BNP Paribas Exane Touts Nokia Corp (NOK) Prospects Amid AI and Data Center Opportunity

Nokia Corp (NYSE:NOK) is one of the best Robinhood penny stocks to invest in. That was evident as BNP Paribas Exane upgraded the stock to “Outperform” from “Neutral” on September 3, setting a price target of EUR4.30. The upgrade comes as the research firm expects the Finnish telecommunications and IT giant to capitalize on the artificial intelligence and data center boom.

BNP Paribas expects the acquisition of Infinera to position Nokia to benefit from AI and data center trends that it has previously bypassed. Similarly, it expects the acquisition to help the company grow its hyperscaler revenues, as they only account for 5% of total revenues.

While power constraints are a drawback amid the AI boom, BNP Paribas expects them to create unique opportunities that Nokia can tap into. It should compel companies to develop medium-sized clusters that are operated in an integrated manner. Such facilities should require additional optical and IP infrastructure that Nokia can tap into.

Amid the opportunities in AI and data centers, BNP Paribas expects Nokia’s revenues to grow 3% faster than consensus estimates next year. It also expects additional margin benefits and synergy realization with the full integration of the Infinera acquisition.

Nokia Corp (NYSE:NOK) is a Finnish telecommunications and IT company that provides network infrastructure, software, and services to telecommunication operators and enterprises globally. It focuses on developing and delivering products for mobile (5G and 4G) and fixed networks, as well as offering software solutions for network automation, management, and cloud services.

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Disclosure: None. This article is originally published at Insider Monkey.