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Nokia, Supermicro Join Forces for AI-Optimized Data Center Solutions

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Key Takeaways

  • Nokia and Supermicro team up to deliver integrated AI-optimized data center networking solutions.
  • Collaboration combines Supermicro's 800G hardware with Nokia's SR Linux NOS and automation platform.
  • Partnership expands Nokia's enterprise reach through Supermicro's channels, boosting cloud and AI focus.

Nokia (NOK - Free Report) has announced a strategic partnership 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.

As data centers face increasing challenges from the exponential growth of AI and cloud workloads, the need for a new, performance-driven approach to network architecture becomes critical. By placing networking at the core of data center design, this partnership emphasizes performance, scalability and automation as key pillars for future-proof infrastructure. This partnership marks a significant step toward accelerating innovation in IP and data center networks, helping enterprises and cloud providers meet the growing demands of the digital era.

What Does This Collaboration Offer?

This collaboration brings together Supermicro’s advanced 800G Ethernet switching hardware with Nokia’s industry-leading Service Router Linux (SR Linux) Network Operating System (NOS) and Event-Driven Automation (EDA) platform, delivering a fully integrated solution specifically designed for the demands of AI, high-performance computing (HPC) and modern cloud environments.

The combined solution offers customers a pre-validated, turnkey platform that streamlines the entire network lifecycle—from initial design (Day 0), through deployment (Day 1), to ongoing operations (Day 2 and beyond). This approach significantly reduces deployment time, lowers operational costs and enhances overall network efficiency.

Cloud builders worldwide can now build data center networks that are not only highly reliable and secure but also simple to operate. Nokia’s Event-Driven Automation plays a crucial role in improving operational efficiency by reducing manual effort, minimizing errors and optimizing compute resource usage. Furthermore, it enables network-wide automation at scale with consistent performance, proactively resolving issues to enhance reliability and drive down operational costs.

Nokia’s IP Networks Division underscored the significance of this collaboration in validating Nokia’s SR Linux and EDA as the software foundation for modern data center and IP networks. Management pointed out that the partnership expands Nokia’s reach into the enterprise market through Supermicro’s extensive sales channels, perfectly aligning with its strategic focus on cloud, HPC and AI-driven infrastructure solutions.

Nokia is continuously striving to expand its portfolio and its strategic partnership marks a significant step in that direction. Recently, 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. This initiative aligns with the country’s National Cloud Computing Policy and caters to the high standards of the banking and financial services sector, strengthening EBB and Open DC’s position as leading players in Malaysia’s digital infrastructure space.

Apart from these, Nokia’s technology is being increasingly adopted by companies aiming to modernize their networks. In September 2025, 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. Also, Nokia 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.

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 9.6% over the past year compared with the Wireless Equipment industry’s growth of 32.7%.

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Stocks to Consider From the Computer and Technology Space

Some better-ranked stocks from the broader technology space are Ubiquiti Inc. (UI - Free Report) , InterDigital, Inc. (IDCC - Free Report) and Microsoft Corporation (MSFT - Free Report) . UI, IDCC and MSFT carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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 93.9% 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 128.5% 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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