The top corner of your phone screen probably reads “4G LTE.” It might seem like a tiny change… But soon, it will say “5G” there instead. But it actually represents one of the greatest technological shifts in our lifetime. Discover the three stocks that you’ll need to be in on for the biggest potential profits.
Week of December 30, 2019
U.S. markets have had one of the best years on record.
To date, the Dow Jones Industrials are up 25%. The NASDAQ is up 38%. The S&P 500 rocketed higher by 31%. The hottest sector of the year was tech with companies like Advanced Micro Devices (AMD) leading the group.
Shares of AMD are now up 160% year to date and could run even higher.
For one, analysts over at RBC just raised their target price to $53 “as data center demand ramps up and gaming sales come in better than feared, as we expect, this should lead to higher gross margins relative to current Street expectations,” as quoted by The Street.
Two, over the next six months, the company has plans to launch more 7-nm products that are expected to give a significant boost to the firm’s bottom line. Three, new gaming consoles from Microsoft and Sony Corporation are set for a late 2020 launch, and will both use AMD chips. It also doesn’t hurt that AMD continues to gain market share from Intel.
As we wait to see what’s in store for 2020, here are the top stocks piquing our interest.
Opportunity No. 1
Infinera Corporation (INFN)
One of the top reasons to like INFN is its involvement with 5G with its EMXP-XH800, an X-haul-optimized packet optical switch purpose-built for Time-Sensitive Networking (TSN), which is designed to help network operators cost-effectively deploy challenging 5G and fiber deep applications, says the company’s November 2019 press release.
“In many regions, commercial 5G launches have begun, but the move from initial deployments to mass-market 5G is a significant step that has major ramifications for the transport network,” said Sterling Perrin, Principal Analyst, Optical Networking & Transport at Heavy Reading. “As operators move to advanced 5G services, packet transport networks will be essential for lowering costs and boosting efficiencies.”
Opportunity No. 2
Bed Bath & Beyond (BBBY)
BBBY has been one of the top performers since the second half of the year, exploding from a low of $7.65 to $17.28. However, we believe there’s further upside ahead, as the company fires some of its top executives with hopes of getting fresher eyes on the team. While a turnaround won’t be easy, investors are piling back in on hopes it can turn things around in the New Year.
Opportunity No. 3
HUYA Inc. (HUYA)
HUYA platforms enable broadcasters and viewers to interact during live streaming. The company also provides advertising and online game-related services. The company also works with e-sports event organizers, and has developed e-sports live streaming as one of the most popular content genres on its platform.
With this stock, good opportunity can be found through eSports. “The global esports audience will grow to 453.8 million worldwide in 2019, a year-on-year growth of 15.0%. This audience will consist of 201.2 million Esports Enthusiasts (+16.3% year-on-year growth) and 252.6 million Occasional Viewers (+14.0% year-on-year growth),” says Newzoo, a global provider of games and eSports analysis.