Nokia ve třetím čtvrtletí zvýšila upravený provozní zisk na 605 milionů eur, ve srovnání s odhadem 454 milionů eur, díky poptávce po vybavení pro datová centra využívající AI.
Přestože investoři v posledních týdnech zpochybňují tempo investic do umělé inteligence, Nokia těží z opačného trendu. Silné výsledky za třetí čtvrtletí potvrzují, že výstavba datových center a rozšiřování AI infrastruktury vytvářejí nový zdroj růstu, který postupně přebírá roli tradičního telekomunikačního byznysu.
Společnost Nokia oznámila zisk za třetí čtvrtletí, který překonal očekávání analytiků. K tomuto výsledku přispěla rostoucí poptávka po síťovém vybavení pro datová centra, která je poháněna prudkým nárůstem investic do infrastruktury pro umělou inteligenci. Upravený provozní zisk v daném období vzrostl na 605 milionů eur a překonal průměrný odhad analytiků, který činil 454 milionů eur. Nokia těžila z realizace dodávek vybavení pro datová centra, které měla dosud v objemu nevyřízených zakázek. Čisté tržby za dané období vzrostly o 10 % na 5,2 miliardy eur, což mírně překonalo odhady analytiků, píše Bloomberg.
Akcie Nokie ve čtvrtek dopoledne v Helsinkách klesly přibližně o 2 %, zatímco akcie dalších evropských technologických firem rovněž oslabily v důsledku ochabujícího zájmu investorů o sektor spojený s umělou inteligencí. Koš evropských akcií, které by podle banky UBS měly těžit z rozvoje AI, zaznamenal pokles o 2,9 %.
Generální ředitel Justin Hotard usiluje o to, aby se datová centra stala pro Nokii významnějším zdrojem růstu. Poptávka ze strany tradičních telekomunikačních zákazníků totiž zůstává utlumená, což souvisí s pomalým tempem výstavby 5G sítí. V loňském roce Hotard představil strategii zaměřenou právě na využití rozmachu infrastruktury pro AI, která je spojena s restrukturalizací společnosti. Od té doby Nokia již několik svých divizí odprodala. Nyní rozsah restrukturalizace ještě zvyšuje, což povede k celoročním nákladům ve výši až 1,1 miliardy eur.
V rámci své strategické proměny Nokia v loňském roce převzala společnost Infinera, která se zabývá optickými sítěmi. Plnou integraci tohoto podniku očekává do konce roku 2026. Nokia předpokládá, že díky nákladovým synergiím ušetří 200 milionů eur a že její divize optických a IP sítí by mohla v roce 2027 vykázat růst až o 30 %.
Rychlé rozšiřování infrastruktury pro umělou inteligenci ale přináší výrobcům vybavení i nové výzvy. Dodávky některých komponent, například paměťových čipů, jsou omezené, což vedlo k růstu cen. Konkurenční společnost Ericsson uvedla, že se jí podařilo dopady zmírnit, částečně díky tomu, že zákazníci v očekávání růstu cen urychlili své nákupy v průběhu vyjednávání o smlouvách.
Existují náznaky, že své objednávky urychlují také zákazníci společnosti Nokia. Tržby její divize mobilní infrastruktury meziročně vzrostly o 5 % na 2,9 miliardy eur, což překonalo průměrný odhad analytiků ve výši 2,8 miliardy eur, díky „zrychlení příjmů“ již ve čtvrtém čtvrtletí.
„Domnívám se, že zákazníci začínají být obezřetnější a více vnímají rizika spojená s nedostatkem dodávek,“ uvedl Hotard v rozhovoru s novináři pro agenturu Bloomberg. Dodal, že společnost se rovněž zabývá růstem nákladů napříč celým svým podnikáním.
Nokia podle Hotarda navyšuje kapacity, aby odstranila výrobní úzká hrdla u zařízení pro optické sítě. Očekává se, že její druhý závod v kalifornském San Jose bude plně v provozu do konce měsíce. V „jiných částech dodavatelského řetězce polovodičů“ však nadále přetrvávají určitá omezení, dodal.
Nokia spolupracuje se společností Nvidia na zařízení pro mobilní sítě, které využívá pokročilé čipy tohoto amerického výrobce, namísto toho, aby spoléhalo výhradně na jednoúčelové čipy, jež se v telekomunikačních sítích tradičně používají. Toto partnerství je součástí širší snahy Hotarda zajistit pro Nokii pozici v budoucnosti, v níž se výpočetní kapacity pro umělou inteligenci rozšíří mimo datová centra i do komunikačních sítí.
Nokia prodá divizi ECE společnosti AURELIUS; transakce má být dokončena v první polovině roku 2027. Tržby Nokie z AI a cloudu se ve 2. čtvrtletí 2026 meziročně více než zdvojnásobily.
Key Takeaways NOK plans to sell its ECE business to AURELIUS, with the transaction expected to close in 2027.NOK's AI and Cloud revenues more than doubled year over year in Q2.Nokia's earnings improvement may face hurdles from restructuring costs and uneven cash flow.
Nokia Corporation (NOK - Free Report) is taking another step toward sharpening its business focus as demand for AI infrastructure creates new opportunities in networking. The company announced that it signed a definitive agreement for the proposed acquisition of its ECE business by AURELIUS. The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.
ECE serves nearly 900 customers globally across industries such as manufacturing, mining, logistics, airports, ports and power generation. Its portfolio includes private wireless networks, industrial devices, on-premises operational technology edge solutions and software supporting industrial AI applications.
The planned divestiture is intended to give ECE greater independence and flexibility under its new ownership. For Nokia, the transaction aligns with its broader effort to concentrate capital and resources on businesses that offer attractive growth opportunities and differentiated technology.
AI infrastructure remains a key opportunity for Nokia, particularly within its Network Infrastructure business. During the second quarter of 2026, AI and Cloud revenue more than doubled year over year, while order intake reached €2.8 billion. Management expects approximately half of these long-term orders to convert into revenue over the following 12 months.
However, restructuring expenses, uneven cash flow and variations in customer spending could limit the pace of improvement in reported earnings. The benefits of portfolio optimization will also depend on disciplined capital allocation and sustained demand for Nokia's core networking products.
Other Players in the Wireless Equipment MarketEricsson (ERIC - Free Report) is well positioned to benefit from the market momentum with its competitive 5G product suite. The company boasts a comprehensive portfolio of 60,000 granted patents. A highly skilled team makes this possible, while close collaboration with customers ensures quick uptake, driving sustainable growth. About 50% of 5G traffic outside China runs on Ericsson networks. Several smartphone makers such as Apple, Oppo and Huawei are Ericsson’s licensees.
Ubiquiti Inc. (UI - Free Report) , along with its subsidiaries, offers networking products and solutions for service providers, enterprises and consumers. Its community-driven operating structure and global distribution model continue to support scalable growth across networking markets. The company sells through more than 100 distributors, online retailers and its webstores without a traditional direct sales force.
Motorola Solutions, Inc. (MSI - Free Report) is a leading communications equipment manufacturer and has strong market positions in the mission-critical communications vertical. Motorola continues to extend its mission-critical communications platform through AI-enabled software, command center applications and video security solutions. Second-quarter 2026 revenues increased 13% year over year to $3.13 billion, with growth across both segments and all three technologies. In September 2026, Louisiana awarded Motorola a $139 million, 10-year contract spanning body cameras, in-car video, digital evidence management, command center technology and land mobile radio (LMR) network upgrades across six state agencies.
Nokia představila 16portovou kartu podporující GPON až po 50G PON na každém portu; operátorům umožní zvyšovat rychlosti bez výměny infrastruktury. Dostupnost je plánována na rok 2027.
Key Takeaways NOK's new 16-port line card supports GPON, 10G, 25G and 50G PON technologies on every port.Nokia's Quillion-based platform enables network upgrades without replacing infrastructure.The solution delivers up to four times lower upstream latency, quantum-safe security and enhanced resilience.
Nokia Corporation (NOK - Free Report) has introduced a new 50G/25G/10G/GPON (Gigabit Passive Optical Network) line card to help telecom operators upgrade their fiber broadband networks with greater flexibility and lower investment risk. The innovation aims to prepare network infrastructure for the growing demands of artificial intelligence (AI), cloud computing and high-speed connectivity.
Built on Nokia’s Quillion chipset, the 16-port line card supports GPON, 10G, 25G and 50G PON technologies on every port, enabling fiber access speeds of up to 50Gbps. This allows operators to upgrade network speeds as demand grows without replacing existing infrastructure. Operators can also add higher-speed technologies when needed, helping them manage investments efficiently and create new revenue opportunities.
The company’s new platform offers up to four times lower upstream latency, enabling faster data transmission and improving performance for data-intensive applications. It also includes quantum-safe encryption and authentication to protect network and user data from emerging threats, while enhanced resilience helps ensure reliable connectivity for critical services.
With general availability planned for 2027, the launch strengthens Nokia’s position in fiber broadband infrastructure. The solution gives telecom operators greater flexibility to expand network capacity and meet the growing connectivity needs of AI-driven applications.
How Are Competitors Performing?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson is improving network performance through AI-powered 5G technology to increase data speeds, coverage and efficiency. The company is working with telecom operators to improve network capacity and reliability. Ericsson is advancing next-generation wireless technology to support automated network management and new digital services.
Cisco is developing advanced networking chips to handle growing AI workloads and improve data center performance. The company is using AI-powered tools to help businesses detect network issues and automate troubleshooting. Cisco is enhancing network management and traffic visibility to help organizations monitor performance and resolve connectivity problems more efficiently.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 81% over the past year against the industry’s decline of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.25, below the industry tally of 4.67.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have remained static at 39 cents over the past 60 days, while those for 2027 have decreased 4% to 48 cents.
Image Source: Zacks Investment Research
Nokia currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tržby Nokie z AI a cloudu se ve 2. čtvrtletí 2026 meziročně více než zdvojnásobily; objednávky dosáhly 2,8 mld. €, přičemž zhruba polovina by se měla promítnout do tržeb během 12 měsíců.
Key Takeaways Nokia's AI & Cloud revenue more than doubled year over year in the second quarter of 2026.Nokia expects about half of 2.8 billion euro in AI & Cloud orders to convert into revenue within 12 months.Nokia trades at 23.8 times forward earnings, below the industry's 29.51 but above its 20.02 mean. Nokia Corporation (NOK - Free Report) shares have gained 16.2% in the past six months against the industry’s decline of 12.3%. The stock has underperformed the Zacks Computer & Technology sector but outperformed the S&P 500 during the same time frame.
