Broadcom Vs. Qualcomm: Which 5G Stock Is A Better Buy?

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5G stocks are attracting more investing dollars with each passing day. If your portfolio does not yet have a 5G stock, it is time to considering adding one. Even if you own one or several 5G stocks, it is in your interest to keep an eye on the industry to see which stocks have the best growth outlook.

5G will prove even more important as time progresses. These uber-fast wireless connections will shape how business is conducted and improve the human experience. Though it has taken a while for 5G to be implemented, this technology is becoming ubiquitous.

Broadcom (AVGO - Get Rating) and Qualcomm (QCOM - Get Rating) are two of the more intriguing 5G stocks. Let’s delve into each’s nuances to determine which is more worthy of a place in your portfolio.

A Look at AVGO

AVGO makes semiconductor chips used to power 5G devices. Examples of AVGO semiconductor products include integrated circuits for specific applications, microwave components, and optoelectronics radio frequency components.

AVGO is different from QCOM in that it does not sell cellular modems of the standalone variety or mobile applications processors. AVGO’s chips have considerable value as they are essential to enabling smartphones’ wireless capabilities, meaning the company will benefit from 5G technology. It is important to note that the 5G transition is steering AVGO’s top customers, such as Apple (AAPL), to buy its most advanced cellular chips. Such chips are comparably expensive, meaning AVGO will be raking in cash for years to come.

AVGO has an overall grade of A in our POWR Ratings system. The stock has B grades in the Stability, Growth, Sentiment, and Quality components. Click here to find out how AVGO fares in the Value and Momentum components.

Of the 99 stocks in the Semiconductor & Wireless Chip industry, AVGO is ranked second. You can find other top stocks in that industry by clicking here.

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William K. 2 weeks ago Member's comment

An important thing to understand about those VERY ADVANCED chips is that theyare single-ourced, meaning that they are available from one maker only. So if there is a production issue the availability shrinks rapidly. THAT is why the shortage is hurting the auto companies. The chip manufacturers lowed production based on all of the plant closings due to the virus. And re-starting production is a major effort that can not be hurried or pushed.