Nokia Corporation NOK recently announced that it has been selected by CoreWeave to deploy its state-of-the-art IP routing and optical transport solutions in the latter’s data centers in the United States and Europe to support high-performance AI infrastructure.

Known for handling compute-intensive workloads and AI-centered applications, CoreWeave requires a networking backbone that ensures rapid and dependable customer access to its services. Additionally, as the demand for generative AI, ML, graphics and rendering VFX is rapidly growing, critical network connectivity is also becoming essential for the company’s cloud infrastructure.

NOK’s Focus on Providing Networking Backbone

Nokia’s advanced solution promises to support CoreWeave’s backbone and edge platforms by delivering super-fast, reliable performance at scale while also managing more than 30% of traffic within the same energy envelope.

Post-deployment, the backbone will feature Nokia’s IP routing and optical transport portfolio, including the FP5-based Nokia 7750 Service Router. The router is known for its extensive routing capabilities, speeds of up to 800Gb/s and strong Ethernet VPN support. For optical transport and data center interconnection across the WAN, Nokia’s 1830 Photonic Service Interconnect solution will be employed. Additionally, to automate network functions and optimize resource management, Nokia’s Network Services Platform will be used.

Increasing Client Base to Drive Performance for NOK

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. 

Nokia is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, the company is transforming the way people and things communicate and connect. These include a seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications and Internet of Things.

With a strong presence in more than 100 countries, the Finnish multinational telecommunication company is expected to benefit from the increasing customer base. This will likely enable the company to generate higher revenues in the upcoming quarters. Improving financial performance is likely to propel the stock upward.

NOK’s Stock Price Performance

Shares of Nokia have gained 6.5% over the past year compared with the industry’s growth of 45.9%.

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NOK’s Zacks Rank and Key Picks

Nokia currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. UI carries a Zacks Rank #2 (Buy) at present. The company offers a comprehensive suite of networking products and solutions for service providers and enterprises. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.

Workday Inc. WDAY carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. 

Airgain, Inc. AIRG currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.

Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.

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