Keysight & Qualcomm's New Milestone to Propel 5G Deployment

Keysight Technologies, Inc. KEYS in collaboration with Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated QCOM recently secured a milestone in 5G New Radio (NR) technology based high speed data transfer in standalone (SA) mode.

Keysight’s robust 5G network emulation solutions and smartphone form-factor test device were leveraged in order to achieve the milestone. Meanwhile, Qualcomm Technologies’ 5G modem and antenna modules were utilized to realize the feat.

On successful implementation of the solution, Qualcomm’s modem users will benefit reliable test results by utilizing 5G network emulation solutions of Keysight. The improved modem performance and speed is another positive.

Keysight’s solutions are enabling mobile operators explore new 5G use cases. In this regard, the latest high speed data transfer in standalone mode is aimed at assisting mobile operators to offer improved Mobile Broadband (eMBB) services.

Notably, Keysight’s 5G network emulation solutions facilitate end-to-end processes from development to deployment, accelerating the 5G device architecture. The solutions offer cost-efficient test techniques with high flexibility and control capabilities. Moreover, the company’s 5G network emulation solutions are deployed on E7515B UXM 5G Wireless Test Platform which is 3GPP Release 15 compliant.

Coming to the price performance, shares of Keysight have returned 44.4% year to date outperforming the industry’s rally of 24.4%.

Accelerated 5G Commercialization: A Key Catalyst

Accelerated commercialization of 5G (likely to commence as early as the first half of 2019) favors the prospects of Keysight’s 5G network emulation solutions. The company has been securing notable customer wins on the back of its strength in robust 5G product portfolio comprising comprehensive set of test and design solutions. The company’s solutions enable telecom companies accelerate 5G deployment.

Additionally, the acquisitions of Ixia, Anite and AT4 Wireless have enriched the company’s 5G solutions portfolio.

Per ResearchAndMarkets data, global 5G market is expected to reach $251 billion by 2025, witnessing a CAGR of around 97% from 2020. Further, per MarketsandMarkets estimates, communication test and measurement market is projected to attain a $6.69-billion value by 2020 at a CAGR of 9.3% from approximately $4.28 billion in 2015.

Intensive infrastructure investments in 5G push and positive trial testing results are tailwinds in this regard. Smart connected homes, hospitals, factories and cities along with self-driving vehicles remain key beneficiaries of 5G.

We believe Keysight is well-poised to capitalize on the ongoing upbeat trends in the 5G market along with strengthening competitive position in the domain.

Zacks Rank & Other Stocks to Consider

Keysight carries a Zacks Rank #2 (Buy).

Cadence Design Systems, Inc. CDNS and Intel Corporation INTC are some other stocks in the broader technology sector worth considering. Both the stocks sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Cadence and Intel is pegged at 12% and 8.4%, respectively.

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