What Is One of the Best Tech Stocks to Hold for the Next Decade?

Are you looking for a high-octane prospect but don’t necessarily want to make a lifetime commitment? That’s OK. While somewhat rare, these kinds of opportunities do exist. You just need to find a budding revolutionary development that will inevitably reward investors while this solution becomes the norm. Think online shopping, or smartphones, or artificial intelligence (AI).

To this end, largely thanks to** Nvidia **(NVDA +2.04%), telecom-technology outfit Nokia (NOK +1.14%) is currently one of the market’s most underestimated winners for the next 10 years.

The need for 6G is on the near horizon

Nobody will be surprised to learn that the massive amount of digital data being consumed and created by artificial intelligence platforms is putting some serious strain on the planet’s communication infrastructure. Indeed, mobile usage of AI solutions is being constrained by the 5G (fifth-generation) mobile networks that were more than adequate to meet the world’s mobile broadband connectivity needs just a few years ago.

If we’re going to usher in the era of smart cities, self-optimized factories, edge computing, and remote virtualization – just to name a few – we’re going to need a whole new kind of mobile communications infrastructure. That’s 6G.

Image source: Getty Images.

And Nvidia knows it, by the way. That’s why it’s making a point of laying the groundwork for the 6G connectivity that will need to be in place soon if it wants to continue growing the artificial intelligence movement it’s leading. In October, Nvidia and Nokia announced a partnership to develop the sixth-generation wireless telecom infrastructure platforms – powered by Nvidia’s AI tech – that will be required to handle the brewing swell of digital data that current 5G connections just can’t accommodate.

Notably, the press release announcing the agreement made a point of mentioning that “the partnership marks the beginning of the AI-native wireless era, providing the foundation to support AI-powered consumer experiences and enterprise services at the edge.”

In the right place at the right time with the right product

While 6G has been on the technology and telecom industries’ radars for some time now, nobody knows exactly what it will look like and how it will function then, including Nokia and Nvidia! The only near-certainty is that the envisioned solution will almost certainly require artificial intelligence to deal with the massive data loads it will be expected to handle.

That’s why a team-up of AI hardware leader Nvidia and telecom-technology outfit Nokia makes sense, even if the partnership is still very much in its early stages – these two companies are arguably more ready for this unknown future than any other pairing. Just this month, for instance, Nokia introduced an AI-powered hybrid automatic repeat request (HARQ) solution that’s capable of learning real-world acknowledgment (ACK) and negative acknowledgment (NACK) of data delivery, ultimately reducing transmission errors.

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NYSE: NOK

Nokia

Today’s Change

(1.14%) $0.09

Current Price

$7.58

Key Data Points

Market Cap

$42B

Day’s Range

$7.54 - $7.63

52wk Range

$4.00 - $8.19

Volume

1.1M

Avg Vol

30M

Gross Margin

42.53%

Dividend Yield

2.15%

That won’t mean much to consumers right now. Once massive virtual models need to be delivered wirelessly or millions of autonomously driven cars are on the road at the same time, however, it will matter enormously. More to the point for interested investors, this development underscores Nokia’s research and developmental capabilities.

More than anything though, investors on the hunt for an intermediate-term growth opportunity will be excited to hear that Precedence Research expects the worldwide 6G market to grow at an average annualized pace of 24% through 2034. Nokia is well positioned to capture at least its fair share of this growth.