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You may have never heard of Globalstar (NYSEMKT:GSTAR), but you will likely know the company behind its rise. In fact, that company commands huge market presence. So what is that company? And why is GSAT stock racing 50% higher today?
To start, Globalstar is a Louisiana-based provider of mobile satellite services. These services include two-way voice and data products, SPOT consumer retail products and even commercial internet of things (IOT) solutions. Importantly, one of these IOT satellite solutions is behind its more-than-50% rally today.
So what else do you need to know? One of the Globalstar solutions is the Band n53. This is a mid-band spectrum that the company says is good for customers who would not otherwise have access to a licensed spectrum. Today, one big name company announced that it really liked this solution. In fact, Qualcomm (NASDAQ:QCOM) shared that it was including the Band n53 in its latest chip.
On Tuesday, Qualcomm announced the launch of its newest chip, which it is calling the X65 modem. Investors should note that this is its fourth generation of 5G chips, but it is the first that can reach download speeds of 10 gigabits per second. That is approximately 10 times faster than peak download speeds on previous LTE networks. And perhaps most importantly for investors, the X65 modem represents a new business endeavor for Qualcomm.
As Stephen Nellis wrote for Reuters, Qualcomm is eyeing 5G markets beyond smartphones with this chip. In fact, the company is hoping that customers will use this chip to connect devices to 5G networks, and that its chip could help it rival Wi-Fi for home and business internet use. And building on that, Qualcomm also plans to target commercial and industrial applications with this chip.
The Qualcomm Chip and GSAT Stock
So where do Globalstar and GSAT stock come in? It turns out that the Qualcomm X65 model includes the Globalstar Band n53. This comes after Nokia (NYSE:NOK) similarly deployed this ecosystem, and expands the ecosystem to a wide range of popular consumer electronics.
Other things to like? Globalstar says that Qualcomm is its latest partner as it develops this ecosystem, and that the X65 modem will help really ramp up 5G adoption and deployment. As investors consider what the X65 means for 5G and for QCOM stock, Globalstar also stands to benefit.
In other words, Qualcomm is making a big move as a business and representing great 5G progress through its latest chip. Globalstar is helping to enable that with its own innovation. Investors who want a “picks and shovels” play may then turn to GSAT stock. As we continue to learn more about what this means for Globalstar, make sure to keep the under-the-radar company on your watch list.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.