Keysight Technologies, Inc. (KEYS - Free Report) 5G test and design solutions were recently selected by Qorvo, Inc. (QRVO - Free Report) , a provider of radio frequency (RF) solutions.
The company deployed Keysight’s new Modulation Distortion Analysis test suite to aid Qorvo in accelerating front end module (FEM) on both pre-5G and 5G based base station architecture in production test.
Further, the companies have collaborated to accelerate 3GPP 5G New Radio (NR) specification, for FEMs technology to support frequency bands ranging up to 43GHz.
This deal bodes well for Qorvo’s GaN technology as the latest Modulation Distortion analysis application is enabled to support speed, latency, reliability and the emerging 5G infrastructure.
Notably, Keysight’s new Modulation Distortion Analysis solutions are powered by Keysight's PNA-X Vector Network Analyzer to facilitate end-to-end processes from development to deployment, in turn facilitating the 5G device architecture. The application offers cost-efficient test techniques with high flexibility and control capabilities.
According to Kailash Narayanan, vice president of Keysight’s wireless test group, “Our suite of IC test solutions with the new modulation distortion analysis application, offers the industry’s widest system dynamic range, leading to accurate measurements of parameters such as error vector magnitude (EVM) and adjacent channel leakage ratio (ACLR), which play a significant role in delivering efficient and reliable communications in a 5G network.”
We believe adoption of the company’s 5G testing and design solutions is will bolster the top line. Moreover, the new customer wins are expected to aid the company to expand presence in the United States.
Coming to the price performance, shares of Keysight have returned 18.7% year to date outperforming the industry’s rally of 16.8%.
Encouraging 5G Trends Boost Long-Term Prospects
Per ResearchAndMarkets data, global 5G market is expected to reach $251 billion by 2025, seeing 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.
On the back of these aforementioned factors, we believe Keysight is well-poised to capitalize on the ongoing upbeat trends in the 5G market and also strengthen competitive position in the domain.
Zacks Rank & Key Picks
Currently, Keysight carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Match Group, Inc. (MTCH - Free Report) and Autohome Inc. (ATHM - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Match Group and Autohome have a long-term earnings growth rate of 15.2% and 20.9%, respectively.
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