Image Source: Zacks Investment Research
The company has outperformed its peers like Ericsson (ERIC - Free Report) but underperformed Arista Networks, Inc. (ANET - Free Report) . Shares of Ericsson have declined 20.4%, and shares of Arista have risen 48.4%.
Key Growth Drivers for NOKNokia’s Optical Networks and IP Networks business is benefiting from rapid exposure of AI infrastructure business. During the second quarter of 2026, AI & Cloud revenues more than doubled year over year, while AI & Cloud order intake reached €2.8 billion. Management noted that approximately half of these long-term orders are expected to convert into revenues over the next 12 months, while emphasizing that quarterly order patterns are likely to remain uneven. Nokia is also expanding partnerships with cloud providers and enterprise customers to accelerate AI-enabled networking, autonomous network operations and data center connectivity.
Nokia boasts a broad portfolio consisting of 26,000 patent families, including more than 8,000 declared essential to 5G standards. The company is also rapidly venturing into 5G, Open RAN, AI-native networking and 6G technologies. This will likely provide the company several avenues of monetization in the long run.
Expansion into AI-driven network automation can be another growth avenue. Nokia is increasingly using AI to automate telecom-network operations. Its expanded relationship with Microsoft involves integrating Nokia Data Suite with Microsoft Fabric, supporting applications such as automated root-cause analysis and predictive maintenance. Such innovation bodes well for sustainable growth.
Nokia is reducing its exposure to businesses that have weaker strategic prospects. It is redirecting resources toward AI networking and optical technologies. The planned divestiture of the Fixed Wireless Access CPE business is expected to simplify the portfolio.
Major Challenges for NOKDespite growing exposure to AI networking, Nokia’s core business still depends heavily on telecom operators. Telecom spending fluctuates heavily. This is leading to uneven revenue and profitability across investment cycles.
Nokia operates in markets where Ericsson, Cisco, Arista and other networking players are also investing heavily in 5G, AI infrastructure, automation and next-generation networks. Maintaining technology leadership while preserving pricing discipline remains essential as customers balance network modernization against capital spending constraints.
Nokia operates across multiple geographic markets and remains exposed to changes in trade policy, regulation and geopolitical developments. Its international manufacturing and supply-chain footprint can also make project execution more complicated.
Estimate Revision TrendThe company’s earnings estimates for 2026 have remained unchanged, and 2027 have declined over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of NOKFrom a valuation standpoint, NOK is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 23.8 forward earnings, lower than 29.51 for the industry and above its mean of 20.02.
Image Source: Zacks Investment Research
End NoteStrong AI & Cloud demand and double-digit Network Infrastructure growth are major tailwinds for the company. Nokia's extensive technology portfolio boosts commercial prospects. However, cyclical telecom spending, intense competition and substantial restructuring costs will likely impact its growth prospects in the near term. With a Zacks Rank #3 (Hold), Nokia appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Šéf Nokie Justin Hotard uvedl, že bez omezení v dodávkách by zákazníci stavěli datová centra dvakrát rychleji, což podle něj potvrzuje, že rozvoj AI je teprve v rané fázi.
The tech industry would build data centers twice as fast without the supply constraints they face, the CEO of Nokia told CNBC, underscoring continued demand for AI even as top executives debate slowing down the pace of development.
"I don't think you can say in any manner we're overbuilding today because reality is that if we could build 2x faster, our customers could build 2x faster, they probably would," Justin Hotard told CNBC's "The Tech Download" podcast.
"So that gives me confidence that we're still in the early days" of the AI buildout, Hotard added.
Shortages of key memory chips and energy are among the supply constraints facing the sector.
Nokia, one of the world's biggest telecommunications equipment makers, has pivoted to become a key player within the AI infrastructure space. It sells the technology required to connect racks of chips within data centers as well as technology that interconnects data centers across different locations.
Nokia's growing role as a "picks and shovels" player in the AI boom appears to have won over investors, with the stock up around 130% over the past year.
Nokia 1-year stock chart.
But there's been continued debate over whether the industry is building data centers too fast and whether demand will be there to sustain it.
Investments in the AI buildout from data centers to chips and related infrastructure will total $10.3 trillion from 2025 to 2032 — an average of 3.63% of U.S. gross domestic product per year, according to research presented at the Brookings Papers on Economic Activity.
Companies are using debt, joint ventures and other complex financing mechanisms to raise investment for these projects, which depend on sustained demand for AI services over the long term.
Concerns about the pace of the AI buildout were exacerbated by safety worries sparked by an Anthropic researcher's warnings on the existential threat of the technology, which prompted the company's CEO Dario Amodei to call for a slowdown in the development of the most advanced models.
That sparked a knee-jerk sell off in AI-related stocks last month.
Hotard said that demand for AI is not just predicated on frontier labs like Anthropic and OpenAI releasing new models.
"I think the reality is that we're even where we are today is so early in the deployment, and the power of these models is so massive that there's a lot of there's a lot of demand to run in just deploying," Hotard said.
"Even if we didn't have another frontier model released in the next three years, we could probably make tremendous progress just deploying the technology that's there today."
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Nokia a Iceye vyvinou satelitní komunikační systémy pro vlády a obranné dodavatele, zaměřené na bezpečné sítě LEO pro armádu, pohraniční bezpečnost, nouzové služby i reakci na katastrofy. První satelity mají být vypuštěny v roce 2028.
Finnish technology and telecommunication company Nokia's headquarters in Espoo, Finland, October 28, 2025. Lehtikuva/Seppo Samuli via REUTERS/File Photo Purchase Licensing Rights, opens new tab
OSLO, Oct 1 (Reuters) - Nokia (NOKIA.HE), opens new tab and Iceye will develop satellite communications systems for governments and defence contractors, supporting missions from military and border security to emergency services and disaster response, the companies said on Thursday.
The partnership will deliver secure, sovereign and high-performance broadband low Earth orbit (LEO) communications systems, with the first satellites expected to be launched in 2028, the companies said in a statement.
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"Built on trusted European technology, the jointly developed satellite communications systems will give nations ownership and control of the satellites, ground segment and terminals," Nokia and Iceye said.
Among rivals in low Earth orbit systems is Starlink, owned by US group SpaceX (SPCX.O), opens new tab.
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Reporting by Terje Solsvik, editing by Louise Rasmussen
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Nokia ve 2. čtvrtletí zvýšila výnosy o 9 % na 4,8 miliardy EUR a výnosy z oblasti AI a cloudu vzrostly o 105 %. Firma potvrdila celoroční výhled provozního zisku 2,1 až 2,6 miliardy EUR.
Nokia has survived more near-death experiences than almost any company in tech history, and now it sits at the crossroads of AI infrastructure and global telecom. Whether its latest reinvention actually sticks is a far more complicated story than the…
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NOKIA This year marks 161 years since the foundation of the Finnish technological giant NOKIA. The company started as a simple wood pulp mill, and diversified to produce industrial goods. In the 60s, the company started researching electronics. By the early 90s it had refocused its business on telecommunications, divesting its rubber, cable and consumer electronics units. The first GSM network call was performed in 1991 over NOKIA’s infrastructure. By the mid-2000s the company had become the world’s best selling phone brand, shipping more than 250M units a year. At its peak in 2000, Nokia reached a market value of around €200B and represented nearly 70% of the Finnish stock market.
After the popularization of the iPhone and the smartphone transition that followed, NOKIA lost its dominance. By 2014 the company lost 90% of its peak market value and sold its phone division to Microsoft. The company then focused its business as a B2B network and telecom infrastructure provider. Base stations, also known as RAN, became its main business.
Mandatory shift In 2024 the company announced the acquisition of Infinera, closed in February 2025, implying a major shift to NOKIA’s business model. The acquisition closed a gap for NOKIA as a missing piece for the networking company. Infinera’s manufacturing expertise in photonic integrated circuits and its vertical integration were key for NOKIA’s development of the DSPs and optical engines used for datacenter interconnects, in ranges from a few kilometers to thousands of kilometers.
Today the company is a communications powerhouse, covering both telecom and data center business. In addition, the company’s revenue stream comes from product sales and patents. NOKIA is modernizing its product catalogue and increasing the industries it serves. Military applications and robotics are both more relevant for the company’s future. NOKIA occupies a strategic position as the link between data center infrastructure and telecom networks. That role should grow in importance as edge computing and physical AI become more relevant.
Quick facts NOKIA is a networking powerhouse, with presence in all segments related to information transportation. Radio networks, optical and IP are the most important.
In radio access networks (RAN), NOKIA ranks third worldwide by revenue, behind Huawei and Ericsson and ahead of ZTE and Samsung. The top five suppliers accounted for 96 percent of revenue, and Huawei and Ericsson alone hold nearly two-thirds. In addition, the RAN market itself has stagnated. It is not expected to increase significantly before the 6G rollout begins around late 2028 or 2029.
Optical is where NOKIA is gaining ground. For the four quarters ending in Q2 2026, the top optical transport vendors were Huawei, Ciena, NOKIA, and Cisco. Ciena and NOKIA are the leading suppliers of disaggregated WDM optical line systems, a segment that grew 80 percent year over year. The optical transport market is forecast to grow 16 percent in 2026, surpassing $18 billion for the first time since 2000, driven by AI data centers.
In IP routing, NOKIA competes mainly with Cisco and Huawei. Across the broader telecom equipment market, Huawei and Cisco gained share in the first half of 2026, while NOKIA’s combined share fell.
Smaller than it was in 2022 As for size and profitability, NOKIA is a roughly €20 billion revenue company with around 78,000 employees. It typically runs a comparable operating margin between 10 and 13 percent, which translates into €2.0 billion of comparable operating profit in 2025 at a 10.2 percent margin. Net sales peaked at €24.9 billion in 2022, then fell to €22.3 billion in 2023 and €19.2 billion in 2024, before recovering 3 percent to €19.9 billion in 2025. In other words, four years into the ChatGPT era, NOKIA is still a smaller company than it was when the AI boom started, although, as explored in this article, the balance may be shifting.
Products Under CEO Justin Hotard, who took over in April 2025, the company has repositioned itself around AI infrastructure. The acquisition of Infinera positions NOKIA as a vertically integrated indium phosphide photonics player. It increases its presence across communication infrastructure, whether based on radio or photonics technologies.
NOKIA foresees the importance of photonics as part of its portfolio. The company already has a photonics manufacturing site in San Jose, inherited from the Infinera acquisition. And a second fab is scheduled to begin production toward the end of 2026. To increase capacity further, NOKIA is expanding its advanced test and packaging operations in Pennsylvania tenfold starting in Q3 2026, and has agreed to acquire NXP’s Chandler semiconductor site in Arizona, which it will convert to indium phosphide production.
