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Nokia (NOK) Liquid-Cooled Solution Makes Commercial Debut

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Nokia Corporation (NOK - Free Report) recently announced the commercial availability of its 5G liquid cooling base station solution — AirScale Base Station — to help telecommunications service providers curtail their power consumption and carbon dioxide emissions. The innovative product offering underscores Nokia’s commitment to combating climate change and making networking businesses more sustainable, especially at a time when network operators are shifting toward experience-driven and automated operations to achieve significant cost savings.

Nokia is reportedly the first equipment vendor to introduce a liquid cooled base station that enables operators to make the networking infrastructure more cost-effective by deploying renewable energy solutions. The company conducts these initiatives under its Zero Emission Solution framework, which aims to modernize a legacy base station into a Single Radio Access Network that can reduce energy consumption by 90% and base station carbon dioxide emissions by up to 80% compared to traditional active air-cooling systems.

Traditional air-coolants utilized in the base stations are quite noisy and require regular maintenance for filter change and re-filling of gases. Nokia’s Liquid Cooling solution aims to eliminate this drawback by capturing heat where it is produced and converting it into liquid. This maintenance-free and virtually silent cooling solution significantly reduces carbon dioxide emissions, making it an ideal choice for large residential areas with several occupants. Its AirScale Base Station’s compact size, high output power and multiband capabilities have made it possible to reduce the site space requirement and support carrier aggregation while enhancing the overall user experience. Impressively, Nokia is part of a select group of companies at the United Nations climate summit and intends to curtail carbon emissions by 50% by 2030.

Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company 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 software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect with each other. These include seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications and IoT.

The company facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation to support dynamic operations, reduce complexity and improve efficiency. Nokia seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.

It remains focused on building a robust scalable software business and expanding it to structurally attractive enterprise adjacencies. Nokia has inked more than 214 commercial 5G contracts across the globe. The company’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions.

Shares of the company have gained 30.2% in the past year compared with the industry’s growth of 14.6%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
 

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A better-ranked stock in the industry is Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered an earnings surprise of 50.7%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 102.7% since March 2021. Over the past year, Clearfield has gained a solid 84.9%.

Sierra Wireless, Inc. carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 58%, on average, in the trailing four quarters.

Over the past year, Sierra Wireless has gained 17.3%. Earnings estimates for the current year for the stock have moved up 68.8% since March 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.

Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2, is another key pick. It has a long-term earnings growth expectation of 16.1% and delivered an earnings surprise of 12.2%, on average, in the trailing four quarters.

Earnings estimates for the current fiscal for the stock have moved up 43.2% over the past year, while that for the next fiscal is up 48.6%. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.


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