Communications Sector

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>>> Behind the excitement for 5G networks


Insights from Fidelity's portfolio managers

Portfolio managers offer investing insights for the months and years ahead.

by Sonu Kalra

November 6, 2019

https://www.fidelity.com/about-fidelity/overview


"I think 5G technology could boost sales of consumer electronics, transform connectivity in the home, office, and workplace, and mostly live up to all the excitement about its much-faster network speeds," says Sonu Kalra, portfolio manager of Fidelity® Blue Chip Growth Fund (FBGRX).

Kalra says 5G offers as much as a 20-times speed advantage over existing networks, which means consumers can almost instantly download full-length movies on their devices.

"Keep in mind, 5G won't work on existing smartphones, so I think this advancement will help major device makers sell a lot of new product," Kalra notes.

He says the technology also has implications for automobiles and autonomous driving, each of which relies heavily on information being passed between the vehicle and the cloud.

In education, Kalra sees potential for virtual-reality classrooms, and in health care, more remote-monitoring systems and tele-health offerings.

"Over time, I think 5G could enable new experiences that we haven't even dreamed of yet," Kalra says.

According to Kalra, telecom heavyweights Verizon Communications (VZ) and AT&T (T) are just starting to deploy 5G networks, and each plans major build-outs through 2020.

As of September 30, the fund was not invested in either firm, with Kalra instead focused on companies supplying the telecom providers, such as Marvell Technology (MRVL), which makes chips that power 5G infrastructure, and Qualcomm (QCOM), a maker of chips to enable 5G phones.

Learn more about this manager and his fund

Sonu Kalra is portfolio manager of Fidelity® Blue Chip Growth Fund, which held securities mentioned in this article on September 30, 2019. As of this date, Marvell Technology composed 2.47% of fund assets and Qualcomm composed 1.47% of fund assets.

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