The 5G chipsets market may expand at CAGR of 52.7% in the next 7 years to over $23.5 billion
The UK is struggling to catch up in the 5G race, dropping one position in the global rankings since late 2019
A need for higher speed data connection and lower latency has increased demands for 5G equipment
According to some recent reports, the 5G chipset market is expected to grow over 50% to $23.5 billion in the next seven years. In this piece, we present 3 5G stocks that are likely to benefit from the emerging trend.
Rapid growth expectations
According to a recent market research report, the 5G chipsets market is estimated to expand at a compound annual growth rate (CAGR) of 52.7% from this year to 2027 and will be worth around $23.5 billion.
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Such rapid growth expectations for the 5G market are mostly based on the rising demand for high-speed data services, fast-developing smartphone technology, as well as the growth of IoT & connected devices. Still, the growth of the market is partly limited because of the expensive equipment, a fragmented spectrum harmonization model and emerging cybersecurity issues.
Based on the application, the largest share of the 5G chipset market this year is likely to fall under the smart cities section. The 5G network is utilized in facing key problems in smart cities, including infrastructure and housing management, providing quick access to services, transportation and logistics, public security and surveillance, efficient services management, intelligent mobility, environment & pollution control and more.
When it comes to the chipset type, the largest portion of the 5G chipset market is expected to fall under the application-specific integrated circuits segment. A big part of this segment is mainly accounted for its low cost of manufacturing for large volume production, better efficiency, higher performance compared to other ICs, and higher adoption by mobile network providers for cutting costs.
Based on frequency, the sub 6Ghz segment is projected to control the largest portion of the overall 5G chipset market this year. On the other hand, the 24Ghz and higher frequency section are expected to expand at the fastest CAGR during the forecast period. The expansion of this segment is largely owing to its capability to handle large bandwidth and high-speed data transfers.
Based on vertical, the segment estimated to develop with the highest CAGR during the forecast period is the security & surveillance. This is mostly thanks to the emerging security difficulties in urban areas, as well as attempts from city authorities to offer higher security and minimize reaction time in case of emergencies.
Even though the coronavirus pandemic has slowed down the adoption process of 5G services in the world, it had an insignificant effect on 5G as it’s still an emerging technology and only a few industries use 5G network services.
Furthermore, because of coronavirus, numerous industries were forced to base their operations on remote servers, which requires a higher speed data connection and lower latency. This will also have a positive effect on 5G in terms of demand.
UK must up its 5G game
As for the deployment of the 5G network, analyst house Omdia found that the UK has dropped one position in the global rankings since late 2019. According to Omdia, the UK is now in the 7th position.
South Korea, which has around 5.88 million subscribers, is still ranked number one, compared to the previous report when South Korea has had 4.67 million subscribers. Kuwait is sitting in the second position, while the United States is in the third.
When it comes to the UK, the country’s 4 major operators are working to grow their 5G footprint, and the government is also pouring lofty investments to provide rural areas with access to the advanced cellular network infrastructure.
“The UK is second only to Switzerland in terms of 5G deployment in the European market and as things stand is well-positioned to lead its continental rivals in the deployment of 5G – giving it a potential advantage in terms of developing next-generation industries,” said Stephen Myers, Principal Analyst at Omdia.
3 5G stocks to buy in October
Nokia (EPA: NOKIA) is already benefiting from the UK’s decision to bar Huawei from supplying its 5G equipment to telecom companies. The Finnish firm agreed a deal to supply its 5G equipment and services BT.
Nokia stock price fell around 30% from August highs in a major market correction. Shares closed lower for the sixth week in a row as they approach the 3.05 mark, offering a major buying opportunity. Levels above the 4.00 handle will be targeted by the bulls.
As a company that manufactures semiconductor devices used across a wide variety of sectors, Xilinx (NASDAQ: XLNX) has seen its revenue consistently rise.
Xilinx stock price jumped around 50% from its lows in March as the buyers aim to capitalize on the broken descending trend line. The first target on the upside is $116, signalling a quick upside of over 10%.
Qualcomm (NASDAQ: QCOM) is definitely one of the prime candidates to benefit from the 5G revolution. The company has reportedly nearly 700 patents registered, including its flagship products Snapdragon chips, which are widely used in the mobile phones industry.
In August, Qualcomm share price rose to an all-time high near $124.00. Eventually, a pullback to the $96 handle would provide a massive opportunity to invest in Qualcomm shares and benefit from the company’s role in the 5G infrastructure rollout.
A new market research report showed that the 5G chipsets market is projected to grow at a compound annual growth rate (CAGR) of 52.7% from 2020 to 2027 and will achieve worth of about $23.5 billion. Xilinx, Qualcomm and Nokia seem well-positioned to gain amid the 5G network rollout.
TOKYO, Oct. 26, 2020 (GLOBE NEWSWIRE) -- ASICLine ( https://asicline.com ) has recently pioneered a new era in the world of cryptocurrency mining with the official launch of its two miners FirstLine and PowerBox. These advanced range of 5nm ASIC miners make crypto mining simple, affordable, and profitable like never before, with several features that are unheard of in the industry.
Hash rate and power consumption are the two key parameters determining the profitability of cryptocurrency mining. In both these fronts, FirstLine and PowerBox beats all other available products hands down. Naturally, within the current level of mining difficulty, the profit making potential of these two products is higher compared to any other product.
Hash Rate and Power Consumption:
FirstLine: Bitcoin 410 TH/s, Litecoin 60 GH/s, Ethereum 8 GH/s, and Monero 3 MH/s, and 650 W power consumption.
PowerBox: Bitcoin 1250 TH/s, Litecoin 180 GH/s, Ethereum 24 GH/s, and Monero 9 MH/s, and 1800 W power consumption.
