Will Nokia's Quantum-Safe Mobile Protection Add Value to NOK Stock?

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Nokia Corporation NOK recently showcased the industry’s first quantum-safe IPsec network cryptography techniques to secure mobile networks against potential threats posed by quantum computing. The demonstration was conducted on the mobile network of Turkcell, the leading mobile phone operator in Turkey, utilizing Nokia’s globally deployed IPsec Security Gateway solution.

This quantum-safe and 3GPP-compliant solution delivers quantum-safe secure network connectivity by proactively addressing the evolving landscape of network security and ensuring the resilience of mobile communications well into the future.

NOK’s IPsec Security Gateway: A Potential Gamechanger?

Leveraging quantum mechanics phenomena, quantum computing can perform complex calculations at a faster speed. It creates multi-dimensional spaces to represent very large problems and enables users to deploy algorithms to translate complicated problems into understandable forms. The realm of quantum computing has made traditional cryptography vulnerable to powerful quantum attacks, which are capable of breaking conventional cryptographic protections. Consequently, as quantum computers continue to advance, it has become imperative that networks evolve to counteract these risks.

Nokia’s IPsec Security Gateway has set a benchmark for network security with a defense-in-depth crypto-resilient approach. The IPsec Security Gateway sets up secure tunnels between network endpoints and encrypts traffic so that it can pass securely across these tunnels. It can use digital certificates for authentication to maintain data integrity, which is the cornerstone for the rapid digital transformation of societies, and for the continued growth of the global digital economy.

Key Takeaways From NOK-Turkcell Demonstration

The collaborative testing validates secure and trusted quantum-safe IPsec protection against network security risks. The trial represents a significant milestone in the evolution of network security by showcasing a state-of-the-art defense mechanism against the dynamic security threat landscape. In addition, the demonstration ensured that data remains protected as the landscape of technology evolves in the future, providing confidence to end users as well as carriers.

Will NOK Stock Benefit?

The successful demonstration reinforces Nokia’s leading position in network security, particularly within the mobile telecom industry. The implementation of quantum-safe cryptography positions Nokia at the forefront of data security technology and trusted network infrastructures and positions it to better navigate the risks arising from new technologies like quantum computing.

The demonstration is likely to boost the stock on incremental revenue generation on the back of state-of-the-art product innovations. The agreement is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in the region.

The stock has gained 35% over the past year compared with the industry’s growth of 25.6%.


NOK Zacks Rank

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

Key Picks

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 15%. IDCC is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.

Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experiences. Arista delivered an earnings surprise of 14.8%, on average, in the trailing four quarters. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

Qualcomm Incorporated QCOM, carrying a Zacks Rank #2, is another solid pick. The company is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. Qualcomm is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.

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