Optical Solutions Infinera originally produced photonic integrated circuits (PIC) used mainly for optical transport and networking systems over fiber optics. The company also integrated technologies such as DSPs, coherent optics and optical engines.
NOKIA’s integration with Infinera has led to the development of optical engines as one of its most important products. Optical engines are highly integrated solutions that combine multiple optical functions onto a single monolithic semiconductor chip. These product lines enable high-speed data transmission in optical communication systems. In fact, NOKIA’s ICE7 solution enables the delivery of 800G services over distances of up to 3000 km, essential for data center interconnect. Moreover, NOKIA’s products can operate at up to 1.2 Tb/s per wavelength, enabling power efficient, high-bandwidth, low-latency data transmission. The company sells integrated solutions in both software and hardware.
During Q2 2026, optical networking represented 18% of net sales, around €868M. The segment is expanding quickly, at around 20% per year.
IP routing As a networking juggernaut, NOKIA’s portfolio also includes a full range of IP solutions. It has a presence in the whole networking ecosystem, whether mobile, fixed or transport networks.
Its portfolio is so broad that it is difficult to describe the company’s products without going into specific examples. In IP routing alone, the company has the 7750 service router family, used as a datacenter gateway. These are essential for multi-ISP connections and CDN interconnection among IP networks.
Traditional data centers and hyperscalers rely on the physical infrastructure NOKIA provides, and NOKIA designs the critical components inside its optical and networking solutions. For instance, the FP5 networking processor is the backbone of most of their routing platforms. It is a fully programmable routing silicon chip whose programmable logic can adapt to future IP needs as networking services evolve, traffic bursts, or security requirements change. NOKIA’s products are not limited to hardware, but extend to fully integrated systems. Again in routing, the 7750 Service Router ships with the company’s custom operating system for service routing, SR OS.
During Q2 2026, IP Networks represented 14% of net sales, around €679M. The segment is expanding quickly, at around 16% per year.
Radio Networking Radio Networks is NOKIA’s base station business. The company became the infrastructure leader after it exited phones. It also covers the transport layer that connects those base stations back into the network. As the need for higher speed and seamless connection grows in ever denser urban environments, where billions of mobile devices need access to the internet, it becomes imperative for networking companies to develop solutions in the microwave physical transport layer. The company estimates that by 2034 traffic will be three times higher, driven by AI traffic, immersive experiences and industrial operations. NOKIA’s answer is the Wavence portfolio, which broadens the company’s microwave transport solutions. Wavence covers ultra-broadband transceivers, microwave service switches and advanced antennas such as the UBT-m XP.
During Q2 2026, Radio Networks represented 37% of net sales, around €1,765M. The segment is growing slowly, at around 7% per year.
AI-RAN and future tailwinds in radio networking In October 2025, NVIDIA and NOKIA announced a partnership to jointly develop AI native radio access network (AI-RAN) products. The alliance expects traditional RAN networks to become software centric, in contrast to the traditional hardware centric approach, which relies mainly on specialized chips known as ASICs to deliver telecommunications.
AI-RAN would allow the same hardware to adopt future standards, starting with 5G and continuing into 6G, with the advantage of delivering updates as needed. On the technical side, AI-RAN incorporates high performance computing, which in NOKIA’s case is expected to use NVIDIA’s GPUs. The GPUs are expected to perform networking operations such as routing, with the spare compute capacity used for inference. Paraphrasing Ronnie Vasishta, senior vice president of telecom at NVIDIA , NOKIA brings its radio communications expertise and market share, while NVIDIA provides its accelerated computing ecosystem. This paradigm change is also expected to affect the business side of the equation, bringing extra revenue to telecom providers, who could essentially rent inference capacity to edge devices such as mobile phones or robotic platforms. The alliance is promising, and NVIDIA has already invested $1B in NOKIA.
AI-RAN is still in a validation phase, but several telecom operators are already showing interest. T-Mobile, Indosat and Elisa have expressed it, and Elisa has already shown a first proof of concept.
AI-RAN economics To go deeper into AI-RAN, it is essential to consider current token usage. Due to the rise of agentic workloads, token consumption has grown exponentially. Current estimates cite around 100 trillion tokens consumed worldwide per day and still accelerating. With that in mind, having spare inference capability is beneficial both for consumers and telecom providers.
SoftBank estimates that a single GB200-NVL2 based AI-RAN base station has capacity for 25,000 tokens per second, with up to $20 per hour of monetizable compute per server, or around $15K per month. Telecom providers could therefore increase their revenue with AI-RAN.
Beyond monetization, the platform promises a step change in capacity. NOKIA targets more than 100% spectral efficiency gains by 2028, meaning roughly twice as many devices on the same physical link. Moreover, as AI-RAN moves from ASIC based radios to general purpose computing, operators upgrade base stations in software rather than hardware, breaking with tradition.
Telecom is not the only beneficiary of AI-RAN. For NVIDIA, its adoption is critical to its vision of the Omniverse, where every physical system has a digital twin, which in turn allows for optimization of those systems and a more efficient world overall. The constant observability, communication and bandwidth that AI-RAN enables are essential to that vision.
Current financial status and what to expect as drivers manifest NOKIA’s Q2 2026 results show the AI thesis is already in the numbers. Net sales grew 9% in constant currency to €4.8 billion, with comparable operating margin up 70 basis points to 9.0%. Sales to AI & Cloud customers grew 105%, and order intake from that group hit €2.8 billion, nearly triple Q1. Optical Networks (+20%) and IP Networks (+16%) led the growth, while patent licensing added 15%.
The weak spot was cash. Free cash flow was negative by nearly €0.7 billion, mainly due to higher working capital. While accelerated restructuring and the expansion of manufacturing capacity pushed reported operating profit into a loss.
Management kept its 2026 guidance of €2.1 to €2.6 billion in comparable operating profit, with most of the upside expected in Q4, and says supply, not demand, is its main constraint.
Conclusions NOKIA has adapted before, going from a wood pulp mill to the biggest cellphone manufacturer on the planet, and from that collapse to a B2B infrastructure provider. Today it is doing it again, this time around networking. From radio to optical, photonic and IP, NOKIA delivers end to end networking that telecom operators and data centers depend on.
Growth remains available to the company, because networking is as vital as raw compute power in the AI era. As both inference usage and the number of connected devices increase exponentially, innovations at the link layer become essential. By 2034 the mobile traffic is expected to grow 200% therefore advances in that area are essential for the industry. This same argument has been recognized by NVIDIA, and technologies like AI-RAN, jointly developed with NOKIA, allow NVIDIA to keep thriving, especially with the upcoming wave of digital twins and physical AI, where inference as close to the source as possible is key.
The caveat is that none of this is yet visible at the group level. NOKIA is still smaller than it was in 2022, its cash flow turned negative in the last quarter, and its most profitable business, mobile, is also its slowest growing one. The growth is real, but it is concentrated in optical and IP, and it is still offsetting decline elsewhere rather than adding on top of it.
Nonetheless, I believe that NOKIA holds a strong position to keep growing and become a key player in the AI era. Today IP routing and optical solutions are the main drivers of growth, pulled by data center infrastructure demand. In the future, as operators begin monetizing inference at the edge, AI-RAN could turn the company’s largest and slowest business into a revenue driver of its own.
Contact [email protected] for any questions or corrections.
Jim Cramer označil Nokia za silný nákup, ale akcie už ve čtvrtek intradenně vzrostly o 3,8 % po oznámení rozšířeného partnerství s Microsoftem na AI platformě pro automatizaci telekomunikačních sítí.
Jim Cramer just called Nokia a strong buy, which would be great news except for one uncomfortable fact that long-suffering NOK shareholders know all too well about his track record.
Long-suffering Nokia shareholders finally got the CNBC blessing this week. On the September 16 Lightning Round of Mad Money, Jim Cramer told a caller asking about Nokia (NYSE:NOK | NOK Price Prediction) that “I like Nokia very much… I think it’s a terrific situation and I would be a buyer right here, right now.” The endorsement came a day before Nokia disclosed an expanded partnership with Microsoft (NASDAQ:MSFT) to launch an AI-powered telecom network automation platform integrating Nokia Data Suite with Microsoft Fabric, sending shares up 3.8% intraday Thursday.
Here is why some Nokia holders may cringe at the timing. A cottage industry of “Inverse Cramer” strategies has grown up around the premise that fading his calls beats following them. Quiver Quantitative runs an Inverse Cramer portfolio, and the popular CramerTracker account on X recently circulated three-year performance numbers claiming the inverse strategy returned 171.6% versus 146.6% for a Nancy Pelosi tracker. One viral post joked that “Inverse Cramer being autopilot’s best performing fund will never not be hilarious.”
Rally Already Baked In? Nokia has moved well beyond its sleepy value-trap reputation. The ADR is up 132.81% over the past 12 months and 65.14% year to date, trading around $10.53 after touching a 52-week high of $17.36. Market capitalization now sits near $58.95 billion. That rally reflects a genuine business inflection under CEO Justin Hotard, who has retooled the Finnish equipment maker around what he calls the AI supercycle.
The Q2 2026 report on July 23 gave the bulls their ammunition. Revenue of $5.49 billion beat estimates by 13.79% and EPS of $0.0799 beat the $0.0682 consensus. Most striking, AI and Cloud customer revenue more than doubled year over year to $508.96 million, with order intake of EUR 2.8 billion in the segment. Optical Networks grew 19% and IP Networks grew 15% on a constant currency basis. Details are in the 6-K filing.
Hotard told analysts on the call, “If there was more supply, I think we’d probably generate more revenue,” underscoring that supply capacity is the binding constraint. Nokia is addressing that by acquiring NXP’s Chandler, Arizona semiconductor fabrication campus for Indium Phosphide production, ramping a new San Jose optical fab in Q4, and boosting Pennsylvania test capacity tenfold.
Valuation and the Numbers Cramer Skipped Nokia carries a trailing P/E of 70 and a forward P/E of 22, with a PEG of 0.818 and an analyst consensus target of $14.96. Wall Street sentiment is mixed: four strong buys, four buys, two holds, and one strong sell.
The complicating footnotes matter. Reported Q2 operating income was a loss of $57 million after $445.05 million in accelerated restructuring charges. Free cash flow ran negative $835 million, and net income dropped 94.44% year over year. Management expects EUR 800 million in total restructuring charges in 2026 as it integrates its China operations and simplifies its European footprint.
