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Why Inseego Stock Was Soaring Today

By Jeremy Bowman - Dec 11, 2020 at 1:16PM

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Word of a new contract in Japan helped drive the 5G technology company's share price higher.

What happened

Shares of Inseego ( INSG 1.30% ), a maker of mobile hotspots and networking equipment for 4G and 5G telephony, were trading higher Friday after the company announced that its 5G MiFi 2000 mobile hotspot was now available in Japan, significantly expanding its presence in that market. The news came just a day after Inseego announced a deal with T-Mobile, showing that the company's momentum is building in 5G.

The stock was up by 10.2% as of 1:10 p.m. EST after gaining 9% Thursday.

A smartphone with 5G written above it in a digital font

Image source: Getty Images.

So what

Inseego said it won its first 5G contract with Sumitomo, a Fortune 500 company. Its flagship 5G solution is now available through Sumitomo's Grape One subsidiary.

"Japan is one of the largest and most strategically important 5G markets in the world, and we're thrilled to be introducing our 5G solutions there with Grape One," CEO Dan Mordor said. "Our mobile broadband solutions are ideally suited for cable companies that understand the appeal of using 5G for high-speed home broadband access."

The company will also expand its presence in Japan by opening up a Japanese subsidiary, and hiring local sales and technical staff in Tokyo.

On Thursday, the mobile networking company said that T-Mobile had selected Inseego's 5G MiFi 2000 as its first 5G mobile hotspot. Inseego's 5G hotspot is also available through Verizon.

Now what

Inseego stock has long been seen as one way for investors to play the 5G revolution , and momentum is clearly building for its 5G products after the latest deals. 

The stock has nearly doubled this year thanks to the shift to remote work and anticipation about the ongoing deployment of 5G networks. Expect Inseego's share price to keep rising as the company announces more key partnerships.

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Stocks Mentioned

Inseego Corp. Stock Quote
Inseego Corp.
$6.26 (1.30%) $0.08
T-Mobile US, Inc. Stock Quote
T-Mobile US, Inc.
$114.98 (1.96%) $2.21
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
$51.39 (-0.06%) $0.03

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