© Reuters. 2 Foreign Telecom Stocks to Buy Now
The telecom industry fared well during the pandemic by introducing game-changing solutions and by commercial deployment of 5G. With the under-resourced domestic semiconductor industry holding back U.S.-based telecom operators, foreign players Nippon Telegraph and Telephone (OTC:) Corporation (NTTYY) and América Móvil (AMX) are expected to perform better. Read on for more details.The telecom industry has been evolving rapidly since last year to provide high-speed network connectivity to keep up with the heightened market demand. Companies have introduced game-changing solutions, such as the 5th generation (5G) technology and artificial intelligence (AI)-backed conversational platforms to meet the demand for high-speed connectivity and enhanced customer experience.
Furthermore, amid the ongoing 5G race, telecom giants have been commercially deploying 5G to secure and/or maintain high market shares. With next-generation connectivity deployment and constant innovation, the global telecom market is expected to reach $2713.53 billion in 2021, growing at a 6.2% CAGR.
The current global semiconductor shortage and trade restrictions with major producers such as China have been significant headwinds for the domestic telecom industry. Conversely, foreign operators Nippon Telegraph and Telephone Corporation (NTTYY) and América Móvil, S.A.B. de C.V. (AMX) have demonstrated impressive performance and we think are likely to grow further in the coming months.
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