Juniper Networks, Inc. JNPR announced that a prominent telecom operator in Saudi Arabia, the Saudi Telecom Company (stc), has opted to utilize its advanced networking solution to expand 5G infrastructure nationwide.

High-performance and advanced data centers are essential components in digital transformation initiatives. To support surging data traffic and increasing workloads, operators need to significantly increase the capacity and efficiency of data centers. Juniper’s MX Series Universal Routers can effectively match this demand. In the current venture, JNPR deployed MX10008 routers, which can provide a capacity of 76.8 TBps within 13 rack units. The MX series routers effectively support 400G capacity per site while reducing power usage by 87% and space requirements by 90%.

To support an advanced digital service, a Converged Supercore network is needed. A Converged Supercore network is an advanced network architecture that combines multiple layers into a single infrastructure, optimizing performance and efficiency. JNPR has deployed its leading edge PTX10008 router to transform stc’s network into a Converged Supercore network. The solution delivers 115.2 Tbps with a compact 13 U form factor. 

The improvements led to a significant increase in 100G and 400G capacity with a 43% reduction in energy consumption. The solution can also support 800G capacity, ensuring extensive scalability to match future demands. Lastly, JNPR’s highly programmable PTX and MX platforms are empowering stc to deploy model-driven automation for streamlining operations.

stc is focused on expanding the capacity of its core packet network and data centers to efficiently support broadband, mobile, residential and B2B services. The primary goal is to expand 5G services in 75 cities while improving capacity, scalability and performance, and reducing energy consumption. Juniper’s state-of-the-art 400G capacity routers are efficiently supporting stc’s objectives.

Will This Venture Drive JNPR’s Share Performance?

Greater access to 5G is vital to support digital transformation initiatives. Enterprises across industries are increasingly seeking high-speed connectivity to support their advanced applications. Telecom operators worldwide need a highly scalable, flexible and resilient network architecture to support such high-network demand. Juniper, with a comprehensive AI native networking product portfolio, is well positioned to capitalize on this market trend. 

stc is the largest telecom operator in Saudi. JNPR’s recent venture with stc underscores the credibility and effectiveness of its robust AI-native networking product suite in advancing 5G infrastructure. This venture will likely strengthen JNPR’s presence in the Middle East and boost commercial expansion in the region. However, the impending buyout by HP Enterprise is expected to be the prime factor determining the Juniper stock’s price movement.

JNPR Stock’s Price Movement

Shares of Juniper have fall 4% in the past year against the industry’s growth of 42.8%.

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JNPR’s Zacks Rank and Key Picks

Juniper currently carries a Zacks Rank #3 (Hold).

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

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, it delivered an earnings surprise of 158.41%. 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.

Celestica Inc. CLS carries a Zacks Rank #2 at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.

United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.

U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

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