What to Watch Next The Microsoft news reported by Barron’s and the WSJ Thursday morning extends a strategic pattern that includes the prior Nscale networking partnership and a patent agreement with Amazon. AI-RAN pilots are on track to begin at year-end, with commercial availability in 2027. For Q3, Nokia guided sequential net sales growth of 3% to 7%. Cramer’s viewers should watch order conversion. Management expects about half of AI and Cloud orders to convert to revenue within twelve months. Whether the Inverse Cramer crowd or the CNBC faithful ends up looking smart on NOK will hinge on that conversion metric.
Contact [email protected] for any questions or corrections.
Jim Cramer gave two nuclear and AI infrastructure plays completely opposite verdicts on the same night, and the reason comes down to a single number that separates a buy from a pass in a rising rate environment.
Two quality businesses came up on the September 16 Mad Money lightning round, and only one cleared Jim Cramer’s bar. He told a caller Nokia (NYSE:NOK | NOK Price Prediction) was a buy right here right now, then passed on BWX Technologies (NYSE:BWXT) because the multiple was too rich.
Both names sit on real end markets, one in AI networking and the other in naval propulsion and small modular reactors, so the split reflects what he is willing to pay when the discount rate is moving against long-duration stories.
Nokia has rerated on data center wins and optical demand, up 59.02% year to date through the September 16 close. BWXT has given back a chunk of its nuclear renaissance premium, down 15.37% over the same stretch. That gap frames the segment, and it frames a rule that runs through most of Cramer’s snap verdicts in a tightening cycle.
Why Nokia Cleared the Bar Nokia is up 124.18% over the past year as the AI supercycle shows up in the order book. Q2 revenue of $5.49 billion beat consensus by 13.79%, and AI & Cloud customer revenue more than doubled year-on-year to roughly $509 million.
Order intake in that same segment reached $3.20 billion for the quarter, with roughly half expected to convert to revenue within twelve months. CEO Justin Hotard said on the call that “the stronger order momentum that began in the second half of 2025 is now translating into revenue growth.”
The strategic moves back that up: the NXP Chandler fab acquisition for indium phosphide production, the San Jose fab ramping to volume by Q4 2026, and preferred networking status with Nscale.
At a forward P/E of 22x against an analyst target of $14.96, the cash is arriving at a multiple that still discounts to peers in optical and IP.
Why BWXT’s Multiple Is the Sticking Point Cramer’s objection was blunt. “The problem with BWXT, the price to earnings multiple at 30 is too high, according to CNBC. I think it’s a great company. Really terrific. But it’s too expensive. Even though it has nuclear. We have to hold off.”
The business is genuinely strong. Q2 revenue rose 18% to $901.63 million, backlog reached $8.4 billion (up 40% year over year), and trailing twelve-month book-to-bill sits at 1.7 times.
A multiple that was defensible when discount rates were falling becomes hard to defend when they are rising. BWXT still trades at a forward P/E of 29x, and a trailing P/E of 38x, and much of the SMR order flow remains years away from meaningful revenue (we mapped five ways to play the nuclear restart, utilities and fuel suppliers included, in a free report here).
Nuclear exposure is a thesis. The stock’s multiple is a price, and Cramer’s read is that today’s price already discounts the win.
Cramer’s Rule Underneath Every Call Cramer framed the segment as follows: in a rate-tightening cycle, buyers cannot own companies with persistent losses. That is why his caution on trucking after a soft J.B. Hunt earnings report and his advice to consider a merger and move on sit alongside the BWXT pass.
The through line is a shorter time horizon on anything requiring patience, and a preference for cash flow visible in the current fiscal year.
Lightning round answers are snap judgments delivered without a model. Treat any of them as a starting screen for your own work.
Bull and Bear Case for NOK Stock The bull case is that Nokia is early in a multi-year AI networking cycle where supply is the binding constraint, with Hotard noting on the call that “if there was more supply, I think we’d probably generate more revenue.” Full-year comparable operating profit is guided to EUR 2.1 billion to EUR 2.6 billion, with management pointing above the midpoint.
The bear case is customer concentration in a handful of AI and cloud names, plus $445 million in accelerated restructuring charges that pushed reported Q2 operating result to a $57.06 million loss, with free cash flow conversion tracking the low end of the 55% to 75% range.
The variable is whether the AI RAN pilots at year-end and the San Jose fab ramp turn the current order book into 2027 revenue, or whether hyperscaler order timing slips and the rerate stalls.
Contact [email protected] for any questions or corrections.
Nokia rozšířila Deepfield Defender u Espanixu v Madridu a Barceloně, čímž chrání více než 200 národních i mezinárodních sítí před DDoS útoky během několika sekund. Řešení zároveň zajišťuje provoz i bezpečnostní operace ve Španělsku.
Key Takeaways NOK expands Deepfield Defender across ESpanix's Madrid and Barcelona platforms.The solution uses AI-powered analytics to detect and mitigate DDoS attacks within seconds.The deployment supports data sovereignty by keeping Spanish traffic and security operations in-country. Nokia Corporation (NOK - Free Report) has strengthened its network security business in Spain with ESpanix, the country’s largest Internet exchange point, by deploying the Deepfield Defender solution across Madrid and Barcelona platforms. The initiative expands the reach of the company’s distributed denial-of-service (DDoS) protection technology to more than 200 national and international networks connected to ESpanix.
Nokia’s network security technology combines artificial intelligence (AI)-powered network analytics with its Deepfield Secure Genome security intelligence to detect and mitigate DDoS attacks within seconds. It provides automated, network-based protection that removes malicious traffic while allowing legitimate data to continue flowing, helping networks respond to increasingly sophisticated cyber threats.
The company’s solution delivers security directly within network infrastructure. It enables ESpanix to mitigate attacks without redirecting traffic to external scrubbing centers, which helps keep Spanish Internet traffic and security operations within the country. This supports data-sovereignty objectives while helping to address growing European requirements for secure and resilient digital infrastructure.
The latest deployment expands Nokia’s existing relationship with ESpanix and demonstrates the scalability of the company’s Deepfield portfolio across multiple networks through a single Internet exchange platform.
How Are Competitors Advancing in the Network Security Domain?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson is improving network security for 5G and next-generation networks. The company is incorporating Zero Trust principles and AI-driven security into network operations. Ericsson is developing security solutions to protect AI-enabled and autonomous networks.
Cisco is expanding its cybersecurity portfolio to protect networks, cloud environments and applications. The company is using AI-powered technologies to help organizations detect and respond to cyber threats. Cisco is also developing security solutions to protect AI applications and agents from emerging cyber threats.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 109.3% over the past year compared with the industry’s 20.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.20, below the industry tally of 4.78.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have decreased 2.5% to 39 cents over the past 60 days, while those for 2027 have remained static at 50 cents.
Image Source: Zacks Investment Research
Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia uvedla, že plánuje do konce roku uzavřít téměř všechna pracoviště v pevninské Číně. Akcie jsou stále 42 % pod 52týdenním maximem, ale za poslední měsíc přidaly 7,2 %.
Nokia stock sits 42% below its summer peak, but the China retreat reports blamed for the slide arrived months after the selloff began. The real question is whether the rally that preceded it was ever built on something real.
Nokia (NYSE:NOK | NOK Price Prediction) closed most recently at $10.03, down 42.5% from its 52-week high of $17.45. Yet over the trailing month, the stock is actually up 7.2%, and it rose 2.7% in last Friday’s session. The China-exit reports that hit in mid-August did not cause the summer drawdown. The real question is whether the spring rally was ever earned.
Nokia is up 54.1% year to date, up 120.4% over one year, and 67.7% higher over five years. This is a stock that ran hard and gave part of it back. The bulk of that decline happened between late May and early August, before any China site-closure reporting.
Case That the Rally Was Earned Q2 2026 revenue of $5.49 billion (€4.8 billion) beat estimates by 13.8%, with EPS of $0.08 (€0.07). That is three consecutive quarters of beats after Q2 2025 missed EPS by 38.2% and forced a guidance cut. AI & Cloud customer revenue more than doubled to $508.96 million (€446 million), and Q2 order intake reached €2.8 billion. The Infinera acquisition built the optical transport franchise (the long-haul fiber gear that moves data between and inside data centers), and Nokia has an agreement to acquire NXP’s Chandler, Arizona, campus for indium phosphide production. Patent licensing (Technology Standards at €407 million, up 14%) throws off cash regardless of equipment cycles.
Case That the Rally Was a Story The Nvidia strategic investment and AI-RAN partnership (adding GPU acceleration to radio access networks) drove the re-rating, and it came with new share issuance that diluted existing holders. Retail piled in: Reddit sentiment hit “very bullish” around the May 29 peak on posts calling Nokia “the backbone of AI infrastructure.” A partnership with Anduril reported by The Motley Fool on May 13, 2026, added fuel. Partnerships lack the recurring revenue that would justify a re-rating.
What the China Exit Actually Means The South China Morning Post reported on August 18, 2026, that Nokia plans to close almost all mainland China sites by year end. Fierce Network on August 19 framed the retreat as a bigger bet on AI and optical networks, while Light Reading warned the same day about thousands of China jobs shed at likely 6G cost. Fierce Network noted on August 28 that Nokia defended Bell Labs after a former chief blasted cuts. Nokia reports in euros while a majority of its sales are dollar-denominated, which is why this Helsinki-headquartered stock can move on FX swings alone.
What Must Go Right for Shares to Reclaim the Peak Network Infrastructure must keep compounding on AI and cloud customers rather than relying on telecom capex. AI-RAN pilots (10 public customers, commercial in 2027, volume in 2028) must convert. The departure from China needs to show up in group margin. Optical pricing must hold. A stalled Network Infrastructure quarter, or slipping Nvidia milestones, undermines the bull case.
Verdict Nokia’s operating turn is genuine. The spring valuation priced a story the fundamentals had not yet delivered. The current level looks more defensible than the share price of $17.45 did.
Contact [email protected] for any questions or corrections.
Key Takeaways Nokia's new Saudi R&D center will develop AI-powered automation and orchestration software.The facility will focus on autonomous network technologies that improve efficiency and reduce energy use.NOK will support AI-native 6G research while creating engineering, training and certification opportunities. Nokia Corporation (NOK - Free Report) has opened a new research and development center in Riyadh, Saudi Arabia, strengthening its footprint in artificial intelligence (AI)-powered network automation and orchestration. The company will develop advanced software solutions for communications service providers and enterprises in both local and global markets.
Nokia's latest facility will focus on technologies such as Service Management and Orchestration, Self-Organizing Networks, Autopilot and rApps. These solutions are designed to help communications networks become more autonomous by enabling them to self-configure, self-heal and optimize performance while improving operational efficiency and reducing energy consumption.
