Borqs Technologies Inc. (BRQS) stock has continued its uptrend into today’s premarket with shares adding a further 4.45%, on April 21. At the last check, the stock was trading at $0.3284 apiece while the number of shares exchanged was 1.7 million. BRQS was able to increase by a nice 31.11% in the prior trading session to close the day at $0.3144 a share.
The company recently reached a licensing deal with Qualcomm to design and manufacture 5G products based on QCOM’s technology. Investors seem to have continued their positive response to the news since there is no other announcement. Moreover, stock sentiment and social media chatter might also have a role in the bullish trend.
BRQS and QCOM Agreement
The company recently revised its licensing agreement with QCOM, which now includes a 5G patent licensing agreement as well. This will allow BRQS to develop 5G products based on the latest technologies of QCOM.
This new deal came soon after the company won a design from the largest mobile operator and a Fortune 500 company in India. As per the contract, the company will develop a Linux laptop leveraging the Qualcomm chipset with cellular connectivity. Comparatively, most laptops today support Wi-Fi connectivity only and run with Windows OS.
BRQS is a company with paws in software technology and innovative clean energy with market including 5G services tech, IoT, EV & smart home technologies as well as solar energy.
Analyzing the global 5G services market, it is expected to register a CAGR of 52% from 2020 to 2030. According to a study by Grand View Research, the market is expected to reach $1.67 trillion by 2030. While technological advancement is a key factor contributing to the growth, the ever-increasing demand for enhanced mobile connectivity is expected to boost the market further. As the world becomes more and more dependent on technology and the internet, demand for higher data speeds is rising exponentially.
How Does It Look for BRQS?
While the 5G market alone is full of huge opportunities, BRQS has many reasons to be considered a company poised for much growth. While its micro-electronics business continues to grow, the company’s solar energy storage unit also has great prospects as fuel prices surged. Not only this, but the company is even working on developing EV chargers and smart home products with its subsidiaries.
BRQS stock after having added a huge 84.62% in the past five days has continued its rise in today’s premarket. Investors are still celebrating its new licensing agreement which includes 5G. But given the huge rally, it seems the stock will most likely fall under corrections soon.