ADTRAN, Inc. ADTN recently announced a strategic collaboration with Dell Technologies Inc. DELL to support the growing AI networking needs of the U.S. federal government. As part of this collaboration, the fiber networking and telecommunications company will provide a comprehensive suite of optical, packet and software networking solutions, which will be integrated with Dell’s AI-driven infrastructure to accelerate AI deployments across federal agencies.

Digging Deep Into ADTN-DELL Collaboration

ADTRAN’s cutting-edge FSP 150 packet edge and aggregation transport solution enriches consumers with fast, reliable and secure connectivity ranging from 1Gbit/S to 10 Gbit/S. The FSP 3000 open optical transport platform and complementary software systems, equipped with integrated monitoring and diagnostic functions, simplify the management and optimization of transmission performance. 

By combining ADTRAN’s advanced networking technologies with Dell’s AI-driven infrastructure, the new AI Network Cloud (AINC) Factory ON-RAMP solution will offer a flexible platform for managing AI workloads across diverse environments, enabling high-capacity, low-latency and secure interconnectivity between AI compute sites. This will likely empower federal organizations to meet their AI goals with greater speed, security and efficiency. 

In addition, the solution includes the AINC Console, a tool for real-time monitoring, providing federal agencies with a secure, end-to-end solution for AI deployments. This setup minimizes costs while eliminating vendor lock-in, allowing agencies to scale their AI operations without being constrained by proprietary systems.

Does ADTN Stand to Gain From the Collaboration?

ADTRAN has a long history as a pioneer in the data center interconnect sector, enabling enterprises and cloud providers to establish high-capacity, high-performance networks. The company’s solutions are designed to operate within an open environment, fostering innovation and seamless interoperability with other vendors. Through this collaboration, ADTRAN and Dell aim to provide federal agencies with secure, scalable and cost-effective AI networking infrastructure, enabling them to accelerate AI adoption while maintaining compliance with stringent security standards. 

These advancements are expected to generate incremental demands for ADTRAN’s solutions, leading to higher revenues. Improving financial performance is likely to propel the stock upward.

ADTN’s Stock Price Performance

Shares of ADTRAN have gained 51.4% over the past year compared with the industry’s growth of 41.1%.

Image Source: Zacks Investment Research

ADTN’s Zacks Rank and Key Picks

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

A couple of better-ranked stocks in the broader industry have been discussed below.

Plexus Corp. PLXS sports a Zacks Rank of 1 (Strong Buy) at present. It is a leading provider of electronic contract manufacturing services to original equipment manufacturers in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%. 

Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a top supplier of enterprise-level software solutions for human resources and finance management. The company's cloud-based platform makes it simpler for businesses to offer analytical insights and decision support by integrating finance and human resources into a single system.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report

Dell Technologies Inc. (DELL) : Free Stock Analysis Report

Plexus Corp. (PLXS) : Free Stock Analysis Report

Workday, Inc. (WDAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research