Nokia Corporation NOK has kicked off 2025 on a positive note by signing a multi-year patent license agreement with Samsung. Samsung, a giant in the consumer electronics industry, has opted to deploy Nokia’s industry-leading video technologies across its world-class TVs. Nokia is set to gain from royalty fees for the agreement. However, the terms and conditions of the deal have been kept confidential.

Nokia boasts a leadership position in video and multimedia technologies. Its comprehensive portfolio of multimedia technology focuses on computer vision, immersive video and audio services, video/image compression, next-generation video coding, visual volumetric coding, 360-degree video and many other technologies. Over the past few decades, Nokia has laid a strong foundation of research and innovation for next-generation technology advancements, including cellular and multimedia. NOK’s total investment stands at €150 billion in research and development since the year 2000.

Samsung is already a licensee of Nokia. However, the current license deal is distinct from the existing agreement between the companies. In January 2023, Nokia signed a 5G license agreement with Samsung, which covers Nokia’s fundamental inventions in 5G and other technologies.

Will NOK Stock Benefit From Solid Licensing Momentum?

Nokia’s extensive portfolio consists of around 20,000 patents, among which approximately 7,000 are essential for 5G. NOK’s patented technologies serve as a foundation for several industries, including smartphones, connected devices, IoT devices and solutions, multimedia, video streaming and more. Around 250 companies, including major enterprises such as Apple, Samsung, Vivo, Oppo, HP and Honor, have opted to utilize NOK’s leading-edge technologies across their product suite. Nokia’s strong emphasis on innovation bodes well for long-term growth.

Nokia has made significant progress on its three-phased journey of value creation. The company’s strategy includes Reset, Accelerate and Scale. Its focus on capital allocation and technology leadership is expected to help it grow profitably. Nokia is on track to achieve sustainable, profitable growth and technology leadership. The company is witnessing healthy momentum in its focus areas of software and enterprise, which augurs well for the licensing business. It is poised to benefit from copper and fiber deployments of passive optical networking. However, intensifying competition in the Mobile Networks business remains a major concern for the company.

NOK’s Stock Price Movement

Shares of Nokia have gained 28.5% over the past year compared with the industry’s growth of 33.3%.

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NOK’s Zacks Rank and Key Picks

Nokia currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the broader industry have been discussed below.

Keysight Technologies, Inc. KEYS sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Zillow Group, Inc. ZG sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.

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Nokia Corporation (NOK) : Free Stock Analysis Report

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