Can Nokia's Saudi AI Network Automation Expansion Drive Growth?
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Can Nokia's Saudi AI Network Automation Expansion Drive Growth? Zacks Equity Research Wed, September 2, 2026 at 11:53 AM EDT 2 min read NOK NOK ERIC CSCO Nokia Corporation NOK has opened a new research and development center in Riyadh, Saudi Arabia, strengthening its footprint in artificial intelligence (AI)-powered network automation and orchestration. The company will develop advanced software solutions for communications service providers and enterprises in both local and global markets. Nokia's latest facility will focus on technologies such as Service Management and Orchestration, Self-Organizing Networks, Autopilot and rApps. These solutions are designed to help communications networks become more autonomous by enabling them to self-configure, self-heal and optimize performance while improving operational efficiency and reducing energy consumption. The investment will support research into AI-native 6G technologies and contribute to the development of next-generation communications infrastructure. It will also strengthen local technology and software expertise by creating high-value engineering and research opportunities and offering training programs, boot camps and certifications in AI and automation. By developing innovative software in Saudi Arabia for deployment across its global customer base, Nokia aims to expand its technology portfolio and create exportable "Made in Saudi" solutions. The initiative is likely to enhance the company's research capabilities in AI, automation and advanced communications networks. Nokia faces stiff competition from Ericsson ERIC and Cisco Systems, Inc. CSCO. Ericsson is advancing its AI strategy with AI-powered RAN solutions to improve network performance, automation and energy efficiency. The company is developing AI-ready infrastructure and working with partners on AI applications for 5G and 6G networks. Ericsson is integrating AI into its network platforms to help operators manage traffic and automate operations more efficiently. Cisco is expanding its AI strategy by developing secure AI infrastructure and networking solutions for large-scale AI workloads. The company is advancing agentic AI tools to automate and simplify network, security and IT operations. Cisco expanded its Secure AI Factory with NVIDIA to meet growing demand for AI computing and data center infrastructure. Nokia shares have soared 126.7% over the past year compared with the industry's 25.1% growth. From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.27, below the industry tally of 4.86. Earnings estimates for 2026 have decreased 2.5% to 39 cents over the past 60 days, while those for 2027 have remained static at 50 cents. Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nokia Corporation (NOK) : Free Stock Analysis Report Ericsson (ERIC) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com).
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