According to Bank of America and Merrill Lynch, the market for 5G semiconductors will boom to nearly $19 billion by 2022, up from $593 million in 2018.
Three months ago, I wrote a post about Viavi Solutions,
Are You Ready For 5G??? - Part 6
Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military, and avionics customers worldwide. And it just so happens to be 1 of 2 players in the space that makes 5G testing gear.
Viavi Solutions reported their quarterly earnings two months ago. Both revenues and earnings beat expectations. They also raised guidance as well. What I like about Viavi is their market cap is only $3.5 billion, so they are somewhat a baby given investors an opportunity to ride the 5G wave.
Today, I want to introduce the #1 player that makes 5G testing gear.
Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, and electronic industries in the Americas and the Asia Pacific.
New 5G network access equipment must deliver broader bandwidths, higher frequencies, lower latencies, and enable machine-to-machine communication necessary Internet of Things (IoT). Also, as the standard evolves, so do the requirements of your test and measurement solutions. Lastly, the transition from 4G to 5G will require 4G and other wireless communications systems without causing interference.
Last month Keysight Technologies reported earnings of their own.
Keysight (KEYS) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.01 per share a year ago. This quarterly report represents an earnings surprise of 12.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Keysight shares have added about 71.2% since the beginning of the year versus the S&P 500's gain of 25%.
This one has run up a bit too much and a bit too fast. However, if price does pull back to the weekly demand at $85 , the chart suggests to go long.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.