5G technology implementation is expected to grow significantly in 2021, driven by President Biden’s proposed, aggressive spending on 5G infrastructure. Thus, we expect Skyworks Solutions (NASDAQ:SWKS), Qorvo (NASDAQ:QRVO), and Cirrus Logic (NASDAQ:CRUS) to deliver solid returns in the coming months. Read on for details.Hybrid employee organizational structures, cloud services and Internet of Things (IoT) devices used by various businesses reveal the growth potential of 5G. To expand the country’s 5G base, President Biden has proposed $50 billion funding for the U.S. semiconductor industry as part of his $2 trillion infrastructure spending proposal. This follows the President’s executive order, passed two months ago, to review the nation’s semiconductor shortage.
Various companies have begun to manufacture 5G-supported devices to capitalize on this industry tailwind, leading to a shortage of semiconductor chips worldwide. In addition, U.S.-China trade tensions are forcing Taiwan Semiconductor Manufacturing Company (TSM), a Taiwanese multinational semiconductor manufacturing and design company, to build factories in both countries. Consequently, the global 5G services market size is expected to grow at a CAGR of 46.2% over the next seven years to hit $664.75 billion by 2028.
In light of these developments, Skyworks Solutions, Inc. (SWKS), Qorvo, Inc. (QRVO), and Cirrus Logic, Inc. (CRUS) are expected to generate significant revenues in this quarter. Thus, we think it could be wise to invest in these stocks now.