Nokia Corporation NOK recently revealed it has secured a five-year extension of its agreement with Microsoft, strengthening its position as the key supplier for Azure cloud infrastructure. The deal will accelerate Microsoft’s global footprint expansion initiatives and effectively support massive growth in compute workloads.
SONiC (Software for Open Networking in the Cloud) is an open-source network operating system extensively used by large-scale cloud data centers and service providers. Nokia boasts a strong research and innovation foundation on SONiC (Software for Open Networking in the Cloud) capabilities. Over the past six years, MSFT has collaborated with Nokia engineers to develop routers running based on SONiC. The recent agreement is built on this existing partnership around open-source SONiC technology.
Nokia is set to supply its 7250 IXR-10e platform, which provides multi-terabyte-scale interconnectivity to address the growing bandwidth demands within Microsoft datacenters. Nokia will also deploy SONiC-based routers and data center switches to facilitate Microsoft’s transition to 400GE connectivity from 100GE. These advanced solutions will augment the speed and reliability of Microsoft’s data center infrastructure, enabling it to maintain a competitive edge in a rapidly growing cloud service market.
Will This Venture Drive NOK’s Share Performance?
The deal will expand Nokia’s global footprint to over 30 countries and also strengthen the company's position as a strategic and reliable supplier for tier-one hyperscale companies like Microsoft. With the surging demand for general compute and data traffic, enterprises worldwide are looking to enhance their data center infrastructure to improve network capacity. With its comprehensive data center portfolio, Nokia is well-positioned to gain from this emerging market trend.
NOK’s Stock Price Performance
Shares of Nokia have gained 18.4% over the past year compared with the industry’s growth of 39.1%.
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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.
Zillow Group, Inc. ZG carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.
InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, which are used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. WDAY carries a Zacks Rank of 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. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.
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Nokia Corporation (NOK) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
Zillow Group, Inc. (ZG) : Free Stock Analysis Report
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