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NOK Wins Multi-Billion 5G Deal Extension From Airtel: Stock to Gain?

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Nokia Corporation (NOK - Free Report) recently revealed that it has been awarded a multi-year, multi-billion deal extension by Bharti Airtel (Airtel) to enhance and expand 4G and 5G network infrastructure across key regions of India, leveraging its advanced connectivity and technological solutions.

Digging Deep Into the NOK-Airtel Deal

As part of the agreement, Nokia will deploy equipment from its state-of-the-art industry-leading 5G AirScale portfolio, comprising baseband units and its latest generation of Massive Multiple-Input Multiple-Output (MIMO) radios. This portfolio integrates Nokia’s energy-efficient ReefShark System-on-Chip technology to deliver faster speeds, lower latency and greater capacity that will likely help Airtel meet growing demands, while the Massive MIMO radio supports the diverse deployment and operational needs of mobile network operators. 

Additionally, Airtel will benefit from Nokia's MantaRay network management solution, renowned for its network optimization and automation capabilities. This solution features self-configuring modules that enhance network performance and efficiency, tailored to meet specific operational challenges and growing complexity. The AI-based automation will also facilitate better monitoring and management of the network with fewer people to ensure seamless equipment installation and superior performance.

Will This Deal Extension Drive NOK Shares?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has recently increased. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. The company’s expertise in mission-critical networks is well-established, with deployments across more than 2,600 leading enterprise customers in the transportation, energy, manufacturing, webscale and public sector segments worldwide. 

Nokia has been a key partner to Airtel for more than two decades, helping the company build its 2G, 3G, 4G, and now 5G networks. Their partnership has recently reached a new milestone with the launch of the Green 5G Initiative, aimed at enhancing energy efficiency and reducing carbon emissions in alignment with Airtel’s sustainability goals. This agreement further strengthens their long-standing collaboration, highlighting both companies' shared commitment to innovation and the sustainable growth of network infrastructure in India. 

These advancements are likely to propel the stock with incremental revenue generation and inducement of similar deals from other carriers in the future. The deal is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in India.

NOK’s Stock Price Performance

Shares of Nokia have gained 20.4% over the past year compared with the industry’s growth of 43.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

Plexus Corp. (PLXS - Free Report) sports a Zacks Rank of 1 (Strong Buy) at present. It is a leading provider of electronic contract manufacturing services to original equipment manufacturers (OEMs) in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%. 

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a top supplier of enterprise-level software solutions for human resources and finance management. The company's cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system. 

InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.


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