The fifth generation of wireless networks is called “5G.” This technology provide us with the fastest, most reliable, most responsive connectivity we’ve ever seen.
With ultra-low latency (the time between data requests and system responses) and extremely high processing speeds, it can do more than improve our wireless home internet connections. It can also support new health care technology, artificial intelligence, virtual reality, and even autonomous cars.
5G technology is quickly outgrowing 4G networks. The companies behind this new generation of wireless communication could be worthy long-term investments. Let’s take a closer look at 5G stocks and see if they’re right for your portfolio.
What are 5G stocks?
5G stocks are companies that are paving the way for 5G wireless networks. These stocks are a diverse bunch. They range from semiconductor companies building computer chips to real estate companies building broadcasting towers to wireless carriers supporting 5G.
Though it’s quickly surpassing 4G, 5G technology is still fairly new. It was first introduced in Chicago and Minneapolis in April 2019. Rogers Communications (TSX:RCI.B) brought it to Canada in September 2020.
So far, Canada has five major 5G service providers:
- Rogers Wireless
- Bell Mobility (TSX:BCE)
- Telus Mobility (TSX: T)
- Quebecor (TSX:QBR.B) through Videotron
- Sasktel
So far, Canada lags behind other countries in terms of 5G deployment and development. This is partly because the pandemic slowed the economy, and partly because Canada is the second-largest country in the world. Building 5G networks requires intense capital investment and strong telecom companies.
The companies mentioned above have to scale upward to secure the cash flow needed to deploy 5G across such a large landscape. If they can pull it off—which it looks like they will—they could be worthwhile long-term investments.
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Investing in 5G Canadian stocks
Right now, the best opportunities in the 5G market sector are in companies that are paving the way for 5G technology. These include semiconductor manufacturers, infrastructure providers, and wireless technology companies.
To help you understand the full scope of this fast-growing industry, let’s look at leading companies from these three sectors.
Top 5G semiconductor companies
In order for 5G networks to achieve high speeds and more connectivity, they need powerful and reliable computer chips capable of quickly processing tonnes of data.
That’s where semiconductors come in. These tiny computer chips have lightning-fast computing power, making 5G technology possible.
Currently, demand for semiconductors is hot—and not just from those developing 5G networks, but also from industry. The biggest semiconductor companies in the 5G sector are the United States, though keep your eyes open for Canadian companies rising in this hot field.
For those looking for a solid long-term investment in semiconductors, here are three companies to consider.
| Semiconductor Stock | Description |
| NVIDIA (NASDAQ:NVDA) | Leading manufacturer and designer of GPU, a type of semiconductor used in gaming consoles, data centres, and artificial intelligence. |
| Broadcom Ltd. (NASDAQ:AVGO) | Top maker of connectivity chips used to handle Wi-Fi and Bluetooth. |
| Skywork Solutions (NASDAQ:SWKS) | Producer of semiconductors used in wireless handsets and wireless routers. |
NVIDIA
NVIDIA was an early pioneer in GPUs (graphics processing units), which are used to render video game graphics. These days, NVIDIA has developed its chips for a number of applications, including 5G networks.
GPUs are well suited for 5G deployment, and already they’re being used by telecoms and equipment makers. In addition, GPU-hungry video games — especially cloud-based video games streamed over a network — could be one of the biggest beneficiaries of 5G development among consumer products.
Already a huge enterprise, this GPU industry leader is finding a potentially massive new market in 5G and has a history of making technological advancements, as signified by its skyrocketing sales and stock price.
Broadcom Ltd.
Broadcom is a major chip designer whose semiconductors are key components in 5G base stations. It was the first company to complete an end-to-end 5G switching portfolio, which brought together radio and fixed-line traffic onto a standard, Ethernet-based infrastructure. It also manufactures semiconductors for 5G smartphones, with Apple being one of its foremost clients.
Broadcom Ltd is poised to capture a significant share of the expanding 5G market due to its comprehensive portfolio of semiconductors and infrastructure solutions. Broadcom supplies essential components like RF filters, processors, and wireless communication chips, integral to 5G network deployment. Broadcom’s sales have surged although a lot of that has come from increased revenue in the AI market. Overall, Broadcom is set to meet or exceed its $8.5 billion adjusted EBITDA goal by fiscal 2025, ahead of schedule.
Skyworks Solutions
A key smartphone and consumer electronics supplier, Skyworks Solution has used its connectivity know-how to enter other markets, including smart home devices, connected industrial equipment, and medical devices. It has also developed some of the basic components that power the next-gen 5G network.
Skyworks Solutions reported strong financial results, with quarterly revenues of $1.3 billion, up 15% year-over-year, driven by demand for its RF modules in the 5G and IoT markets. Net income rose to $300 million from $260 million the previous year. Leveraging its presence in mobile, automotive, and industrial sectors, Skyworks is well-positioned for continued growth as demand for its connectivity solutions rises.
Though it’s not as large as the previous two chipmakers, Skyworks has a healthy balance sheet that can promote further growth as the next wave of 5G connectivity services comes online.
Top 5G equipment and infrastructure stocks
Semiconductors might be the brain behind 5G. But without equipment and infrastructure companies, there would be nothing to house the chips, nor any way to connect chips to the larger network.
Equipment and infrastructure companies, then, are those businesses that build hardware for 5G networks, as well as lay fibre-optic cables and build towers to connect networks together. As with semiconductor stocks, many of the biggest names in this sector are in the United States.
