Keysight (KEYS) Extends Partnership With AAC Technologies

Keysight Technologies, Inc. (NYSE:KEYS) announced the extension of its alliance with AAC Technologies, a leading provider of advanced miniaturized technology, for validation of new antenna designs in 5G new radio (NR) devices.

Markedly, AAC specializes in 5G radio frequency front-end integrated components for the global wireless market. The company’s solutions accelerate market introductions of high performance 5G products in nearly any form factor. These solutions ensure compliance with the latest 5G standards on a compact wireless platform, by addressing diverse global spectrum requirements.

Earlier in 2019, Keysight teamed up with AAC Technologies for introducing high-performance 5G mmWave front-end solutions for next generation mobile phones and base stations.

Markedly, Keysight’s suite of 5G emulation and over-the-air (OTA) test solutions support regulatory radio frequency (RF) testing of 5G mobile devices in conducted as well as radiated test environments across frequency 1 (FR1) and FR2 (mmWave).

Keysight Technologies Inc. Price and Consensus

Solid Growth Prospects in 5G

Per ResearchAndMarkets data, the global 5G market is expected to reach $277 billion by 2025 at a CAGR of around 111% between 2019 and 2025.

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

Keysight boasts a robust 5G portfolio. In past three years, Keysight witnessed a CAGR of more than 60% in order growth in 5G domain.

The company’s 5G product design validation solutions ranging from Layer 1 to 7 enable telecom help semiconductor companies to accelerate their 5G initiatives. Further, Keysight’s 5G network emulation solutions facilitate end-to-end processes from development to deployment, which accelerates the 5G device architecture.

Moreover, Keysight’s 5G collaborations with the likes of ASUS, Motorola (NYSE:MSI), Verizon Communications (NYSE:VZ) and Qualcomm Technologies, Inc. — a subsidiary of Qualcomm Inc. (NASDAQ:QCOM) — are enabling it to achieve 5G commercialization-related milestones. Additionally, acquisitions of Ixia, Anite and AT4 Wireless have enriched the company’s 5G solutions portfolio.

Backed by these factors, Keysight is well poised to capitalize on the ongoing upbeat trends in the 5G market and strengthen its 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 Qorvo, Inc (NASDAQ:QRVO) . You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Qorvo is currently pegged at 11.9%.

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