable 5G landscape thanks to its powerful Amazon Web Services (AWS) division. Its cloud network houses its Private 5G platform, promising an impressive edge as private 5G networks rise in tandem with the 5G boom. This positioning ushers for a strong outlook for long-term profitability, a thrilling prospect for discerning investors.

AWS has effectively fueled Amazon’s journey, witnessing an astonishing growth of more than 2,000% since 2013, with earnings hitting the $80 billion mark in 2022. The ever-expanding private 5G network market is expected to benefit from AWS’s proficiency, underscoring its strategic role in the space. Moreover, according to Custom Markets Insights, the private 5G sector could witness a breathtaking growth rate of 49.7% from 2023 to 2030.

American Tower (AMT)

American Tower (NYSE:AMT) commands a massive presence in the global communication infrastructure sphere, with 225,000 cell towers. Its revenue growth trajectory is nothing short of amazing, with full-year sales witnessing a 14% growth to $10.7 billion last year. On top of that, property sales followed a similar uphill journey, notching up roughly 15% to $10.47 billion.

Continuing its robust performance into the first quarter, AMT delivered yet another earnings and revenue beat. It reported sales of $2767.2 million, outstripping estimates by $27.2 million, a 4.4% increase in property revenues, and an 8.6% bump in adjusted EBITDA.

Looking ahead to 2023, American Tower aims to continue capitalizing on its globally diverse portfolio of communication infrastructure. As ongoing carrier network investments and record organic new business growth in the U.S. and Canada drive momentum, the company is in a pole position to drive the 5G wave.

Ericsson (ERIC)

Telecommunications titan Ericsson (NASDAQ:ERIC) continues to blaze trails in the 5G realm, undeterred by a massive U.S. Department of Justice penalty. Its footprint on the global 5G stage remains as strong as ever, with it commanding around 50% of worldwide 5G traffic through its involvement in 137 of 228 active networks. Additionally, it boasts more than 39% radio access network revenue share, underscoring its position as a 5G leader.

Ericsson is evolving its culture and reinforcing efficiency to fortify its 5G leadership. It is streamlining operations, aiming for a leaner, more agile workforce, with plans to cut 8,500 positions. The goal is to significantly lower more than $880 million in costs by the year’s close. These developments, marking a strategic pivot, are set to propel Ericsson’s operating margins well beyond their historical averages.

Nokia (NOK)

Former smartphone giant Nokia (NYSE:NOK) has effectively staged an extraordinary transformation. Under the guidance of CEO Pekka Lundmark, Nokia has established its position as a leading telecommunications player, setting the pace in the lucrative 5G landscape. Its resurgence is attributable to its effective execution, capital allocation, and the massive potential of its market.

Punctuating Nokia’s success is an enviable track record of securing promising deals, serving as the bedrock for its impressive revenue growth. This has resulted in a remarkable tally of more than 286 commercial 5G agreements. Furthermore, its resurgence manifests in its stellar top and bottom-line growth figures, marked by double-digit improvements over the past year. As we advance, it targets full-year sales growth between 2% and 8% in 2023. NOK stock trades at just 0.8 times trailing twelve-month sales, which is 70% lower than the sector median.

Marvell Technologies (MRVL)

Marvell Technologies (NASDAQ:MRVL) has established its position as a data infrastructure semiconductor solutions provider, underpinning high-speed 5G connectivity across a broad. It’s a critical pillar supporting the infrastructure and networks of 5G wireless, making MRVL stock a compelling choice.

Moreover, the firm’s innovative streak stretches beyond 5G. It also pioneers technologies leveraged in AI, drones, and cloud computing. Its multifaceted involvement in these interconnected, high-growth fields positions it as an exciting long-term option. Its fundamentals are remarkably strong, with its 5-year revenue and EBITDA growth at 20% and roughly 36%. Additionally, its levered free cash flows have grown by a whopping 228% over the same period. It isn’t the cheapest 5G stock by any stretch, trading at over seven times forward sales estimates, with a yield of more than 0.5%.

Corning (GLW)

Corning (NYSE:GLW) is uniquely positioned in the 5G realm, excelling in producing fiber optic cables, the critical components needed to address 5G’s speed and capacity needs. Last year, Corning made waves, unveiling its robust TXF fiber that achieved a transmission rate of 800 gigabits per second over 800km. This robust innovation holds vast potential for long-haul transmissions, poised to revolutionize many industries.

While the recent quarters may have painted a slower picture due to challenges in the Chinese market, the outlook remains spectacular. As the macroeconomic headwinds recede, Corning’s is anticipated to regain momentum. Moreover, a key element for Corning is its rock-solid dividend profile, boasting 12 years of consecutive growth and an appealing dividend yield of more than 3%. For investors eyeing the 5G horizon, Corning’s distinctive offering is an intriguing prospect worth considering.

On the publication date, Muslim Farooque did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.