We recently compiled a list of the 10 Stocks Gaining Momentum From Key Collaborations. In this article, we are going to take a look at where Nokia Oyj (NYSE:NOK) stands against the other stocks.
The US stock indices are decreasing as investors try to make sense of mixed earnings reports from banks. Donald Trump’s Treasury choice is being grilled by the Senate on tariffs, Fed independence, and tax cuts. LA wildfires are coming under control, though high winds continue to make things uncertain in the region. Amidst all this, it is business as usual for many companies. From tech companies to automotive, every firm is collaborating with others in the industry to add more value for its customers. Some of these partnerships relate to the improvement of services while others act as value additions to both businesses, such as Microsoft and Pearson plc’s partnership on improving education and training.
We compiled a list of 10 stocks that are either surging on such collaborations or have the potential to outperform the market based on business improvements through these collaborations. To come up with our list of 10 stocks that are gaining momentum from key collaborations, we only considered stocks with a market cap of at least $1 billion.
A computer engineer engaging in coding activities in a brightly lit server room.
Nokia Oyj (NYSE:NOK)
Nokia Oyj (NYSE:NOK) is set to add more passive income to its business after completing an agreement with the South Korean tech company Samsung. While the exact terms of the latest agreement are confidential, we do know that Samsung will pay for the deal in the form of royalties. The deal is spread over multiple years and pertains to a patent license agreement for Nokia’s video technology in Samsung’s TV sets.
Nokia enjoys a healthy collection of patents, especially related to 5G technology. However, the company lacks in execution and is often edged out by its rival Ericsson, a Swedish telecommunication company. The 5G equipment maker’s future growth continues to be uncertain amidst declining sales, something that has irked investors for many years now.
In another development, the Finnish firm also signed a partnership in the Middle Eastern region with Zain KSA to address coverage gaps in different regions. This will be achieved using multiple Nokia technologies, including Femto Manager and IP Security Gateway.
Overall NOK ranks 10th on our list of the stocks that are gaining momentum from key collaborations. While we acknowledge the potential of NOK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NOK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
