Keysight Technologies, Inc. (KEYS - Free Report) recently announced a collaboration with Integrated Device Technologies, Inc. (IDT), a subsidiary of Renesas Electronics Corporation, to accelerate the implementation of 5G New Radio (NR) base stations. This deal marks another milestone for the company in 5G NR solution based high-speed data transfer.
The collaboration is primarily aimed at design development of 5G devices including performance validation and verification of technologies.
Both the companies intend to work together to cater to the demands of beamforming and Massive MIMO (multiple input, multiple output) technologies, essential for achieving 5G standard data speed and lower latency levels.
The latest deal will help Integrated Device Technologies to deploy Keysight’s 5G network emulation solutions to facilitate end-to-end processes solutions to provide the high performance and low-power consumption required for 5G mobile devices.
Both the companies also intend to accelerate 3GPP (3rd Generation Partnership Project) 5G NR specification. On successful implementation of the solution, users will be able to benefit from reliable test results by utilizing 5G network emulation solutions of Keysight.
Keysight’s solutions are enabling mobile operators explore new 5G use cases. This deal bodes well for Integrated Device Technologies as the latest 5G network emulation solutions is enabled to support speed, latency, reliability and the emerging 5G infrastructure.
Promising 5G Trends Boost Prospects
Per ResearchAndMarkets data, the global 5G market is expected to reach $251 billion by 2025 at a CAGR of around 97% from 2020. Further, per MarketsandMarkets estimates, the communication test and measurement market is projected to attain a value of $6.69 billion 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, and self-driving vehicles remain key beneficiaries of 5G.
5G Initiatives to Benefit Top Line
Keysight’s 5G collaborations with the likes of ASUS, Motorola, Verizon Communications (VZ - Free Report) and Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated (QCOM - Free Report) , are enabling it to achieve 5G commercialization-related milestones.
Further, the company has been securing notable customer wins on the back of its strength in the 5G product portfolio, comprising a comprehensive set of test and design solutions. Its solutions enable telecom companies to accelerate 5G deployment.
Keysight’s sustained focus on launching solutions for growth markets like 5G, IoT and high-speed datacenters augurs well for the top line.
Additionally, acquisitions of Ixia, Anite and AT4 Wireless have enriched the company’s 5G solutions portfolio.
Backed by these factors, we believe Keysight is well poised to capitalize on the ongoing upbeat trends in the 5G market and strengthen its competitive position in the domain.
Zacks Rank & Key Pick
Keysight currently sports a Zacks Rank #1 (Strong Buy).
Another top-ranked stock in the broader technology sector is Pure Storage, Inc. (PSTG - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Pure Storage is currently pegged at 19.99%.
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