ZM, MSFT, AAPL, And T Are Drivers Of New White House Infrastructure Proposal

The White House has put forth a preliminary proposal for an infrastructure bill that could add fuel to the fire the Federal Reserve is stoking in the stock market. Stocks like Apple (AAPL), already trading at all-time highs, should get an additional boost from spending.

Under the $1 trillion plan, some of the money will support “visionary projects and technologies that can strengthen our economic competitiveness, including 5G wireless communications…”

As many, many more people have begun working remotely, or on remote teams, the demand for bandwidth has jumped incredibly. Not only are demands rising due to the remote nature of the work, but because of the demands of video software, such as Zoom (ZM) and Microsoft (MSFT) Teams.

Congress has already put forth their desire to pass an infrastructure bill, even larger than the one proposed by the White House. Even during an election year, I think there’s a good possibility something will be done, mainly due to the need to provide additional stimulus because of the coronavirus pandemic.

While most people think of large industrial companies when they think infrastructure, I think the technology component of the bill could give a boost to a desperately needed faster and more robust digital network, in the form of 5G.

Apple (AAPL) could be one of the major beneficiaries of 5G buildout, as the company sells phones compatible with 5G standards. The current belief is that all new phones released by Apple moving forward will have 5G capability.

Commenting on the company’s earnings conference call, Apple CEO Tim Cook said 5G is still in the beginning of a long cycle: “With respect to 5G, we’re in the early innings of its deployment on a global basis.”

Apple, which reported a blowout quarter, could be a huge beneficiary of an upgrade cycle, again, as more people than ever are working remotely. In its latest quarter, the company reported revenue of just over $58 million, a 1% increase year-over-year.

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