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15 handpicked stocks

Broadband Backbone Builders

Amphenol's $10.5 billion acquisition of CommScope's broadband and cable unit marks a major consolidation in the telecommunications hardware sector. This deal spotlights an investment opportunity in companies providing the essential physical components, like fiber optics and connectors, that form the backbone of 5G and future network infrastructure.

Author avatar

Han Tan | Market Analyst

Published on August 4

Your Basket's Financial Footprint

This basket's total market capitalisation is $120.05B and is strongly anchored by a few large-cap constituents, giving it a generally stable profile.

Key Takeaways for Investors:
  • Large-cap dominance suggests generally lower volatility and closer tracking to broader market performance.
  • Suitably positioned as a core holding within a diversified portfolio, not a speculative trade.
  • Expect steady, long-term value rather than rapid, short-term gains; growth tends to be gradual.
Total Market Cap
  • COMM: $3.46B

  • LITE: $11.56B

  • CLFD: $485.97M

  • Other

About This Group of Stocks

1

Our Expert Thinking

Major consolidation in telecommunications hardware, like Amphenol's £10.5 billion acquisition, signals increased investment in network infrastructure. As the market consolidates and 5G build-outs accelerate, companies providing essential physical components could see heightened demand for their specialised products.

2

What You Need to Know

These companies operate across the telecommunications hardware value chain, producing critical components like fibre optic cables, high-speed connectors, and advanced interconnect systems. They're the foundational firms that build the physical backbone of modern communication networks and 5G infrastructure.

3

Why These Stocks

This basket was carefully curated to group key hardware manufacturers that may be well-positioned to capitalise on heightened industry investment following landmark consolidation deals. Each company plays a vital role in the long-term, cyclical expansion of global digital infrastructure.

Why You'll Want to Watch These Stocks

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Consolidation Creates Winners

Major industry deals like Amphenol's £10.5 billion acquisition often signal the start of broader consolidation waves. Companies that survive and thrive in this environment could emerge stronger with increased market share.

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5G Infrastructure Boom

The global rollout of 5G networks requires massive investment in physical infrastructure. These companies provide the essential hardware components that make next-generation communication possible.

Essential Technology Players

From fibre optic cables to high-speed connectors, these firms build the invisible backbone that powers our digital world. As connectivity demands grow, their specialised expertise becomes increasingly valuable.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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