Telecom operators 'have no choice but to invest' in 5G, making these stocks winners, Bernstein says

Signs of Qualcomm and 5G are pictured at Mobile World Congress (MWC) in Shanghai, China June 28, 2019.
Aly Song | Reuters

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The future profitability of many 5G projects is uncertain, but telecommunications companies 'have no choice to invest' and suppliers will benefit, Bernstein said in a note to clients. 

Technological advances have brought 5G technology even closer to widespread availabililty, and Apple is expected to release 5G iPhones later this year. While the benefits to some consumer-facing companies remains unclear, suppliers are set for a boost, the firm said. 

"While unspoken in the industry, the caution with which most operators are approaching 5G is grounded in fear that it will be at least five years before many of the new use cases start to scale. In the meantime, the deployment of 5G will herald the start of another capex cycle," the note said.