Nokia's Optical Solution Used by i4Networks for Data Center Interconnect

Nokia NOK recently announced that i4Networks has implemented its cutting-edge optical solutions to deliver next-generation optical data center interconnect (DCI) services across the Netherlands and internationally. Notably, the company’s technology is being increasingly adopted by organizations to modernize their network infrastructure.

This innovative DCI platform further reinforces the Netherlands’ status as a key European Internet hub by offering faster, more cost-effective connectivity while supporting the rapid expansion of data centers and increasing cross-border data flows.

Nokia Corporation Price and Consensus

Nokia Corporation price-consensus-chart | Nokia Corporation Quote

Powered by Nokia’s technology, i4Networks’ Software Defined Wave Switching (SDWS) solution enables the activation of network capacity for customers within days, a major improvement over the traditional optical connections that typically take weeks or months to provision. This development marks a significant shift for i4Networks, moving beyond conventional transparent IP/MPLS connections to a more agile, on-demand optical infrastructure.

By extending this agility to the optical layer, i4Networks can offer on-demand service activation at higher capacities with enhanced security, meeting the rapidly growing demands of cloud providers, AI workloads, media services and financial trading platforms.

Utilizing Nokia’s 1830 PSS-8 and 1830 PSI-M optical platforms, the new network enables faster and more reliable interconnection between data centers, while giving i4Networks customers the flexibility to easily scale capacity to 100G or 400G as needed. Additionally, built-in resilience ensures automatic traffic rerouting in case of fiber cuts or other disruptions.

Apart from this, NOK was selected by the City of Superior to provide its advanced fiber and IP solutions as part of ConnectSuperior, the city’s ambitious plan to extend fiber-optic infrastructure to every home and business in September 2025. Also, NOK was chosen by Vortex Group to upgrade its IP edge and transport network across Maharashtra, Goa and Gujarat in India. The initiative aims to boost broadband speeds, extend connectivity to underserved areas and transform Vortex’s infrastructure into a more scalable and efficient system.

Nokia Advances 5G Portfolio & Partnerships

Nokia has been steadily developing its 5G portfolio, strengthening AirScale and advancing the capabilities of its ReefShark chipset. Nokia’s extensive portfolio consists of around 20,000 patents, among which 7,000 are essential for 5G. Its solution enables its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering the easy programmability and flexible automation needed to support dynamic operations, reduce complexity and improve efficiency.

Nokia is continuously striving to expand its portfolio, and its strategic partnership marks a significant step in that direction. Recently, the company announced a collaboration with Supermicro, a global leader in application-optimized total IT solutions, aimed at empowering cloud providers, hyperscalers, enterprises and communication service providers (CSPs) to deploy high-performance, AI-optimized data center networking solutions. Also, the company announced a contract with Extreme Broadband ("EBB") and its subsidiary, Open DC, to enhance the performance and security of Open DC’s AI data centers across Malaysia.

However, the company faces exposure to the highly cyclical telecommunications industry, where periods of heavy investment are often followed by slowdowns, creating uncertainty around its revenue growth. Stiff competition in the wireless equipment market and broader macroeconomic challenges continue to pose additional concerns.

NOK’s Zacks Rank & Stock Price Performance

Nokia currently carries a Zacks Rank #4 (Sell). The stock has gained 8.8% over the past year compared with the Wireless Equipment industry’s growth of 32.3%.

Stocks to Consider From the Computer and Technology Space

Some better-ranked stocks from the broader technology space are Ubiquiti Inc. UI, InterDigital, Inc. IDCC and Microsoft Corporation MSFT. UI sports a Zacks Rank #1 (Strong Buy) while IDCC and MSFT carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

UI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 49.5%. In the last reported quarter, Ubiquiti delivered an earnings surprise of 82.47%. Its shares have surged 96.2% in the past six months.

IDCC earnings beat the consensus estimate in three of the trailing four quarters while missing in one, with the average surprise being 54.27%. InterDigital’s long-term earnings growth rate is 15%. Its shares have jumped 125.2% in the past year.

Microsoft’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.02%. In the last reported quarter, Microsoft delivered an earnings surprise of 8.96%. MSFT’s long-term earnings growth rate is 14.9%. Its shares have inched up 20.3% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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