We’ll take a look at some Canadian equipment and infrastructure companies under “wireless provider stocks” below. For now, here’s three of the biggest equipment and infrastructure stocks.
| Equipment and Infrastructure Stocks | Description |
| Artista Networks (NYSE:ANET) | Top software and hardware provider. |
| Corning (NYSE:GLW) | Glass and ceramics manufacturer that makes fibre-optic technology for 5G networks. |
| Ciena (NYSE:CIEN) | Major provider of network equipment and software to telecommunications companies. |
Arista Networks
Data centre and internet infrastructure company Arista Networks is an often overlooked 5G stock. Because 5G will be carrying massive amounts of data — like ultra-high-definition video streaming, or communications for network-connected vehicles — data centres will play a key role in computing all of the new digital information. Arista is a top equipment provider with open-source hardware and software-defined management tools, and it will benefit from 5G’s accompanying boom in mobile data.
Arista Networks reported robust financial performance, achieving quarterly revenues of $1.5 billion, a 25% increase year-over-year, fueled by strong demand for its cloud networking solutions. The company’s net income climbed to $450 million, compared to $360 million the previous year. Arista’s innovative offerings in data centers and enterprise networking have solidified its market position, with growing adoption across cloud providers and large enterprises.
Corning
Corning’s role in powering 5G networks is anything but modest: this specialty glass and ceramics company is responsible for making firer-optic cables that can support the high speeds of 5G technology.
In addition to equipping 5G companies with special cables, Corning also builds cell antenna and software for 5G networks in office buildings and public venues. The company has been around for a while, and it even pays out a dividend to shareholders.
Corning reported strong financial performance with quarterly revenues of $3.5 billion, a 10% increase year-over-year, driven by its role in the expanding 5G market and its advanced glass and optical fiber technologies. The company’s net income rose to $500 million from $450 million the previous year.
Ciena
Ciena is a telecommunications networking company that supplies equipment and software to a number of clients, including cable providers, telecommunications companies, and even governments. The company entered the 5G race by developing routers that will support the high processing speeds of 5G technology. Supply chain hiccups and disappointing manufacturing numbers have knocked this key 5G stock down in recent months. Even so, Ciena could be a good long-term pick.
Ciena recently reported impressive financial results, with quarterly revenues of $1.2 billion, marking a 20% increase year-over-year, driven by demand for its networking systems, software, and services. The company’s net income increased to $250 million from $210 million in the previous year. Ciena’s advanced solutions in optical networking and 5G infrastructure have positioned it strongly within the telecom sector, catering to the growing needs of broadband networks and data centers.
Top 5G wireless provider stocks
5G wireless providers are those companies that are selling 5G networks to consumers. Many of these companies are also responsible for building 5G infrastructure in Canada, making them partly infrastructure stocks, too.
For those looking for the best 5G stocks in Canada, here are three names you should be familiar with.
| 5G Wireless Provider Stocks | Description |
| BCE (TSX:BCE) | Wireless and internet service provider that also powers Canada’s fastest 5G network. |
| Telus Corp (TSX:T) | One of the three big wireless providers in Canada with 10.75 million phone subscribers nationwide. |
BCE
As of January 2025, BCE Inc. remains a dominant force in Canada’s communications sector. The company has continued to expand its subscriber base, surpassing 12 million subscribers by the end of 2024. Independent assessments have recognized Bell’s 5G network as Canada’s best. In 2024, Global Wireless Solutions ranked Bell 5G as the top network in the country.
In the third quarter of 2024, BCE reported operating revenues of $5.97 billion, a 1.8% decrease compared to the same period in 2023. This decline was primarily due to a 14.3% drop in product revenue, totaling $685 million. Service revenue remained stable, with a slight increase of 0.1% to $5.29 billion.
BCE has a strong history of dividend payments, having increased its dividend for 17 consecutive years with a dividend yield of 11.82% and is paid out quarterly.
Telus Corp
TELUS is another big wireless provider in Canada, supplying a variety of services, including wireless, internet and television to over 19 million subscribers.
TELUS continues to be a leading telecommunications company in Canada, and has been actively expanding its 5G network across Canada. TELUS has committed significant infrastructure investments across Canada, with plans to invest $73 billion nationwide by 2028. This includes $24 billion in Ontario, $17 billion in British Columbia, $16 billion in Alberta, and $10 billion in Quebec to expand and enhance network infrastructure, operations, and spectrum licensing.
In 2023, TELUS reported consolidated operating revenues of $5.2 billion in the fourth quarter, a 2.8% increase from the previous year. By the third quarter of 2024, revenues reached $5.1 billion, reflecting a 1.8% year-over-year increase. However, profitability declined, with TELUS Digital posting a net loss margin of 4.9% in Q3 2024, compared to a net income margin of 1.4% in the same quarter of 2023.
TELUS stock currently sits at $20.83 as of January 29, 2025 and has a dividend yield of 7.725%.
Are 5G stocks right for you?
5G stocks are perfect for investors who want to invest in technology and are okay employing a buy-and-hold strategy for the long term. The growth of 5G stocks will likely be slow and sometimes volatile, yet you’ll likely see continued upward growth if you stay invested for 10, 15, even 20 years.
Given Canada’s commitment to develop its 5G technology, these companies will only become more crucial to the country’s telecommunications and mobile networks.
That said, you should still invest only in 5G companies with stable business models and strong cash flow. You might even want to diversify your holding with a variety of the 5G stocks mentioned, which could help hedge your portfolio against industry-specific downturns.