My Post a few weeks ago got some good traction so figured I would share another. Posted this earlier, but mods deleted. Added a picture of my position so hopefully this one stays up.
- My thesis for Nokia has always been that it's Big Tech not priced like Big Tech. So promising to see all of the re-rating happening lately. Let's hope it continues.
In the meantime, wanted to share a few areas in which I believe Nokia can really grow in the coming years. Nokia is a large well diversified company with a lot going on.
- If anyone accuses this of being AI slop, per my last post - this is from the dome.
Data Centers
Wanted to start with the big boy. Nokia aquiring Infinera created a powerhouse in optical networks, with the scale to power the data center revolution
- What it really did was help Nokia finally get better ins with many hyperscalers.
Nokia is not in the business of building data centers, but it is involved in providing the equipment that goes inside them like routers and switching products.
- Nokia has Data Center deals with Microsoft, Apple, Corresite, Coreweave, Telefónica, and Nscale (whom they are invested in).
- They are also partnered with Nvidia, Supermicro, Lenovo, Dell, Kyndryl, and Fabrinet.
Nvidia buying $1B of $NOK really got the party started. If you could not tell by the partners and customers above, Nokia is part of the Nvidia ecosytem now.
- Marvell and Nokia have been partners for years
- T-Mobile and Nokia helping physical AI applications at the edge
These partnerships are leading to real results too.
- AI & Cloud: grew 49% YOY and are now over 8% of total sales.
- Hyperscalers: booked over $1B billion in new optical orders.
- Optical Networks: surged 20% due to data center demand.
Lastly I will leave you with this video of Elon Musk. Say what you want about Elon, but the man is elite at predicting where tech goes.
- He says "What we call a phone will be an edge node for AI inference with radios to connect. You’ll have AI on the server side communicating with AI on your device."
Space
Alledgedy by 2035, the Space Economy will be worth over $1T. Seeing as SpaceX just IPOed with a valuation over $2T, I'd say there is money to be made in space.
It was common during the meme stock craze, for degens to use "to the moon" when talking about Nokia because NASA chose Nokia to Build First Mobile Network on the Moon.
- Even though Intuitive Machines (LUNR) messed up and tipped over, Nokia did power up their Lunar Surface Communications System and send data back to Earth.
Nokia is also working with Axiom Space to equip space suits with 4G LTE connectivity for the Artemis III mission in 2027.
Nokia is spinning off its space division to become Modul8, wh