China Unicom also selected Nokia core networking products to support its 5G SA Core network
Finland-based tech company Nokia Oyj (NYSE:NOK) is off 2.1% at $4.11 this morning, amid news that the firm is collaborating with Broadcom (AVGO) to expand its 5G ReefShark 5G chipset portfolio. The two companies will work to develop new custom system-on-chip (SoC) solutions. Meanwhile, China Unicom selected Nokia's core networking products to support its 5G SA Core network, expanding on its existing 4G working relationship.
A look at the charts shows NOK's March-May rally running out of momentum at its 320-day moving average before pivoting lower last week. Since then, the 20-day moving average has emerged as a net for this selloff. And while the stock still boasts a roughly 11% lead for the year, it just came off its worst week since early March, suffering a 5.5% weekly loss.
The majority of analysts covering NOK are optimistic, with five of the seven calling it a "strong buy." Plus, the consensus 12-month price target of $4.69 is a 13.1% premium to current levels.
Options traders are even more bullish, per NOK's 50-day call/put volume ratio of 22.9 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 94th percentile of its annual range, suggesting this penchant for long calls is unusual.