While the 6G race is well underway, some curious investors may wonder when and how 6G technology will come. Many analysts predict the technology will begin testing between 2025 and 2028, with the first commercial applications arriving around 2030. Yet, 6G is more than just a faster telecommunications network. The introduction of 6G could result in significantly increased network capacity and functional range. That means the best 6G stocks to buy are those actively investing in taking advantage of this new spectrum.
As such, savvy investors should understand that attempting to invest in 6G technologies this early on is a long-term play. These investments may take a decade or more to mature, with no guarantee of future success. However, as we’ve seen with 3G, 4G and 5G networks, the natural progression to 6G will accelerate many industries beyond telecom itself. Thus, here are three companies whose stock value could rise generously over the long-term thanks to their 6G projects.
Ericsson (ERIC)
Swedish telecom giant, Ericsson (NASDAQ:ERIC) discusses the potential of 6G network technology as something which will create a cyber-physical continuum. For this legacy network builder, the technology is meant to bridge the current gap in time that exists on current information networks.
While primarily a European-focused company, Ericsson is a notable member of the NextG Alliance in the U.S., which is committed to accelerating the introduction of 6G tech in North America. Moreover, as Ericsson invests in these future technologies, its likelihood of capitalizing on its intellectual properties in the future increases.
From a financial standpoint, the company has received some mixed attention depending on the analytical angle. On one hand, its total quarterly revenue decreased by 14.75% year-over-year down to 53.33 billion Swedish Krona for the first quarter. On the other, its profit margin improved by 98.35%, signaling efficient financial management. This could make ERIXF one of the best 6G stocks to hold onto as it survives an ever-evolving telecom landscape.
Nokia (NOK)
Despite once being a master of the cell phone industry, Nokia (NYSE:NOK) has transitioned into a network tech company these days. For some, this has made the stock seem down and out. For others, it has repeatedly earned attention for its meme potential. Yet, whatever the perception of Nokia may be, it is one of the companies central to the development of 6G.
This stems from Nokia’s direct cooperation with major companies like SKT (NYSE:SKM) and NTT (OTCMKTS:NPPXF) to push onward in researching the integration of 6G and AI. Like in the case of many other companies pursuing 6G, Nokia is fairly secretive about the specific details of its technology. But, it has openly stated it is working on a high-speed networking project for interfacing an artificial intelligence with a different artificial intelligence.
Should the company succeed, it would become a critical service provider to the world of AI companies currently competing to bring the technology to the next level. Time will tell if Nokia’s comeback will be 6G tech.
Qualcomm (QCOM)
Of all the companies responsible for the integration and application of 6G, Qualcomm (NASDAQ:QCOM) might stand in the best position to take advantage of the new technology. That’s because QCOM is directly responsible for the design and manufacturing of the microchips which power devices to connect to internet and telecom networks.
For now, Qualcomm has not announced any specific chips that would harness the power of a 6G frequency spectrum, but like many others, the company is openly speculating as to what the best configurations would be for maximizing coverage in a future that relies on both 5G and 6G.
Furthermore, Qualcomm is one of the best long-term 6G stocks as it has both the financial and industry prowess necessary to survive the next 10 years before the technology becomes mainstream. Its processors and connective chips are likely to continue growing as staples of the broader tech industry.
On the date of publication, Viktor Zarev did not have (either 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.
On the date of publication, the responsible editor did not have (either directly orindirectly) any positions in the securities mentioned in this article.