RadiSys Corporation (NASDAQ: RSYS) is having an overwhelmingly strong day in the market today, and for good reason. The company announced news surrounding its work with regard to a wireless 5G network, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from RSYS, and what we’ll be watching for ahead.
RSYS Gains On 5G News
As mentioned above, RadiSys is having an overwhelmingly strong day in the market today. The gains come after the company issued a press release announcing the delivery of a smart, virtualized RAN Accelerator solution that enables mobile operators to offload compute-intensive operations onto FPGA boards and free up valuable CPU resources on standard x86 platforms.
According to the release, through the use of this offload technique, mobile operators will have the ability to gain 10X performance for virtualized 5G applications running on standard server platforms. Essentially, this RSYS solution helps to overcome performance bottlenecks. In the release, the company said that the solution takes advantage of their RAN software, Napatech’s SmartNICs and Silex Inside crypto technology. Together, the solution provides an industry-best performance vs. cost and performance vs. power platform that scales from 1G to more than 10G on standard servers. Ultimately, the solution will drive a significantly better ROI for mobile operators. In a statement, Neeraj Patel, Vice President and General Manager at the Software & Services arm of RSYS, had the following to offer:
As future telecom network build-outs and re-defining on the paradigms of software-centric networks running on open source components and commoditized servers, they still require high performance and cost efficiency… This joint solution from Radisys, Xilinx and Napatech integrates best-of-breed technologies to deliver a true multi-vendor virtualized RAN Accelerator platform that allows mobile operators to rapidly scale 5G service deployments in an NFV environment, while meeting their requirements for performance, power and cost. Radisys is focused on supporting such evolving RAN architectures to further advance 5G rollouts.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive, as RSYS and their partners are at the forefront of 5G networking technology. So, it’s no surprise that the stock is making a run for the top today. Currently (9:20), RSYS is trading at $1.02 per share after a gain of $0.03 per share (3.03%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RSYS. In particular, we’re interested in following the company’s movements in the 5G mobile networking space, as this seems to be a promising potential source of revenue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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