The investment will support research into AI-native 6G technologies and contribute to the development of next-generation communications infrastructure. It will also strengthen local technology and software expertise by creating high-value engineering and research opportunities and offering training programs, boot camps and certifications in AI and automation.
By developing innovative software in Saudi Arabia for deployment across its global customer base, Nokia aims to expand its technology portfolio and create exportable “Made in Saudi” solutions. The initiative is likely to enhance the company’s research capabilities in AI, automation and advanced communications networks.
How Are Competitors Performing in the AI Space?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson is advancing its AI strategy with AI-powered RAN solutions to improve network performance, automation and energy efficiency. The company is developing AI-ready infrastructure and working with partners on AI applications for 5G and 6G networks. Ericsson is integrating AI into its network platforms to help operators manage traffic and automate operations more efficiently.
Cisco is expanding its AI strategy by developing secure AI infrastructure and networking solutions for large-scale AI workloads. The company is advancing agentic AI tools to automate and simplify network, security and IT operations. Cisco expanded its Secure AI Factory with NVIDIA to meet growing demand for AI computing and data center infrastructure.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 126.7% over the past year compared with the industry’s 25.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.27, below the industry tally of 4.86.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have decreased 2.5% to 39 cents over the past 60 days, while those for 2027 have remained static at 50 cents.
Image Source: Zacks Investment Research
Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia ve 2. čtvrtletí 2026 více než zdvojnásobila výnosy z AI a cloudu, objednávky dosáhly 2,8 miliardy EUR. Zároveň vykázala 390 milionů EUR restrukturalizačních nákladů a záporný volný cash flow ve výši 732 milionů EUR.
Key Takeaways Nokia's AI & Cloud sales more than doubled in Q2 2026, with order intake reaching 2.8 billion euros.Nokia is expanding optical capacity and advancing AI-RAN to capture rising AI and cloud infrastructure demand.Nokia faces near-term pressure from restructuring charges, stiff competition and negative free cash flow. Nokia Corporation (NOK - Free Report) shares have surged 135.8% in the past year compared with the industry’s growth of 26.4%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
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The company has outperformed its peers like Arista Networks, Inc. (ANET - Free Report) and Ericsson (ERIC - Free Report) . Shares of Ericsson have gained 27.9%, and shares of Arista have risen 40.4%.
Major Growth DriversIn the near term, one of the key growth drivers for Nokia is accelerating investment in AI and cloud infrastructure. Nokia’s AI & Cloud sales more than doubled year over year in the second quarter of 2026, representing 105% growth. AI & Cloud order intake reached €2.8 billion. It is to be noted that the demand was not confined to a particular product category. The company secured long-term orders across both Optical Networks and IP Networks.
Nokia’s optical portfolio supports applications spanning from metro and regional networks to long-haul connectivity and data-center interconnects. Rising bandwidth requirements of AI workloads, cloud computing and data-center interconnectivity is propelling sales in the Optical Networks business. Nokia is also expanding optical manufacturing capacity in the United States. Its San Jose facility is expected to begin ramping production toward the end of 2026. Such initiatives to support increasing demand are positive.
IP Networks is another important growth contributor. Stronger demand for IP routing and data-center switching is driving net sales in this vertical.
Nokia’s development of AI-RAN provides a longer-term growth opportunity. The company has already launched the industry’s first commercial AI-RAN platform during the quarter. The leading-edge tech is designed to increase network capacity using existing spectrum. It also allows radio networks to evolve through software rather than requiring frequent hardware replacements.
It is evident from its recent strategy that Nokia is expanding beyond traditional connectivity hardware by incorporating AI into network operations. The company is collaborating with Google Cloud to introduce AI agents for autonomous networks. Nokia is partnering with Vodafone to develop AI-powered network slicing that can dynamically allocate network resources. Such strategic collaboration with industry leaders bodes well for sustainable growth.
Key ChallengesNokia’s strategy of pivoting toward higher-growth businesses is creating significant near-term financial pressure. The company recorded €390 million of restructuring and associated charges in the second quarter of 2026. This is weighing on operating profit. Nokia’s AI and optical infrastructure expansion requires substantial capital investment.
Free cash flow was negative €732 million in the second quarter, while net working-capital outflows were approximately €1.15 billion. Continued investment in optical manufacturing capacity may bring long-term benefits but will likely impact free cash flow in the near term.
Nokia continues to compete in highly competitive telecommunications equipment markets where pricing, technology differentiation and customer procurement decisions influence contract awards and long-term profitability. In data-center and IP networking, Arista Networks brings strong competition, while Ericsson remains a major rival in mobile infrastructure.
The company remains exposed to the cyclical nature of telecommunications infrastructure spending, which can create uneven revenue and profitability across investment cycles. While AI and cloud demand is supporting Optical Networks and IP Networks, carrier spending remains mixed across regions and business lines.
Estimate Revision TrendThe company’s earnings estimates for 2026 have declined, and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of NOKFrom a valuation standpoint, NOK is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 21.96 forward earnings, lower than 30.71 for the industry and above its mean of 20.02.
Image Source: Zacks Investment Research
End NoteNokia's growth strategy is increasingly shifting from traditional telecom infrastructure toward AI-driven connectivity infrastructure. Strong momentum in the Optical Networks and IP Networks business is positive. Partnership with leading tech companies is boosting commercial opportunities. However, competitive market dynamics and cyclical end markets remain major concerns. Macroeconomic uncertainty remains a headwind. With a Zacks Rank #3 (Hold), Nokia appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia ve 2. čtvrtletí zvýšila tržby segmentu Network Infrastructure na 2,04 miliardy EUR díky silné poptávce po AI & Cloud. Tržby AI & Cloud vyskočily meziročně o 105 %.
Key Takeaways Nokia's Network Infrastructure sales rose to 2.04 billion euro, fueled by strong AI & Cloud demand.AI & Cloud sales surged 105%, while Optical Networks and IP Network revenues grew 20% and 16%, respectively.Nokia is expanding optical capacity as telecom modernization adds another growth driver. Nokia Corporation (NOK - Free Report) is benefiting from solid revenue growth in the Network Infrastructure segment. During the second quarter, net sales from Network Infrastructure totaled €2.04 billion ($2.37 billion), increasing from €1.83 billion in the year-ago quarter. There are multiple factors driving this growth.
The rapid expansion of AI infrastructure has substantially increased the need for high-capacity connectivity. Nokia, with its robust Optical Network and IP network portfolio, is capitalizing on this emerging trend. In the second quarter, AI & Cloud net sales increased 105% year over year, while AI & Cloud order intake reached 2.8 billion euros.
During the second quarter, Optical Networks revenues grew 20% year over year on a constant currency (cc) basis, while IP Network grew 16% on a cc basis, backed by growing AI infrastructure spending. Nokia is actively expanding its optical manufacturing capacity to support the growing demand. Its new San Jose facility is expected to scale production in the fourth quarter of 2026. The Pennsylvania advanced test and packaging capacity is being increased 10x. These capacity expansions will help the company support expanding demand in the next several years.
Telecom network modernization remains a secondary growth driver. Telecom networks are also extending and enhancing their network to support high-bandwidth applications and AI workloads. This is also expected to remain a growth driver for upcoming quarters.
Weakness in the Fixed networks business remains a drag on this segment’s net sales growth. Lower sales of consumer-premise fiber products are impacting revenues.
How are Competitors Faring?Nokia faces competition from Ciena Corporation (CIEN - Free Report) and Arista Networks, Inc. (ANET - Free Report) in the Network Infrastructure segment. Ciena is witnessing solid demand trends as AI applications drive higher network traffic and bandwidth consumption across cloud and service provider environments. The company’s Optical Networking revenues increased to $1.10 billion from $773.6 million a year ago in the second quarter of 2026.
The company offers high-capacity optical transport, coherent optics and data-center interconnect solutions. This helps cloud providers and network operators handle rapidly increasing bandwidth requirements. Ciena is also targeting AI infrastructure with higher-capacity optical technologies, putting it in direct competition with Nokia.
Arista Networks competes with Nokia primarily in IP and data-center networking. The company boasts a strong presence in high-speed Ethernet switching and routing. This gives Arista exposure to the rapid expansion of AI data centers. During the second quarter of 2026, the company exceeded 100 cumulative AI fabric customers using Etherlink switches compared with only a handful of early adopters in 2024. Management also expects AI revenues to reach at least $3.6 billion in 2026, supported by scale-up, scale-out and scale-across deployments.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 153.2% over the past year compared with the industry’s 38.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.47, below the industry tally of 5.06.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined 2.5% to 39 cents over the past 60 days, while those for 2027 have increased 2.04% to 50 cents.
Image Source: Zacks Investment Research
Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia uvedla, že výnosy z AI a cloudu se meziročně více než zdvojnásobily a objednávky dosáhly 2,8 miliardy EUR. Zároveň zvýšila výhled růstu tržeb Network Infrastructure na 12–14 %.
Key Takeaways Nokia's shares fell 28.7% in three months amid competition and legacy business weakness.Nokia's AI and Cloud revenues more than doubled, with order intake reaching EUR 2.8 billion.Network Infrastructure sales growth is now expected at 12-14%, led by Optical and IP Networks. Nokia Corporation (NOK - Free Report) shares have declined 28.7% in the past three months compared with the industry’s decline of 9.3%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
Image Source: Zacks Investment Research
The company has underperformed its peers like Arista Networks, Inc. (ANET - Free Report) and Ericsson (ERIC - Free Report) . Shares of Ericsson have declined 18.2%, and shares of Arista have risen 34.6%.
Nokia Plagued by Stiff Competition, Weakness in the Legacy BusinessNokia operates in highly competitive telecommunications equipment markets. In this market, pricing, technology differentiation and customer procurement decisions influence contract awards and long-term profitability. Ericsson, with its robust portfolio strength, remains a major rival. The company is also facing strong competition from Arista in the growing AI networking market as well.
Although Nokia continues to strengthen its AI-native networking portfolio and expand relationships with hyperscale cloud providers, competitors are pursuing similar opportunities across 5G, AI infrastructure and future 6G deployments. Maintaining technology leadership while preserving pricing discipline remains essential as customers balance network modernization against capital spending constraints.
Nokia recorded €390 million of restructuring and associated charges in the second quarter of 2026. It is to be noted that Nokia now expects €800 million of restructuring charges in 2026 and €700-800 million of restructuring-related cash outflows. This also includes €350 million of China integration charges and another €200 million from additional restructuring, primarily in Europe. The restructuring should improve efficiency in the long run; this remains a major drag for near-term profitability.
In the Mobile Infrastructure business, Nokia sales increased 7% year over year, but gross margin declined 70 basis points year over year to 49.3%, while operating margin declined 60 basis points to 11.6%. Mobile Infrastructure remains a major revenue earner for the company. Declining profitability, despite growing revenues, is a major concern.
