BofA Securities emerged from Mobile World Congress 2026 meetings with telecom equipment vendors highlighting tangible opportunities in optical networking and mission-critical infrastructure, yet the firm stopped short of projecting near-term sector acceleration.
Nokia
In conversations with Nokia executives, BofA noted concrete progress on artificial-intelligence-enabled radio access networks (AI-RAN), with trial deployments under way and a stated objective of commercial readiness by 2027. Nokia also stressed revenue potential from its optical networking portfolio and indicated its current order backlog is concentrated in optical and IP networking products. Reflecting what it views as improving prospects for optical infrastructure demand, the broker raised its price objective on the company, while maintaining a neutral rating.
Ericsson
BofA reported that Ericsson is focusing on mission-critical networks, specifically defence and public safety, where transitions from legacy systems to 5G are generating new contract opportunities. Ericsson signalled it is prepared to incorporate accelerators from third-party partners, including Nvidia, into its hardware and software stacks. At the same time, the company told the broker it does not expect meaningful AI-related revenues in the near term.
With the broader radio access network market described as largely flat, Ericsson appears to be prioritising margin expansion and tighter cost controls, according to the note. BofA kept its recommendation on Ericsson at underperform.
Overall, the broker's readout from MWC highlighted pockets of structural demand - notably in optical transport and mission-critical 5G upgrades - but stopped short of a broader growth upgrade for the sector, maintaining a cautious stance on near-term activity.