5G Newsletter: What are the thematic opportunities in 5G?

IHS Markit estimates that 5G will help create over $13 trillion of economic growth and 22 million new jobs, globally, between now and 2035 . At Neuberger Berman, we believe that 5G connectivity is potentially one of the broadest and most important growth investment themes seen for decades.Watch this video which YT Boon, Director of Research - Asia, discusses the investment opportunities in 5G.

Source: GSMA Intelligence “The Mobile Economy 2020”

The demand for 5G has accelerated as a result of COVID-19. With increasing trends of work from home, online education and telehealth, wireless data usage has increased significantly. 5G has become a must have given capacity constraints in the network.

We continue to see strong capex related to 5G and data center despite concerns about COVID-19. According to the latest report from GSMA Intelligence, 5G network investment is estimated to reach ~$900 billion over the next five years.

Source: Lumentum

Lumentum is a leading manufacturer in leading-edge optical network components that enable faster optical network transmissions between 5G base stations and data centers. The company is also a leading supplier of optical laser components for 3D sensors used for facial recognition in high-end smartphones.

In 5G network infrastructure, with the acquisition of Oclaro, Lumentum is the #1 player in terms of technology leadership and market share in ROADM, a key optical networking switch technology to enable higher speed networking for 5G networks and internetworking between data centers.

In 3D sensing, other than facial recognition in smartphones, Lumentum will also be enabling augmented reality technologies in upcoming 5G smartphones through its Time-of-Flight 3D sensing technologies.

We would like to hear from you any questions you may have on the 5G investment opportunities.

We look forward to sharing more.