The Rise of 5G Standalone (SA) and Its Impact on Telecom and Cloud Infrastructure Markets

The rapid adoption of 5G Standalone (SA) technology is reshaping the global telecommunications and cloud infrastructure landscapes, creating unprecedented opportunities for investors. As the world transitions from non-standalone (NSA) 5G to fully independent 5G SA networks, the demand for advanced infrastructure, cloud integration, and semiconductor innovations is surging. This shift is not merely an incremental upgrade but a structural transformation that will redefine connectivity, edge computing, and AI-driven applications. For investors, the key lies in identifying companies best positioned to capitalize on this seismic shift.

The Telecom Equipment Providers: Ericsson and Nokia in the 5G SA Race

Ericsson and Nokia remain the dominant players in the 5G SA infrastructure market, despite facing macroeconomic headwinds. Ericsson's $14 billion AT&T OpenRAN contract in 2023 has solidified its position in North America, where 44% of its Q2 2025 sales originated. Its focus on AI-driven network automation and defense-sector partnerships, such as the establishment of Ericsson Federal Technologies Group, underscores its strategic pivot toward high-margin, mission-critical applications. However, Ericsson's organic sales growth in Q2 2025 was modest at +2%, reflecting broader industry caution in RAN investments.

Nokia, meanwhile, has revised its 2025 profit forecast downward due to currency fluctuations and U.S. tariffs, yet it has gained traction in private 5G networks. Projects like Memphis Light, Gas and Water's wide-area private 5G network and the Thames Freeport in the UK demonstrate its ability to monetize niche markets. Nokia's acquisition of Fenix Group and partnerships with defense contractors like Lockheed Martin further position it to capture growth in secure, high-performance connectivity.

Cloud Infrastructure: AWS, Microsoft, and Google's 5G-Cloud Convergence

The integration of 5G SA with cloud infrastructure is unlocking new frontiers in edge computing and AI. Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are leading this charge, with AWS's Wavelength zones and Microsoft's Azure Edge Zones enabling low-latency applications. In Q1 2025, global cloud infrastructure spending hit $94 billion, with AWS, Microsoft, and Google collectively commanding 63% of the market.

Google Cloud's Q2 2025 performance was particularly striking, with a 32% year-over-year revenue increase driven by AI workloads. Microsoft's AI partnerships, including its $10 billion annual run rate with OpenAI, and Azure's 33% year-over-year growth highlight its dominance in AI-driven cloud services. AWS, despite a slight market share decline to 29%, continues to expand its global footprint, with a $4 billion investment in a new Chilean cloud region.

Semiconductors: Qualcomm and Intel Powering 5G SA's Hardware Revolution

The semiconductor sector is the unsung hero of 5G SA adoption. Qualcomm's advanced chipsets for RedCap IoT and its expansion into the 5G RAN market, particularly in Vietnam, position it as a critical enabler of cost-effective, high-performance networks. Intel's focus on edge computing and AI-optimized data centers complements 5G SA's need for real-time processing and low latency. Both companies are addressing the technical and economic barriers to SA deployment, from network virtualization to energy-efficient hardware.

Qualcomm's strategic inroads into regions dominated by Huawei and Ericsson, and Intel's partnerships with network operators, underscore their roles in democratizing 5G SA access. With the 5G SA infrastructure market projected to grow at a 25% CAGR to $75 billion by 2033, these semiconductor leaders are poised to benefit from sustained demand.

Strategic Investment Opportunities

The 5G SA ecosystem presents a multi-decade growth story, but investors must navigate near-term volatility. For telecom equipment providers, Ericsson and Nokia offer exposure to the foundational infrastructure of 5G SA, albeit with risks tied to currency and trade policies. Cloud infrastructure players like AWS and Microsoft Azure provide high-growth, AI-driven opportunities, while Google Cloud's momentum suggests undervalued potential. Semiconductor firms such as Qualcomm and Intel are essential for long-term exposure to hardware innovation.

Investors should prioritize companies with diversified revenue streams, strong R&D pipelines, and strategic partnerships in high-growth sectors like defense, AI, and edge computing. The Asia-Pacific region, where 51% of the 5G SA market resides, remains a critical growth engine, but North America and Europe's smart city and industrial IoT initiatives should not be overlooked.

In conclusion, the rise of 5G SA is not just a technological leap—it is a reconfiguration of global connectivity and data ecosystems. For those with the patience and insight to invest in the right players, the rewards could be transformative.