The showdown between airlines and 5G over the last few weeks has definitely made an interesting story, with airlines actually trying to stop the rollout of new 5G equipment as they believe it could impact some of their planes.
Airlines are actually trying to stop the rollout of new 5G equipment as they believe it could impact some of their planes. And just following the recent headlines from mainstream news outlets like CNN and the New York Times might have you worried that 5G is a bust.
While it’s true that some of the 5G stocks are down on the news – the truth is that a quick solution of lowering the power near airports may solve the problem completely.
In fact, it looks like wireless companies have already won and there is a good reason for that.
5G is an unstoppable trend and while 5G networks have been rolling out since 2020, it’s still growing faster than ever before.
In fact, Research and Markets estimates have 5G growing at 58.7% a year to reach $65.49 billion by 2026.
And I’ve found a perfect supply firm that more than doubled the market’s return since I last recommended it.
Sure, this stock got clipped in the recent tech selloff, but let me show you why there’s still so much upside ahead…
Now then, it turns out the FAA has been concerned that the latest 5G frequencies could interfere with the altitude meters on older aircraft, potentially creating safety issues.
The 5G-airport mess sure doesn’t look good. But it seems to be more an issue of lack of communication between the FAA and airlines on one hand and the FCC and wireless companies on the other than a severe threat to flight safety.
After all, the same 5G frequencies that were about to be launched here have been in use for a long time in Europe, without any flight safety issues.
Over there, wireless companies have toned down the power and range of their 5G transmissions around airports, while airlines have worked on updating their altitude meters.
That’s precisely where we’re going to end up here in the States, too. Wireless companies have delayed their 5G launches by a week or two to give airlines more time to test and adapt. They promised to keep their airport-adjacent 5G towers running with less juice.
That’s why it’s essential to focus on the long run, not daily headlines.
Sure, airlines are much less tolerant of risk than wireless companies, as you’d expect and want. But this is a mere bump in the road.
The entire world is going 5G for mobile, especially in crowded stadiums, malls, and, yes, airports. That’s because 5G’s increased signal efficiency means 5G can connect more people at faster speeds without causing interference.
If you’ve ever tried to use 4G at a concert or big game, you’ll know what I mean. Despite your phone reporting a good connection with full bars, the speed slows down to nothing.
Older standards couldn’t work with the high density of wireless devices we live with today.
But 5G isn’t just for mobile and hand-held devices. The technology is also becoming a viable way of getting in-home broadband, especially in areas where pulling physical wires or fiber is unfeasible because of cost, distance, or low population.
Both for people in rural areas, where there is no current high-speed internet, and for city dwellers who want to get out from under their cable company’s thumb, dedicated 5G home modems can be the solution.
This is why Keysight Technologies Inc. (KEYS) deserves to be on your moneymaking watchlist.
You’re going to start seeing the technology not only in smartphones but in cars, tablets, laptops, smartwatches. You name it.
This buildout means we’re going to need all kinds of infrastructure, from chips and sensors to small antennas and upgraded cell towers.
A spin-off from the storied Agilent Technologies Inc. (A), Keysight provides testing tools for advanced wireless software, chipsets, devices, and networks, which is exactly what’s needed to harness the power of 5G.
The firm’s gear can assess wireless signals across the telecom spectrum, look at how 5G traffic co-exists with other parts of the spectrum, and also identify potential security threats.
And Keysight is heavily targeting 5G clients precisely because this technology requires such tight margins to operate at full capacity.
Clearly, Keysight’s push is working. After all, the firm boasts 32,000, including:
• All of the 10 Top Telecom Equipment Companies
• All of the 25 Top Semiconductor Suppliers
• All of the 25 Top Technology Companies
• 24 of the 25 Top Telecom Operators
With a client roster like that, no wonder that over the last few years, Keysight has logged double-digit 5G order growth.
The firm even uses targeting products to help snag more sales as 5G starts affecting everyone from cellular providers to semiconductors firms to smartphone makers, to name a few.
For example, Keysight’s 5G New Radio-ready channel emulation solution allows clients to test their chipsets, network, and other 5G gear in a lab emulating real-world conditions, which five major communications customers have already adopted.
Now, if Keysight sounds familiar, it’s because I last recommended it back on Oct. 6, 2020. From that time to its peak gain on Dec. 27, 2021, the stock was up 109%.
That’s more than double the S&P 500’s 42.5% return over the period.
Keysight has since gotten clipped along with the rest of the tech sector. But with its market position and tech, it should at least be on your radar.
Because once the pressure is off the sector, this will once again be a market-crushing play for your portfolio.
Cheers and good investing,
— Michael A. Robinson
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Source: Strategic Tech Investor