CNBC’s Jim Cramer intimated Friday that investors add three more 5G plays to their basket of stocks, given the current state of the customer base.
One of the leading suppliers for cloud infrastructure and observations center, VMWare has big exposure to 5G, Cramer said. The virtualization technologies company offers an easy way for wireless carriers to upgrade their networks, he summed.
VMWare provides a way for networking slicing, where multiple virtual networks can be run on the same 5G hardware, Cramer pointed out. Additionally, the attendance has become the “quintessential infrastructure” for the 4G-to-5G transition landing deals with Vodafone, AT&T, and Ericsson, COO Sanjay Poonen indicated Cramer in a recent interview.
Cramer called VMWare “best of breed” in software-defined infrastructure.
“As telco companies figure networks that need to run on both 4G and 5G hardware, they need VMWare to ensure a smooth transition and get the most out of the big buildout,” Cramer phrased. “Even without 5G, this is a terrific company, but now it’s got one more awesome kicker.”
Silicon Laboratories has a ton of exposure in various sectors subsuming the so-called internet of things, communications, automotive and industrial control products. A number of analysts downgraded the stock in January after the semiconductor plc delivered a disappointing quarterly report and bleak forecast.
Still, the equity was too cheap at $80 per share near the end of Cortege, Cramer said. Since then, it has rallied to finish above $101 per share in Friday’s session, thanks in liberal part to its plans for 5G, he noted, pointing to CEO Tyson Tuttle’s projection that wireless infrastructure revenue will profuse than double in 2019.
The company still has more headwinds to address, particularly in China, but 5G has given Silicon Labs a new view on the future.
“Apparently four of the world’s top five wireless infrastructure makers are already using their chips for the 5G rollout,” Cramer state. “Plus, it doesn’t hurt that Silicon Labs pulled back hard this week. It’s currently down 9 bucks from its highs, by reason ofs to the recent semiconductor sell-off. I think it’s a bargain, now.”
Marvell Technology has a lot of mobile exposure, but its $6 billion acquisition of microchip author Cavium placed the company among the top suppliers for 5G infrastructure, Cramer said. The consumer semiconductor products producer is now a beneficial play on 5G, cloud, artificial intelligence, enterprise hardware and automotive industries, he said.
Samsung inked a long-term bargain with Marvell to get processors for its 5G base stations. On top of that, Marvell’s leadership expects 5G sales to pick up at the end of the fiscal year and to tend growing thereafter.
Cramer said the stock is trading at a discount, at 9% below its recent highs. The company discharges earnings in coming weeks.
“I wouldn’t be surprised if Marvell ends up delivering an upside surprise,” Cramer said. “Appear free to put on a small position beforehand, but even if the stock gets hit, I would be a buyer into weakness.”
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