"Buy Before June" - Securities Firms Recommend Stocks Expected to Rise Until 2028 [Weekend Money]

Domestic Wireless Communication Equipment Stocks, Including RFHIC
"Uptrend Expected After U.S. Spectrum Auction in June"

With the U.S. spectrum auction scheduled for June, securities analysts have issued positive outlooks on domestic wireless communication equipment stocks.

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Hongshik Kim, a researcher at Hana Securities, stated in a recent report titled "Communication Equipment - Buy Domestic Wireless Communication Equipment Stocks Before June" that "even if stock prices are factored in early, the rally for domestic wireless communication equipment stocks is expected to continue at least until the first half of 2028." He added, "Given the recent rise in stock prices, there is a high possibility that the domestic wireless communication equipment stock rally from 2025 to 2028 will be longer and stronger than the rally from 2018 to 2020."

Kim addressed concerns over a "peak" in U.S. and domestic communication equipment stocks, stating, "It is too early to raise concerns about a peak for domestic and global wireless communication equipment companies such as Ericsson, RFHIC, KMW, Solid, and HFR." He pointed out that the market size for wireless communication equipment is overwhelmingly larger than that for wired equipment, and that multiple significant events are expected. In particular, he noted, "The main spectrum auction in the U.S. is set to begin in June, and the domestic AI RAN business is also expected to take shape after late June." He added, "After the auction, the announcement of the winning telecom companies and the selection of U.S. telecom suppliers in the third quarter are likely, which will attract more investor attention than ever. Major domestic wireless communication equipment companies selected as suppliers can expect strong share price momentum."

Ultimately, this wave of investment in wireless communications is a network investment aimed at the success of physical AI, marking the beginning of a four-year, long-term big cycle that will begin with the buildout of 5G SA in 2027 and continue through the commercialization of 6G in 2030. For this reason, Kim expects the rally in related stocks to continue at least until the first half of 2028.

Meanwhile, Kim recommended substantially increasing equity exposure to U.S. companies for wired optical communications and to domestic companies for wireless communications. In particular, he advised investing in domestic outsourcing wireless communication equipment companies that are strong candidates to supply to Samsung, Ericsson, Fujitsu, and Nokia. The domestic firms he identified are RFHIC, KMW, Solid, LIG Accuver, HFR, and OE Solutions.

This content was produced with the assistance of AI translation services.