The 5G revolution, or the fifth generation of cellular infrastructure, offers enormous technological potential for an almost limitless number of industries, from entertainment and communication to autonomous cars and healthcare, and more.
It also offers enormous opportunity for entrepreneurially-minded investors looking to gain exposure to the firms pioneering that innovation.
The ERShares Entrepreneur ETF (ENTR) invests and capitalizes on the entrepreneurial companies leading technological breakthroughs, through exposure to stocks such as NVIDIA (NVDA), in which ENTR has a 3.5% weight.
NVIDIA embodies the entrepreneurial spirit through its consistent drive to “integrate innovation efforts into the organization’s overall strategy,” writes ENTR’s issuer and portfolio manager, ERShares.
How 5G Will Change Everything
5G cell networks promise to be faster, more responsive and have vastly increased coverage over existing 4G networks.
In addition to speed, 5G networks also tout an extremely low latency, the time it takes for a user to click on something, for that to be relayed to the network, for the network to respond, and then finally to send back what the user requested. Current latency on existing networks averages around 20 milliseconds, while 5G reduces that to around a millisecond, a number that is bound to be reduced even further.
The implications for 5G users to communicate with one another and with technology is almost limitless, enabling everything from real-time robotic-guided surgeries, to a network of autonomous cars communicating and reacting instantaneously, to latency-free video communications.
5G networks also are able to connect a larger breadth of devices, a necessity to enable artificial intelligence applications and an “Internet of Things.”
NVIDIA: Leading the 5G Charge
NVIDIA is just one company that offers exposure to the 5G theme.
As a computer hardware and chip maker, NVIDIA has been at the forefront of the 5G revolution from the beginning, and continues to drive new innovations.
For example, in mid-April, Nvidia announced that it would partner with Fujitsu, Google Cloud, Mavenir, Radisys, and Wind River to develop an AI-on-5G platform that would “speed the creation of smart cities and factories, advanced hospitals and intelligent stores.”
Despite its size—NVIDIA now has a market capitalization of $350 billion—the firm still has plenty of room to grow.
In February, NVIDIA reported its sales were up 61% year-over-year, per CNBC, despite a global semiconductor shortage that impacted supply chains. The company also beat analysts’ revenue and earnings estimates.
NVIDIA’s next quarterly earnings report will be on May 26th.
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