Nokia Benefits From Strength in AI Infrastructure, Portfolio StrengthNokia continues to benefit from its broad portfolio spanning mobile networks, optical transport, IP routing, fixed broadband, software and services. This integrated offering enables the company to address evolving customer requirements across telecommunications operators, enterprises and hyperscale cloud providers.
Nokia owns approximately 20,000 patents, including around 7,000 patents essential to 5G technologies. Its 5G portfolio continues to gain traction among enterprise customers, supporting recurring opportunities beyond traditional carrier spending cycles.
Network Infrastructure delivered double-digit growth in second-quarter 2026, supported by continued momentum in Optical Networks and IP Networks. Optical Networks business grew 20% year over year in the second quarter, supported by AI & Cloud demand, as well as telecom investment. Nokia is also investing heavily in optical manufacturing capacity, including expanding advanced testing and packaging capacity in Pennsylvania. The company is also developing additional U.S. semiconductor manufacturing capabilities.
Management also increased its expectation for full-year Network Infrastructure sales growth to 12-14%, reflecting continued demand for advanced networking solutions.
Growing investment in AI infrastructure is becoming a more important long-term growth driver for Nokia. During second-quarter 2026, AI and Cloud revenues more than doubled year over year while order intake reached EUR 2.8 billion. Management noted that approximately half of these long-term orders are expected to convert into revenue over the next 12 months.
Estimate Revision TrendThe company’s earnings estimates for 2026 have declined, and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of NOKFrom a valuation standpoint, NOK is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 20.03 forward earnings, lower than 29.87 for the industry and above its mean of 18.77.
Image Source: Zacks Investment Research
End NoteSolid traction in the Optical Networks business and IP networks business, backed by growing AI data center buildout, is the primary growth engine for the company. Comprehensive portfolio strength is a positive factor. However, high restructuring costs, weakness in the legacy telecom business and fierce competition are weighing on the margin. With a Zacks Rank #3 (Hold), Nokia appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia v úterý roste o 3,56 % díky silné poptávce po AI datových centrech a zvýšenému celoročnímu výhledu zisku. Ve druhém čtvrtletí tržby stouply o 8 % na 4,82 miliardy eur.
Nokia Corp (NYSE:NOK) stock is trading higher on Tuesday, driven by sustained artificial intelligence data center demand and a raised full-year profit outlook. Investors are actively re-evaluating the company beyond its traditional telecom focus and pricing it as a key beneficiary of the artificial intelligence boom.
The Nasdaq is down 0.03% while the S&P 500 has gained 0.08%.
• Nokia stock is surging to new heights today. What’s fueling NOK momentum?
Q2 Earnings BeatIn late July, Nokia reported second-quarter results that topped consensus estimates. Net sales rose 8% year-over-year to 4.82 billion euros ($5.60 billion), while adjusted earnings reached eight cents per unit, beating the seven cent expectation. Network Infrastructure revenue grew 12%, propelled by Optical Networks (+19%) and IP Networks (+15%).
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AI Infrastructure GrowthCEO Justin Hotard highlighted Nokia’s expanding reach into AI infrastructure. AI and Cloud revenue doubled (+103%) to represent 9.3% of total sales, backed by 2.8 billion euros in new AI and cloud orders.
Supply Chain StrategyTo address memory shortages expected through 2027, Hotard outlined plans to secure long-term supply deals, adjust product designs, and pass higher costs to buyers.
Nokia Stock: Key Technical Levels To WatchFrom a longer-term view, Nokia is still digesting a huge 12-month run (up 128.41%), but the more recent trend has been choppy: the stock is trading 2.9% below its 20-day SMA and 22.8% below its 50-day SMA, which indicates the intermediate trend remains pressured. At the same time, it’s sitting just 0.5% above its 200-day SMA, putting the stock right on a key "line in the sand" that often decides whether a pullback becomes a deeper trend break.
Key Resistance: $10 — Round-number area where rebounds can stall, especially with the stock still below key shorter-term averages. Key Support: $8 — Nearby level that lines up with a prior buyer-defense zone if the rebound fails. NOK Stock Price Activity: Nokia shares were up 3.56% at $9.46 at the time of publication on Tuesday, according to Benzinga Pro data.
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Nokia rozšiřuje byznys mimo telekomunikace do AI sítí, cloudové konektivity a podnikové infrastruktury. Ve čtvrtletí se jí tržby z AI a cloudu meziročně více než zdvojnásobily díky poptávce po síťové infrastruktuře pro datová centra AI.
Key Takeaways Nokia is expanding beyond telecom through AI networking, cloud connectivity and enterprise infrastructure.NOK's AI and Cloud revenues more than doubled, supported by demand for AI data center networking.Nokia is investing in 5G, Open RAN and optical infrastructure while expanding enterprise opportunities. Nokia Corporation (NOK - Free Report) is evolving beyond its traditional telecom equipment business by expanding into AI networking, cloud connectivity and enterprise infrastructure. As investment in artificial intelligence accelerates, the company is benefiting from rising demand for high-speed networking solutions while continuing to serve wireless operators worldwide. Investors are increasingly evaluating whether this broader business mix can drive sustainable long-term growth despite the cyclical nature of telecom spending.
How Nokia Builds Growth Across Its BusinessNokia operates through four primary business segments: Mobile Infrastructure, Network Infrastructure, Portfolio Businesses and Technology Licensing. Mobile Infrastructure remains the largest contributor, providing radio access products and software for wireless carriers. Meanwhile, Network Infrastructure has become an increasingly important growth engine through its Optical Networks, IP Networks and Fixed Networks businesses, serving telecom operators, cloud providers and enterprise customers.
The Portfolio Businesses segment expands Nokia's software and enterprise offerings, while Technology Licensing generates recurring revenues from one of the industry's largest wireless patent portfolios. This diversified structure helps reduce reliance on any single business while supporting more balanced long-term growth.
Why NOK Is Expanding Beyond Telecom CyclesAI is becoming a major growth driver for Nokia. During the latest quarter, AI and Cloud revenues more than doubled year over year, supported by strong demand for networking infrastructure powering AI data centers. Management also reported robust AI order activity, reinforcing confidence in future revenue opportunities.
Growth in Optical Networks and IP Networks further highlights Nokia's expanding exposure beyond traditional carrier spending. These businesses support hyperscale cloud providers and enterprises building AI infrastructure, creating additional revenue streams that complement the company's mobile networking operations. Similar opportunities are also attracting networking leaders such as Cisco Systems (CSCO - Free Report) and optical networking specialist Ciena Corporation (CIEN - Free Report) as AI infrastructure investment continues to accelerate.
How Nokia Strengthens Its Technology EdgeNokia continues investing in technologies that support long-term competitiveness. Its 5G portfolio, ReefShark chipsets and Open RAN initiatives are designed to improve network performance while lowering customer operating costs. The company also benefits from an extensive patent portfolio that supports recurring licensing revenue in addition to equipment sales.
Management is also expanding manufacturing capabilities and optimizing the business portfolio to focus more heavily on AI networking, optical infrastructure and enterprise solutions. These initiatives strengthen Nokia's position in faster-growing markets while supporting long-term profitability.
What Risks Could Slow NOK's ProgressDespite improving growth prospects, Nokia continues to face several challenges. Telecom capital spending remains cyclical, and customer investment timing can create quarterly revenue volatility. The company also operates in highly competitive networking markets while executing restructuring initiatives designed to improve long-term efficiency.
Additional risks include geopolitical uncertainty, supply constraints and changing global trade conditions, all of which could affect customer demand and project execution. Successfully balancing these challenges while expanding AI-related businesses will remain important for future growth.
How NOK's Ratings Fit the Growth StoryNokia currently carries a Zacks Rank #3 (Hold) with a Value Score of B, Growth Score of C, Momentum Score of A and VGM Score of B. These ratings reflect a company benefiting from improving AI infrastructure demand and attractive valuation characteristics while still facing execution risks and telecom market cyclicality. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Overall, Nokia is building a more diversified networking business by expanding beyond traditional telecom infrastructure into AI, cloud and enterprise networking. While industry headwinds remain, continued strength in Network Infrastructure, licensing and AI-related demand provides meaningful long-term opportunities. The current Hold rating reflects a balanced outlook as investors monitor execution and the pace of AI-driven growth.
Nokia zveřejnila výsledky za 2. čtvrtletí 2026. V prezentaci uvedla, že tempo růstu je počítáno v konstantní měně a ostatní finanční údaje podle srovnatelného vykazování.
Nokia Oyj (NOK) Q2 2026 Earnings Call July 23, 2026 8:00 AM EDT
Company Participants
David Mulholland - Head of Investor Relations
Justin Hotard - President, CEO & Interim President of Mobile Infrastructure
Marco Wiren - Chief Financial Officer
Conference Call Participants
Terence Tsui - Morgan Stanley, Research Division
Simon Leopold - Raymond James & Associates, Inc., Research Division
Sami Sarkamies - Danske Bank A/S, Research Division
Alexander Duval - Goldman Sachs Group, Inc., Research Division
Ulrich Rathe - Bernstein Institutional Services LLC, Research Division
Jakob Bluestone - BNP Paribas, Research Division
Oliver Wong - BofA Securities, Research Division
Richard Kramer - Arete Research Services LLP
Sandeep Deshpande - JPMorgan Chase & Co, Research Division
Sébastien Sztabowicz - Kepler Cheuvreux, Research Division
Robert Sanders - Deutsche Bank AG, Research Division
Artem Beletski - SEB, Research Division
Felix Henriksson - Nordea Markets, Research Division
Presentation
David Mulholland
Head of Investor Relations
Good morning, ladies and gentlemen. Welcome to Nokia's Second Quarter 2026 Results Call. I'm David Mulholland, Head of Nokia Investor Relations. And today with me is Justin Hotard, our President and CEO; along with Marco Wiren, our CFO.
Before we get started, a quick disclaimer. During this call, we will be making forward-looking statements regarding our future business and financial performance, and these statements are predictions that involve risks and uncertainties. Actual results could, therefore, differ materially from the results we currently expect. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the Risk Factors section of our annual report on Form 20-F, which is available on our Investor Relations website.
Within today's presentation, references to growth rates will be on a constant currency basis and other financial items will be based on our comparable reporting. Please note that our Q2 report and a presentation that accompanies this call are published on
Nokia zvýšila celoroční výhled srovnatelného provozního zisku po silném druhém čtvrtletí, kdy jí pomohla poptávka od AI a cloud zákazníků. Srovnatelný provozní zisk vzrostl na 434 milionů eur.
