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Keysight's 5G Emulation Solutions Enable 8K Video Streaming

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Keysight Technologies, Inc. (KEYS - Free Report) is witnessing growing adoption of 5G emulation solutions. In fact, MediaTek is showcasing 8K video streaming in a smart TV in collaboration with the company, at CES 2020.

The company’s 5G emulation solutions will be utilized by MediaTek’s 5G mobile SOC, Dimensity 1000, to validate and set up a 5G new radio (NR) connection.

Moreover, Keysight’s solutions will enable MediaTek’s modem to deliver data rates of 1 Gbps (or gigabit per second), which will allow 8K video streaming without a wired connection.

Advancements in display technology and evolving demand for larger TVs with advanced resolution support are driving the demand for 8K video streaming. This, in turn, calls for faster data transmission speed being validated by a reliable Internet connection, which bodes well for Keysight.

The latest application of Keysight’s 5G emulation solutions is a testament to the diversified use cases of its robust 5G offerings.

This incremental adoption of the company’s 5G testing and design solutions, from wireless device makers, is expected to drive the top line in the days ahead.

Further, expanding collaboration with MediaTek is likely to aid the company in expanding presence in Asia Pacific. Notably, Keysight is enabling MediaTek to accelerate validation processes for chipsets pertaining to mmWave and sub-6GHz frequency bands.

Growing Demand of 5G Validation Solutions: A Key Catalyst

Robust collaborations and strategic deals are helping Keysight to enhance electronic design and testing instrumentation solutions. This is instilling investor confidence in the stock as evident from its robust price performance.

Notably, shares of Keysight have gained 50.7% in the past year, outperforming the industry’s rally of 45%.

Moreover, the company is well poised to capitalize on strong growth in the wireless ecosystem primarily triggered by advancement in 5G investment.

Gartner predicts 5G wireless network infrastructure revenues to hit $4.2 billion in 2020, up 89% over projected revenues of $2.2 billion in 2019. Moreover, per Gartner, investments in 5G NR network infrastructure is expected to account for 12% of the total wireless infrastructure revenues of CSPs or (communications service providers) in 2020, from anticipated 6% in 2019.

This accelerated deployment of 5G in 2020 positions Keysight well to benefit from 5G NR network collaborations with Qualcomm, Xilinx and AT&T. This, in turn, will also help the company in fortifying presence in the global 5G network emulation market.

Additionally, tie-ups with fabless semiconductor companies engaged in providing 5G chipsets, like UNISOC, MediaTek, among others, enhances the company’s prospects in the 5G domain.

Zacks Rank & Other Key Picks

Currently, Keysight carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader sector are 2U, Inc. (TWOU - Free Report) , Synopsys, Inc. (SNPS - Free Report) and Garmin Ltd. (GRMN - Free Report) . All the three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for 2U, Synopsys and Garmin is currently pegged at 20%, 12.76% and 7.35%, respectively.

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