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Can Nokia's Extended 5G Deal With Taiwan Mobile Drive Future Growth?

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Key Takeaways

  • Nokia will deploy AirScale baseband and radio tech to expand Taiwan Mobile's AI-powered 5G network.
  • NOK will add AI tools to automate operations, predict hardware issues and improve network reliability.
  • Nokia's upgraded network will support slicing, RedCap and AI-driven traffic with better energy efficiency.

Nokia Corporation (NOK - Free Report) has strengthened its long-standing relationship with Taiwan Mobile through a new 5G agreement to accelerate the rollout of artificial intelligence (AI)-powered mobile networks across Taiwan. The partnership reflects Nokia's commitment to advancing AI-enabled 5G infrastructure across the globe.

Per the agreement, Nokia will deploy its latest AirScale portfolio, including next-generation baseband platforms and advanced radio technologies. The deployment is expected to increase network capacity, improve uplink performance and prepare the operator's network for rising AI-driven data traffic and advanced 5G services.

The company will also introduce AI software to automate network operations, predict potential hardware issues and improve overall reliability through its MantaRay Self-Organizing Networks and Predictive Hardware Analytics solutions. In addition, AI-based energy management tools will optimize power usage based on network demand, helping lower operating costs.

The upgraded infrastructure will support advanced 5G features such as network slicing and Reduced Capability, enabling new services for businesses and consumers. By combining advanced network equipment with AI software, Nokia is likely to benefit from increasing demand for faster, smarter and more energy-efficient networks.

How Are Competitors Performing?

Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson continues to strengthen its 5G portfolio with new AI-powered network solutions for telecom operators. The company is focusing on improving network performance, automation and energy efficiency through AI technologies. Ericsson's latest solutions are designed to support AI-native 5G services and help operators meet growing data traffic demands.

Cisco continues to expand its private 5G offerings to help enterprises deploy secure and reliable wireless networks. The company's cloud-managed Private 5G platform simplifies network deployment, management and integration with existing Wi-Fi and IoT infrastructure. Cisco is focusing on open, cloud-native 5G solutions to help businesses improve connectivity and accelerate digital transformation. 

NOK’s Price Performance, Valuation & Estimates

Nokia shares have soared 140.5% over the past year compared with the industry’s 37.4% growth.

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From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.7, below the industry tally of 4.83.

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Image Source: Zacks Investment Research

Earnings estimates for 2026 have remained static at 40 cents over the past 60 days, while those for 2027 have increased 4.2% to 50 cents.

Zacks Investment Research
Image Source: Zacks Investment Research

Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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