Borqs Technologies (NASDAQ:BRQS) stock is surging higher on Thursday after the company reached a licensing deal with Qualcomm (NASDAQ:QCOM).
The deal between the two companies includes a 5G patent licensing agreement. This will allow Borqs Technologies to design and manufacture 5G products based on QCOM’s technology.
Borqs Technologies has an interest in 5G technology as it expects it to spread beyond smartphones. That makes sense as the company’s big focus is on internet of things (IOT) devices. It also has experience in the space with prior smartphone releases.
According to Borqs Technologies, there’s plenty of potential growth coming to the 5G market. This has it estimating the 5G service market will reach $1.67 trillion by the time 2030 rolls around. With it moving into 5G, this opens BRQS stock up to growing alongside the market.
Borqs Technologies includes the following statement in a press release covering its deal with Qualcomm.
“The need to ensure strong, seamless, and uninterrupted connectivity with autonomous vehicles is estimated to drive the adoption of 5G services. Furthermore, robust deployment of 5G network infrastructure is estimated to improve the operational efficiencies in several IoT use cases, including smart homes, smart cities, and industry 4.0.”
BRQS stock is seeing heavy trading with today’s news. As of this writing, more than 184 million shares have changed hands. That’s a massive leap compared to its daily average trading volume of about 8.8 million shares.
BRQS stock is up 33% as of Thursday morning.
Investors seeking more stock market news will want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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