By: Jessica Walsh
Technology is growing at an exponential rate that shows no signs of slowing down. If anything, the recent upending of the global market due to the pandemic has only incentivised its rapid development — and investors should keep a watchful eye.
The 2021 Technology and Innovation Report by the United Nations Conference on Trade and Development (UNCTAD) takes a deep look into the decade-defining technological trends. With Industry 4.0 in full swing and the swift digitalisation happening globally, the report mentions 11 pillars in frontier technology that are expected to lead this technological revolution: Artificial Intelligence (AI), Internet of Things (IoT), 5G, big data, blockchain, 3D printing, robotics, drones, gene editing, nanotechnology, and solar photovoltaic (PV).
With that in mind, it would be wise to put investments into core industries that will see a lot of movement as a result of these frontier technologies. This can be an especially fruitful time to think ahead, as countries start pouring more resources into digital adoption.
The Globalisation of 5G
The 5th generation for mobile networks, or 5G, started its worldwide deployment in 2019, just before the coronavirus pandemic. The wireless technology has completely overtaken its predecessor in terms of performance, boasting much lower latencies, faster data delivery and transfer speeds, more consistency in connectivity, and expanded capacity. Because of this, adoption has been continuous despite the hurdles of the past year. IEEE.org’s report on major vendors reveals Samsung and Huawei have already led the global 5G movement, with market shares at 34.4% and 33.2% respectively. These numbers are expected to rise exponentially over the next five years.
In Rakesh Lakhani’s editorial piece on 5G as the future, he highlights how the pandemic arguably pushed the integration and attractiveness of the technology as consumers seek out more connectivity. In a world where remoteness has become normalised and digital resources are entwined within our daily lives, Lakhani notes how this level of connectivity goes beyond recreational commercial products and can impact crisis management, medical response, and business solutions in ICT.
Taking Stock in Technology
Much of the world has gone mobile. Beyond that, technology permeates every industry on a global scale. There’s no urban sector that is absent from developing technologies. Because of this, tech’s umbrella of platforms and services have taken over as a priority for innovators, disruptors, and investors alike. If you look at FXCM’s shares heat map, most of the companies that saw a positive movement in the last month are tech players or have frontier technology significantly integrated into their platform. These are Bilibili, NVIDIA, Google, SAP, Smoore International, WuXi Apptec, Tesla Motors Inc., Amazon.com, and NetEase (HK) — all promising or already big names in tech.
Despite the uncertainty of the past year (or perhaps due to it), more people feel encouraged to invest while various applications of frontier technology see relevant industries thrive. The shift to a digital future is largely inevitable, and these tumultuous times can be opportunities to look into stocks and shares while prices are low. Investing in 5G and tech stocks is actually made more convenient now.
With the rise of trading platforms, even investors from the UAE can participate in international stock markets and place their shares purchases using their phones. You can put your money into 5G by buying stocks of 5G companies, be they producers of wireless carriers, makers of 5G-capable devices, or providers of 5G infrastructures. The top companies in the US are Verizon and T-Mobile, but even Apple has a stake in 5G-capable devices. NVIDIA is another company that is a good tech and 5G stock purchase, given their involvement in telecommunications companies that support 5G. Even the UAE telecommunication company du is eyeing is eyeing a 5G expansion, which might be worth looking into for your portfolio.
Of course, a return of profit can never be 100% assured, but putting your eggs into a future-forward basket can dramatically increase favourable odds. It is all but cemented that technology will continue to proliferate and change, so it’s wise to put your money in the future.
