We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nokia (NOK) Inks 5G Patent Deal With Vivo, Settles Disputes
Read MoreHide Full Article
Nokia Corporation (NOK - Free Report) recently inked a multi-year patent cross-license agreement with smartphone maker Vivo. Per the deal, Vivo is required to make royalty payments to Nokia on mutually agreed terms. The deal is likely to terminate all pending patent litigations between the two companies in all jurisdictions.
A 5G patent cross-license agreement is a legal arrangement where the parties mutually agree to license each other's 5G-related patents and emphasize developing new products and services without violating one another’s intellectual property rights.
The licensing agreement with China-based Vivo is the sixth major deal in the past 13 months, the other collaborations being with Apple, Samsung, OPPO, Honor and Huawei.
The development is likely to sustain Nokia’s licensing business in the long run and solidify its portfolio in the 5G ecosystem.
Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. The company invests in R&D to drive innovation, develop new technologies and maintain competitiveness in the rapidly evolving telecommunications industry across the globe.
It currently has 319 commercial 5G deals with communications service providers globally. It has 110 live 5G networks, both public and private. The 5G portfolio is increasingly gaining traction among enterprise customers.
Moreover, as Nokia progresses toward the conclusion of the smartphone licensing renewal cycle, it is likely to witness healthy momentum in the fields of automotive, consumer electronics, IoT and multimedia. The company is expected to generate an annual net sales run-rate of 1.4 billion to 1.5 billion euros ($1.51 billion to $1.62 billion) in the midterm.
Since 2000, Nokia has invested around €150 billion in R&D, which is composed of around 20,000 patent families, including more than 6,000 patent families declared essential to 5G. This makes the company a leader in the patent portfolio industry. Under fair, reasonable and non-discriminatory terms, Nokia contributes its inventions to open standards in return for the right to license them.
Companies can save on a substantial investment by easily licensing Nokia’s technologies and software and not having to build their own. The collaborations are expected to foster innovations and promote the development of new products and services in the market.
The stock has declined 24.3% in the past year compared with the industry’s fall of 0.3%.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance cloud experience. Arista delivered an average earnings surprise of 12% in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products. It remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%.
NVIDIA is the world leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) 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.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Nokia (NOK) Inks 5G Patent Deal With Vivo, Settles Disputes
Nokia Corporation (NOK - Free Report) recently inked a multi-year patent cross-license agreement with smartphone maker Vivo. Per the deal, Vivo is required to make royalty payments to Nokia on mutually agreed terms. The deal is likely to terminate all pending patent litigations between the two companies in all jurisdictions.
A 5G patent cross-license agreement is a legal arrangement where the parties mutually agree to license each other's 5G-related patents and emphasize developing new products and services without violating one another’s intellectual property rights.
The licensing agreement with China-based Vivo is the sixth major deal in the past 13 months, the other collaborations being with Apple, Samsung, OPPO, Honor and Huawei.
The development is likely to sustain Nokia’s licensing business in the long run and solidify its portfolio in the 5G ecosystem.
Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company’s deal win rate is encouraging, with notable successes in the key 5G markets of the United States and China. The company invests in R&D to drive innovation, develop new technologies and maintain competitiveness in the rapidly evolving telecommunications industry across the globe.
It currently has 319 commercial 5G deals with communications service providers globally. It has 110 live 5G networks, both public and private. The 5G portfolio is increasingly gaining traction among enterprise customers.
Moreover, as Nokia progresses toward the conclusion of the smartphone licensing renewal cycle, it is likely to witness healthy momentum in the fields of automotive, consumer electronics, IoT and multimedia. The company is expected to generate an annual net sales run-rate of 1.4 billion to 1.5 billion euros ($1.51 billion to $1.62 billion) in the midterm.
Since 2000, Nokia has invested around €150 billion in R&D, which is composed of around 20,000 patent families, including more than 6,000 patent families declared essential to 5G. This makes the company a leader in the patent portfolio industry. Under fair, reasonable and non-discriminatory terms, Nokia contributes its inventions to open standards in return for the right to license them.
Companies can save on a substantial investment by easily licensing Nokia’s technologies and software and not having to build their own. The collaborations are expected to foster innovations and promote the development of new products and services in the market.
The stock has declined 24.3% in the past year compared with the industry’s fall of 0.3%.
Image Source: Zacks Investment Research
Nokia currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance cloud experience. Arista delivered an average earnings surprise of 12% in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products. It remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2 (Buy), delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%.
NVIDIA is the world leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) 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.
This Zacks Rank #2 stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.