Nokia reported a stronger-than-expected rise in second-quarter comparable operating profit on Thursday, supported by growing demand from artificial intelligence and cloud customers.
The Finnish telecom equipment maker also raised its full-year comparable operating profit guidance range, signalling confidence that the current growth momentum will continue.
The company reported comparable operating profit of 434 million euros ($496.11 million) for the second quarter of 2026.
The figure represented an 18% increase from the same period and exceeded the average analyst estimate of 382 million euros, according to analysts polled by LSEG.
Nokia's results come as the company continues to shift its focus towards supplying fibre-optic equipment to large technology companies building AI data centres.
The strategy has helped the company benefit from rising investment in artificial intelligence infrastructure and increasing demand from cloud customers.
Nokia said comparable net sales reached 4.82 billion euros during the quarter, also exceeding market estimates.
The company reported particularly strong growth among its AI and cloud customers.
Net sales from these customers doubled during the quarter to 446 million euros.
Nokia also said it booked 2.8 billion euros in new orders during the period.
The increase in orders highlights continued demand for infrastructure supporting AI and cloud operations.
CEO Justin Hotard said demand remained strong, while supply constraints continued to affect the wider industry.
"Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders," Hotard said in a statement.
The comments point to continued pressure across the telecom equipment industry as companies seek to manage supply challenges while responding to growing demand linked to AI infrastructure.
Despite the stronger demand environment, Nokia has not been immune to rising costs linked to memory chips.
The rapid expansion of AI has contributed to a sudden increase in memory chip prices.
AI companies have been cornering the market for memory chips, creating pressure for telecom equipment makers and raising concerns about the impact on industry margins.
Nokia's Swedish rival Ericsson warned last week that rising memory chip costs, driven by surging AI demand, were putting pressure on the company.
The warning increased investor concerns that higher costs could affect margins and contributed to a sharp decline in Ericsson's shares.
Nokia's latest results suggest that the company is benefiting from the same AI-driven demand trend while continuing to navigate the supply constraints and cost pressures affecting the broader telecom equipment sector.
Since joining Nokia last year, Hotard has focused on expanding the company's data centre business.
Before joining the Finnish group, he led Intel's Data Center & AI Group.
Under his leadership, Nokia has placed greater emphasis on opportunities created by the growth of AI and data centre infrastructure.
The company has also entered into a billion-dollar deal with chipmaker Nvidia as part of its efforts to expand its position in the data centre market.
The strategy has coincided with a sharp increase in revenue from AI and cloud customers.
Nokia's latest results show that the business is becoming an increasingly important contributor to the company's overall performance.
Nokia also raised its full-year comparable operating profit guidance range following the stronger quarterly performance.
The company now expects full-year comparable operating profit to be between 2.1 billion euros and 2.6 billion euros.
This compares with its previous guidance range of 2 billion euros to 2.5 billion euros.
The upgraded outlook reflects Nokia's stronger second-quarter performance and its expectations for continued growth from AI and cloud customers.
The company, however, continues to operate in an industry facing supply constraints and higher memory chip costs.
While AI-related demand is creating new opportunities, the rising cost of memory chips remains a challenge for telecom equipment manufacturers.
For Nokia, the latest results indicate that its increased focus on AI infrastructure and data centre customers is helping support growth.
The company will continue to balance that demand with supply constraints and cost pressures across the wider industry.
Nokia oznámí hospodářské výsledky za 2. čtvrtletí 23. července; trh čeká tržby 5,59 mld. USD a EPS 7 centů. Firma zároveň rozšiřuje aktivity v oblasti AI a získává nové zákaznické zakázky.
Key Takeaways Nokia reports Q2 2026 earnings July 23, with consensus estimates of $5.59B in sales and EPS of 7 cents.Nokia expanded AI initiatives with a networking lab, AI framework and new industry collaborations.NOK benefits from customer wins and patents, but faces competition and uneven telecom spending. Nokia Corporation (NOK - Free Report) is scheduled to report second-quarter 2026 earnings before market open on July 23. The Zacks Consensus Estimate for sales and earnings is pegged at $5.59 billion and 7 cents per share, respectively. Over the past 60 days, estimates for NOK have remained unchanged for 2026, while it has increased 4.17% to 50 cents for 2027.
NOK Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise HistoryThe leading wireless manufacturer delivered a four-quarter earnings surprise of 2.91%, on average.
Image Source: Zacks Investment Research
Earnings WhispersOur proven model does not conclusively predict an earnings beat for Nokia for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Nokia currently has an ESP of -16.67% and carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping the Quarterly PerformanceDuring the quarter, Nokia introduced an agentic AI framework in its Network Services Platform to enable trust-based AI operations for IP networks, helping service providers improve automation, decision-making, and network efficiency while ensuring secure and reliable network management.
NOK also launched its AI Networking Innovation Lab in Sunnyvale, CA. The facility is designed to accelerate the development, testing and validation of next-generation AI-native data center networking technologies through collaboration with leading AI and cloud ecosystem partners. It has announced a major expansion of advanced semiconductor testing and packaging operations in Pennsylvania, to strengthen U.S. chip capabilities and support rising demand from AI applications and next-generation computing technologies. Such efforts to gain prominence in expanding the AI ecosystem will likely have a positive impact on upcoming results.
In the quarter under review, Virgin Media O2, a leading British telecom company, has opted to leverage Nokia’s AirScale RAN portfolio for 5G Radio Access Network (RAN) deployment and modernization program across the UK. Nokia and Cinia partnered to strengthen Finland’s critical infrastructure with advanced DDoS protection. The collaboration aims to enhance network security, ensure service continuity and safeguard essential digital systems against rising cyber threats across the country. It has also formed a strategic collaboration with Blaize Holdings, Inc. and PT Datacomm to accelerate the deployment of hybrid AI inference infrastructure across Indonesia and the broader Asia-Pacific region. Such growing collaboration with industry leaders and customer wins will likely have a positive impact in upcoming quarters.
The company faces competition in each of its served markets. In the AI data center market, it faces competition from Arista Networks, Inc. (ANET - Free Report) , while Ericsson (ERIC - Free Report) remains a major rival in the legacy telecom space.
Price PerformanceOver the past year, Nokia has surged 113.1% compared with the industry’s growth of 26.4%, outperforming its peers, ANET and ERIC. While Arista has gained 51.1%, Ericsson has soared 31.5% over this period.
Image Source: Zacks Investment Research
Key Valuation MetricFrom a valuation standpoint, Nokia appears to be relatively premium than the industry but above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 22.15 forward sales, higher than 18.91 for the industry and higher than the stock’s mean of 17.81.
Image Source: Zacks Investment Research
Investment ConsiderationNokia is benefiting from growing demand across software, enterprise and cloud-oriented networking markets. The company remains positioned to benefit from passive optical networking deployments and is the only global supplier offering O-RAN with commercial 5G Cloud-RAN networks.
Rapid expansion into the AI infrastructure market is a positive. Its newly launched AI innovation lab is also gaining strong traction. The lab already includes partnerships with major players such as AMD, Lenovo, Viavi, Keysight and Supermicro. Such growing collaboration with industry leaders is expected to drive the adoption of NOK data center switches and increase its overall AI-related revenue opportunity.
Nokia is also embedding AI directly into the operation of broadband networks. The company is introducing AI agents across its Altiplano, Corteca and Broadband Easy platforms, enabling telecom operators to automate network planning, deployment, troubleshooting and customer support. Such initiatives are expected to boost its competitive edge.
Nokia owns approximately 20,000 patents, including around 7,000 patents essential to 5G technologies. Its 5G portfolio continues to gain traction among enterprise customers, supporting recurring opportunities beyond traditional carrier spending cycles. However, Nokia remains exposed to the cyclical nature of telecommunications infrastructure spending. Periods of elevated network investment are frequently followed by slower spending environments, creating variability in revenue growth.
Despite growing AI-related revenues, gaining a leadership position in the AI networking domain remains an uphill task for Nokia due to the presence of strong players such as Arista and HPE. Nokia also generates substantial revenue across international markets and remains exposed to economic slowdowns, political uncertainty, regulatory changes and geopolitical disruptions.
End NoteNokia remains positioned to benefit from increasing demand for next-generation connectivity, given the breadth of its end-to-end portfolio. Growing collaboration with industry leaders and customer wins are positive factors. A comprehensive patent portfolio will likely propel further customer acquisition. However, stiff competition, softness in the mobile infrastructure market and fluctuating spending patterns by telecom players are headwinds. Geopolitical unrest and forex volatility are concerning. Hence, with a Zacks Rank 3 (Hold), Nokia is treading in the middle of the road, and new investors should remain cautious. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia rozšiřuje 5G spolupráci s Taiwan Mobile, aby urychlila přechod k AI-native sítím v Tchaj-wanu. Dohoda má zvýšit kapacitu, automatizaci i energetickou efektivitu sítě.
Nokia and Taiwan Mobile extend 5G partnership to advance AI-powered networks
Nokia's AirScale portfolio and AI-driven software power Taiwan Mobile's 5G network modernization for enhanced performance, automation, and sustainability.New collaboration leverages AI across network intelligence, infrastructure, energy management and resilience to enable advanced 5G services and monetization. 14 July 2026
Espoo, Finland – Nokia today announced it has signed a 5G expansion agreement with Taiwan Mobile to accelerate the evolution toward AI-native mobile networks across Taiwan. The agreement reinforces Nokia’s role as a trusted long-term partner and supports Taiwan Mobile’s goals of enhancing network performance, automation, and sustainability.
Under the agreement, Nokia will deploy its latest AirScale portfolio, including next-generation baseband and radio solutions, alongside advanced software capabilities to enhance Taiwan Mobile’s existing network infrastructure and enable new 5G services and monetization opportunities. The partnership builds on the companies' shared vision of integrating artificial intelligence across mobile networks to create highly automated, resilient and energy-efficient networks capable of supporting the increasing AI traffic.
Driving AI across the network lifecycle
The deployment introduces a comprehensive set of AI-driven capabilities spanning network intelligence, infrastructure, sustainability and resilience:
AI for Network (Intelligence): Nokia will introduce AI-powered software that enables real-time automation and predictive analytics, enhancing operational efficiency and enabling closed-loop network assurance. The agreement includes Predictive Hardware Analytics (PHWA) service and our self-organizing networks solution, MantaRay SON, which uses AI algorithms to automate operations and enhance performance.Network for AI (Infrastructure): Nokia’s next-generation baseband and advanced radio solutions will increase network capacity and uplink performance to meet the demands of new traffic profiles generated by AI applications while delivering superior user experiences.
