I enjoy going to horse races whenever I get the chance. I don’t know why, as I really don’t know anything about horses. Even so, I expertly peek at the horses being walked before the race, trying to spot any slight limps or tension, and I think I can deduce which nag will win, naturally after carefully reviewing the statistical pamphlet. I must add that I don’t encourage gambling, and my own stakes are always tenner at most.
But I was reading about Nokia again since five o’clock, and for some reason, these horse races came to mind. If Nokia were a racehorse, you could carefully observe its gait before the race as usual, but on top of that, it would get to take a trial run, and it would have a good dose of natural stimulant in its blood. In other words, a “sure thing,” or should I say “sure sausage,” to be the winner.
In reality, nothing is certain, of course, but the odds are so low right now that I invested in more Nokia shares a couple of times last week.
This massive Ooredoo data center, which is being equipped in partnership with Nvidia, fits into the same narrative. Nokia equipment is needed there for data center interconnects, optical data transmission, IP routing, network automation and management, and AI workload solutions. Probably even more than that, which I just can’t list.
Data centers offer the opportunity to create long-term revenue that lasts as long as the walls of the facility are standing. It’s not just about the initial investments, but expansions, equipment renewals, software licenses, automation development, data security, and who knows what else.
Furthermore, this Nvidia collaboration. Its significance was pondered earlier this year when evidence was lacking, but now we are already seeing concrete proof of what it means. And it means a lot of good for Nokia. Moreover, Asia is a huge, high-growth market for data centers, and the US’s strict stance on Chinese technology is certainly reflected in the demand for Nokia. The beginning is, after all, a bit different than back when Huawei copied and dumped its equipment at under-market prices into mobile networks around the world with massive support from the CCP.
Nothing is certain in today’s world, but you shouldn’t be hasty with Nokia.