The European Commission took a major vote on how future connected and automated cars in Europe will send information between vehicles and infrastructure in order to communicate about dangerous situations, road works, traffic lights and more.

The European Commission, which wants to set benchmarks for a market that could generate billions of euros in revenues for carmakers, telecoms operators and equipment makers, has said wifi is available now, unlike 5G, and would help road safety.

Volkswagen AG, General Motors, Volvo, and Toyota have been proponents of the draft rules favoring Wi-Fi systems, arguing that the industry needs clarity on what systems to use as soon as possible, and that it currently is the only proven technology.

The ruling is a victory for 5G technology as countries around the world prepare for the rollout of ultra-fast 5G wireless networks, which will power everything from self-driving cars to smart factories.

If the EU ruling would have favored Wi-Fi standards, it would have slowed the advancement of technology across the entire EU as older Wi-Fi technology would be favored over emerging 5G.

The ruling is also a victory for technology neutrality in that the automotive industry is now free to choose the best technology to protect road users and drivers.

Qualcomm is the most likely U.S. stock to benefit from the EU ruling.

There is a resistance zone just above the current price starting at 76.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 73.31, a stop order could be placed below this zone.

While QCOM may be a short-term trade, it does not meet the stringent requirements to make it to the long-term buy and hold portfolio at this time.

Disclosure: I hold no position in QCOM.

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