Power consumption of 650 W and 1,800 W respectively, for FirstLine and PowerBox.
Profit per Month:
FirstLine: $960 (Bitcoin), $4,152 (Litecoin), $6,345 (Ethereum), and $7,071 (Monero)
PowerBox: $2,`1942 (Bitcoin), $12.4K (Litecoin), $19 K (Ethereum), and $21.1 K ( Monero )
Easy to Use: Users are just required to plug in, and connect to the internet through Wi-Fi or cable, enter the pool data or select ASICLine pool, which has 0 % fee, and insert wallet address and start mining. No prior knowledge in IT or mining is required.
“The global lockdown has deprived millions of people from their livelihood and we are happy to create a profitable work-for-home opportunity for all through ASICLine,” said ASICLine CEO Martin Muller.
To find out more, visit https://asicline.com/
About ASICLine: ASICLine was founded by a team comprising of multiple investors dedicated to bringing the latest ASIC technology miners to the market before the so-called technology giants use them for a long time for their own profit and dump them on the market when they are no longer profitable. Whenever a new generation of ASIC is available, ASICLine is committed to bringing it to the public for a price they can afford. The company is now offering an advanced range of ASIC miners with guaranteed profitability.
Haya Sato firstname.lastname@example.org +81 (050) 5806-9615
STOCKHOLM, July 24, 2020/PRNewswire/ -- Financial Summary - Q2'20
Underlying financial results better than expected, due to our Market Adjustment Initiatives (MAI)
Net Sales of $184 million declined 62% including an Organic Sales1) decline of 53%
Active Safety Net Sales of $79 million declined 57% including an Organic Sales decline of 56%
Operating Cash flow of $(107) million
Outlook - FY'20 Indication
Organic sales are expected to outperform the global LVP due to new program launches
Currency translation impact is expected to be (1)%
RD&E, net is expected to improve by more than $100 million from 2019, on a comparable basis
Operating loss is expected to improve from 2019 levels (on a comparable basis), and Cash flow before financing activities1) is expected to be approximately $(200) million for H2'20
MAI program contributed to our improved operating loss and cash flow performance, particularly in engineering reimbursements, and the recovery from Nissin Kogyo, thereby mitigating the negative effects of COVID-19 for the quarter
Cash flow before financing activities tracking in-line with our expectations for FY'20
Order intake year to date is more than $300 million and more than $600 million during the LTM
Veoneer and Volvo Cars finalized the split of the Zenuity software JV
UN Regulation establishes strict requirements for Automated Lane Keeping Systems (ALKS) for passenger cars starting in 2021
Continue to make progress towards the closing of the VBS-US operations divestiture Comments from Jan Carlson, Chairman, President and CEO
The second quarter was very unusual. The light vehicle production declined by around 45%, the worst decline in recorded history. The many complexities in terms of regional differences, global supply chains, short delivery notices and several other factors, made it a very difficult environment for running effective and efficient operations. The health of our employees remained a continued focus, not least because of the additional challenges of safely ramping up our operations, as the COVID -19 pandemic is first and foremost a health crisis. Despite the extreme conditions in the quarter, our market adjustment initiatives are having the desired effects and we are currently on track to reach our efficiency targets for 2020. In the first and second quarter we have been particularly successful in customer negotiations which were reflected in our results in the second quarter. We are also continuing to deliver on-going improvements in RD&E and other cost efficiencies according to plan.
During the quarter we continued the introduction of the next generation of our Active Safety portfolio. Our fourth-generation vision system is now launched and the indications are that this system is performing very well, further strengthening our position as a leading challenger in the vision market. There have now also been a total of eleven launches of our next generation 77GHz radar product, including two recent launches of forward looking radar, a very important development as we see this generation of our radar product as highly competitive in the market for years to come.
The trend, focus and commercial opportunity for the next decade is in collaborative driving and active safety. The finalization of the split of Zenuity and the integration of more than 200 talented software engineers into our systems and software team fits right into that opportunity. These additions are focused on driving policy, which complements the team mainly focused on perception software and system design. Having this combined capability fully in-house further enhances our ability to develop full systems as well as individual products for all different types of OEMs and segments of the light vehicle market. We are also encouraged by the initial positive reviews of the Polestar 2. Most of the Active Safety system on the Polestar 2, including the entire system ADAS software stack, is delivered by Veoneer, a good reference for the next steps for our systems and software business. Further launches are being rolled out in the second half of 2020 and beyond.
I am very proud of the way the entire Veoneer team has performed under these circumstances, staying focused on execution, launching new technologies and customer programs, while continuing to make progress in the Market Adjustment Initiatives (MAI) program first announced over a year ago. This was all done while simultaneously handling the health situation and the changes that come from transitioning our way of working to a mainly virtual and digital environment. I would like to extend my warm thanks to the entire Veoneer team.
An earnings conference call will be held today, Friday, July 24, 2020 at 14:00 CET. To follow the webcast or to obtain the phone number/pin code, please see www.veoneer.com. The slide deck will be available on our website prior to the earnings conference call. See also the Non-U.S. GAAP Financial Measures section on page 11 of this earnings release for further disclosures. 1 For all Non-U.S. GAAP financial measures, see the reconciliation tables in this earnings release, including the Non-U.S. GAAP Financial Measures section on page 11. See the Non-U.S. GAAP Financial Measures section for further discussion of the forward-looking Non-U.S. GAAP financial measures.
This report is information that Veoneer, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the EVP Communications and IR set out above, at 12:00 CET on Friday, July 24, 2020.
Thomas Jönsson - EVP Communications & IR, +46 8 527 762 27 or email@example.com
Ray Pekar - VP Investor Relations, +1 248 794 4537 or firstname.lastname@example.org.
Inquiries - Company Corporate website www.veoneer.com.
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