Bank of America: Optimistic about Optical Networks and Critical Mission Network Opportunities After MWC 2026

LootboxPhobia · 2026-03-10T00:54:16+00:00

Bank of America Securities emphasizes investment opportunities in optical networks and critical infrastructure after the 2026 Mobile World Congress, and remains cautious on Nokia and Ericsson. Nokia focuses on AI-enabled wireless access networks with a target commercialization year of 2027; Ericsson concentrates on 5G requirements for critical mission networks, emphasizing partner integration. Both companies' target prices are raised, but ratings remain neutral and underperforming the market.

LootboxPhobia

2026-03-10 00:54:16

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Investing.com – After meeting with telecommunications equipment suppliers at the 2026 World Mobile Communications Conference, Bank of America Securities emphasized investment opportunities in optical networks and critical infrastructure, while remaining cautious about recent sector growth.

The broker recently raised its target price for Nokia in a report on European tech stocks and outlined growth opportunities for Ericsson, but maintained a neutral rating for both companies and a lagging market outlook.

Nokia

Bank of America stated that Nokia highlighted progress in AI-enabled wireless access networks (AI-RAN), with pilot deployments underway and commercialization targeted for 2027.

The company also emphasized revenue opportunities in the optical network sector, noting that its current order backlog mainly focuses on optical and IP network products.

Given the improved outlook and expected growth in demand for optical network infrastructure, the broker raised its target price for the stock while maintaining a “Neutral” rating.

Ericsson

According to Bank of America, Ericsson pointed out opportunities in critical mission networks, such as defense and public safety, where upgrading from traditional systems to 5G is creating new demand.

The company indicated it is ready to integrate accelerators from partners including Nvidia into its hardware and software products, though significant AI-related revenue is not expected in the near term.

The broker noted that, as the broader wireless access network market remains stable, Ericsson is focusing on improving profit margins and cost control.

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