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These chip stocks will pop on 'the ultimate reopening theme': Bank of America

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A shopper walks past an ad for Apple's iPhone 12 outside a store in Hong Kong on May 24, 2021.Several "top" semiconductor stocks are set to benefit from whatSemiconductors, or chips, are vital components of smartphones and are also part of the infrastructure needed for 5G technology — the next generation of mobile internet offering extra-fast download and upload speeds.

"5G could be the ultimate 'reopening' theme, as consumers venture out and demand faster cellular broadband coverage and capacity versus last year's dependence on Wi-Fi," the bank's analyst, led by Vivek Arya, wrote in a note published Wednesday. Only around 20% of smartphones had 5G technology last year, but this is set to increase to 40% in 2021, the bank estimated.

 

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