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The showdown between airlines and 5G over the last few weeks has been making mainstream news headlines, and following them might have you worried that the new broadband protocol is a bust:
But like a lot of things in the five-second news cycle, these sensational sound bites don't really tell the whole story about what's happening.
Of course, it's true airlines have tried to stop the rollout of new 5G equipment out of concern for the impact on some of their planes. It's equally true some of the telecom stocks pushing ultra-broadband tech are down. What isn't being reported is there's a very easy solution to this problem right around the corner.
Both telecom and the airlines are working on this fix as we speak.
This bump in the road notwithstanding, 5G wireless tech is on track for enormous growth. Research and Markets estimates have the sector growing at 58.7% a year to reach $65.49 billion by 2026. It's going to be a must-have in any tech investor's portfolio.
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 sell-off, but let me show you why there's still so much upside ahead...
The 5G Rollout Issue Explained
The Federal Aviation Administration (FAA) has been concerned that the latest 5G frequencies could interfere with the altimeters on older aircraft. As of 2020, the average age of commercial aircraft in North America is about 14 years - the second-oldest, on average, in the world. So, you can see the potential for safety issues to crop up.
On the surface, it sure doesn't look good. But the issue seems to be a lack of communication between the FAA and airlines on one hand, and the FCC and wireless companies on the other, rather than a severe or persistent threat to flight safety.
After all, the same 5G frequencies that are about to be launched here have been in use for a long time in Europe, without any flight safety issues.
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The Europeans' solution is as effective as it is simple: Wireless companies in the region have turned down the power and range of their next-gen broadband 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've promised to keep their airport-adjacent cell 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 don't be fooled into thinking this is going to be an ongoing conflict.
The issue has done nothing to dampen my bullish outlook on 5G. The truth is, there's simply nothing stopping 5G from becoming the dominant technology in telecommunications in the near future.
This Tech Goes Far Beyond Smartphones
The entire world is going 5G for mobile, especially in crowded stadiums, malls, and, yes, airports. That's because its increased signal efficiency means it 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 handheld devices. The technology is also becoming a viable way of getting in-home broadband, especially in areas where pulling physical wires or fiber isn't feasible 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. (NYSE: KEYS) belongs on your moneymaking watchlist. 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 traffic at certain frequencies coexists with other parts of the spectrum, and identify potential security threats.
As the wireless industry builds up its new ultra-broadband infrastructure, Keysight's monitoring tech is going to become crucial. And the company is heavily targeting 5G clients precisely because this technology requires such tight margins to operate at full capacity.
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Clearly, their push is working. After all, the firm boasts 32,000 clients, including:
- All of the 10 top telecom equipment companies.
- Each of the 25 top semiconductor suppliers.
- The 25 top technology companies.
- And 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 semiconductor firms to smartphone makers, to name a few.
For example, their 5G New Radio-ready channel emulation solution allows clients to test their chipsets, network, and other gear in a lab emulating real-world conditions, which five major communications customers have already adopted.
Keysight may sound familiar to you already - 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.
It has since gotten clipped along with the rest of the tech sector, trading about 20% down from its all-time high as of this writing. But with its market position and tech, this will once again be a market-crushing play for your portfolio as soon as the pressure comes off the sector.
As impressive as 5G is, it's not the only technological innovation that has serious profit potential. We have a real revolution coming that could change the way we use and process data forever.
I'm talking about quantum computing. Traditional computers deal in bits, either one or zero. But quantum computers process qubits, which can be both simultaneously. The practical upshot of this development is that quantum computers can crunch data as much as 158 million times faster than classic machines.
Now, this will likely make your computer obsolete - it will probably disrupt every industry on Earth, in fact - but the really good news is I'm projecting this sector will generate $8 trillion in new wealth over 2022 and beyond. Investors who move now can grab a "ground-floor" stake in this game-changing tech - here's how...
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.