AI for Energy (Sustainability): Advanced AI-powered energy management algorithms will enable traffic-aware optimization and proactive power savings, helping Taiwan Mobile reduce energy consumption and meet its ESG targets.
AI for GeoStrategy (Resilience): AI-enabled self-healing and traffic steering capabilities will strengthen network resilience, allowing the network to dynamically adapt to changing conditions and maintain service continuity, including in extreme scenarios. Enabling automation, performance, and new services
The new deal will expand 5G capacity and optimize network performance through the deployment of advanced radios and next-generation baseband solutions. These upgrades will support enhanced throughput, improved spectrum efficiency and the delivery of premium user experiences. In parallel, the integration of AI-driven network management and automation solutions will enable predictive maintenance, reduce operational complexity and lower total cost of ownership while supporting the introduction of new 5G capabilities such as slicing and RedCap.
Supporting sustainability and long-term network evolution
Nokia’s energy-efficient hardware combined with AI-driven software will help Taiwan Mobile reduce power consumption and enable more sustainable network operations. This supports the operator’s ambition to build a low-carbon, high-efficiency network while improving overall operational performance.
“We are extending our long-standing partnership with Taiwan Mobile, helping accelerate its journey toward AI-native networks. Our advanced radio and baseband solutions and AI-driven software deliver intelligent automation, enhanced performance and improved energy efficiency, setting the foundation for 5G-Advanced and beyond. The future-ready network enables Taiwan Mobile to deliver increasing volumes of AI traffic, provide new types of services and progress toward its sustainability targets,” said Mark Atkinson, Head of RAN at Nokia.
Jamie Lin, President of Taiwan Mobile, said: “Our collaboration with Nokia is a key pillar in our strategy to build a high-performance, resilient and sustainable network that powers our fast-growing and ever-expanding Telco+Tech businesses. By integrating AI across our network for better energy optimization, resilience and service innovation, we are creating a platform that supports next-generation applications delivered with industry-leading experiences for our customers. This long-term partnership that focuses on win-win enables us to accelerate our leadership position as the go to partner in AI era and unlock new exponential growth opportunities.”
Multimedia, technical information and related news
Product Page: AirScale Radio Access
Product Page: MantaRay SON
Product Page: AI-RAN
About Nokia
Nokia is a global leader in connectivity for the AI era. With expertise across fixed, mobile, and transport networks, we’re advancing connectivity to secure a brighter world.
Nokia získala zakázku od Orange Belgium jako jediný dodavatel pro modernizaci transportní infrastruktury a sjednocení pevných i mobilních sítí. Akcie NOK přesto v předobchodní fázi klesly o 3,92 % na 12,02 USD.
Nokia stock is among today’s weakest performers. Why are NOK shares down? What Is Nokia’s Catalyst with Orange Belgium?Orange Belgium has selected Nokia as the sole supplier to modernize its transport infrastructure by converging fixed and mobile networks into a unified optical transport network across Belgium, using Nokia’s AI-powered WaveSuite automation platform. The multi-year build is designed to improve resilience, security, and scalability as bandwidth demand rises from AI, remote work, video streaming, gaming, and cloud services.
Nokia is also leaning into automation partnerships that traders are treating as a "prove-it" pipeline for incremental orders, with its Autonomous Networks Fabric positioned around "Level 4" autonomy and targeted for availability later this year. In parallel, Nokia is building six Gemini-powered agents aimed at telecom workflows, with a claim that troubleshooting time can drop 50% to 80%.
NOK Technical Analysis: Key Levels To WatchThe bigger-picture trend is still constructive after a 143.86% run over the past 12 months, and the stock remains well above its longer-term baselines (about 8.8% above the 100-day SMA and about 39.9% above the 200-day SMA). But the near-term tape is clearly in "pullback mode," with shares trading about 11.8% below the 20-day SMA and about 12.5% below the 50-day SMA.
The moving-average stack is mixed: the 20-day SMA is below the 50-day SMA (a bearish near-term crossover), while the 50-day SMA remains above the 200-day SMA (the golden cross that occurred in October 2025 is still intact). That combination often reads as a longer-term uptrend that’s cooling off and trying to find a new base.
For momentum, MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing unless buyers can reclaim key moving averages. In plain terms, MACD compares faster and slower trend signals—when it’s below the signal line, momentum is typically weakening rather than building.
Key Support: $10.00 — a nearby round-number level that can act as a decision point if the pullback extends What Is Nokia’s Business Model?Nokia is a networking equipment vendor focused primarily on supporting wireless networks and, to a growing extent, Internet Protocol and optical systems. It operates across mobile infrastructure (wireless core and enterprise wireless), network infrastructure (IP, optical, and fixed-network gear like routing/switching and fiber access), and a portfolio segment that houses businesses viewed as less central longer term.
That mix matters for the Orange Belgium win because it’s directly tied to optical transport and automation—areas where carriers are trying to simplify operations while scaling capacity. The project’s stated support for traffic from 1G to 400G and beyond also fits the broader push to upgrade backbone networks for AI-era bandwidth needs.
Nokia Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Nokia’s Benzinga Edge signal reveals a momentum-led profile with supportive quality, but only middling value. For longer-term bulls, the setup is most compelling if the stock can stabilize above key support and then work back toward the 50-day area without breaking the longer-term uptrend.
NOK Price Action: Tuesday Premarket ActivityNOK Stock Price Activity: Nokia shares were down 3.92% at $12.02 during premarket trading on Tuesday, according to Benzinga Pro data.
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Nokia získala víceletou zakázku jako jediný dodavatel pro modernizaci transportní sítě Orange Belgium. Nasadí platformu 1830 PSS a AI software WaveSuite pro sjednocenou optickou síť.
Key Takeaways Nokia will be the sole supplier for Orange Belgium's large-scale transport network modernization.NOK will merge Orange Belgium's fixed and mobile transport systems into one converged optical network.Nokia will deploy 1830 PSS and AI-powered WaveSuite to boost speeds, reliability and service delivery. Nokia Corporation (NOK - Free Report) has secured a multi-year contract with Orange Belgium to upgrade the latter’s transport network, strengthening its position in advanced telecom infrastructure and optical networking. The deal expands Nokia’s role in supporting high-capacity connectivity as demand rises from AI, cloud computing, 5G, streaming, gaming and remote work.
Under the agreement, Nokia will serve as the sole supplier for Orange Belgium’s large-scale network modernization project. The company will combine the operator’s fixed and mobile transport systems into a converged optical network, improving efficiency, resiliency and service readiness for future high-bandwidth services.
Nokia will deploy its 1830 Photonic Service Switch platform (PSS), supporting speeds from 1G to 400G and beyond for faster and more reliable data transmission across Belgium. It will also provide its AI-powered WaveSuite automation software to simplify network management, improve operational performance and speed up service delivery.
With global telecom operators accelerating next-generation infrastructure investments, Nokia is likely to capitalize on growing modernization opportunities, supporting its long-term growth prospects.
How Are Competitors Performing in the Networking Ecosystem?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson is focusing on 5G, network slicing, AI-driven networks and future 6G development. It is expanding private 5G solutions for enterprises. Ericsson is expanding Open Radio Access Network and automation capabilities across global markets.
Cisco is expanding its AI-ready networking solutions to support growing enterprise data traffic. The company is enhancing secure networking through automation and cloud-managed infrastructure. Cisco is investing in high-speed switching, routing and data center connectivity technologies.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 132.5% over the past year compared with the industry’s 40.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.78, below the industry tally of 5.07.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have remained static at 40 cents over the past 60 days, while those for 2027 have also increased 2.1% to 49 cents.
Image Source: Zacks Investment Research
Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia rozšiřuje spolupráci s Amazonem na provoz Autonomous Networks Fabric na AWS a zároveň s Alphabetem vytváří šest agentů pro telekomunikační workflow. Akcie jsou v krátkodobém ochlazení, i když dlouhodobý trend zůstává býčí.
Here is a breakdown of what is driving Thursday’s market action.
Nokia shares are showing limited movement. What should traders watch with NOK? What Is Driving Nokia’s Recent Collaborations?Nokia’s latest headline is an expanded collaboration with Amazon to run its Autonomous Networks Fabric on AWS, positioning the offering around "Level 4" autonomy for telecom operators and targeting product availability later this year.
In parallel, the company is also building six Gemini-powered agents with Alphabet aimed at telecom workflows, with an efficiency claim that troubleshooting time can drop 50% to 80%.
With futures green, Nokia’s slightly red print reads more like a pause after a big move than a risk-off wave, especially as traders wait to see whether the AI-automation narrative translates into sustained orders and margin mix. In that setup, the chart tends to matter more than the headline, because it defines where dip-buyers are likely to defend the trend.
Nokia Stock: Key Technical Levels to WatchThe longer-term trend still leans bullish, with the stock up 148.27% over the past 12 months and still trading 17.1% above its 100-day SMA ($11.00) and 50.6% above its 200-day SMA ($8.56). The golden cross from October 2025 (50-day SMA above the 200-day SMA) remains intact, which often keeps buyers interested on pullbacks as long as price holds well above those longer baselines.
Near-term, the stock is in a cooling phase: it’s trading 8.8% below the 20-day SMA ($14.14) and 6% below the 50-day SMA ($13.71), even though the 20-day SMA is still above the 50-day SMA (a constructive alignment). That combination usually says "trend up, momentum cooling," and it puts extra focus on whether price can reclaim the 50-day area to signal demand is returning.
For momentum, MACD is the cleaner read right now: it’s below its signal line and the histogram is negative, which points to upside pressure fading versus the prior upswing. In plain terms, MACD compares faster and slower trend momentum, and being below the signal line often means rallies can struggle until momentum improves.
Key Resistance: $15.00 — a round-number ceiling where rebounds can stall, especially after the stock has been trading below its 20-day and 50-day averages What Does Nokia Corporation Do?Nokia is a networking equipment vendor focused primarily on supporting wireless networks and, to a growing extent, Internet Protocol and optical systems. It operates across mobile infrastructure (wireless core and related software), network infrastructure (IP routing/switching, optical, and fixed-network gear), and a portfolio business that houses areas the company views as less central long term.
That business mix is why the AWS and Google Cloud angles matter: pushing autonomous networking and AI-driven operations deeper into carrier workflows can shift the story toward more software-led efficiency and services pull-through, not just hardware cycles. For the stock, the key question is whether these partnerships drive durable operator adoption quickly enough to re-accelerate momentum after the recent digestion.
Nokia Earnings Preview: What Analysts ExpectLooking further out, the next major catalyst for the stock arrives with the July 23, 2026 (confirmed) earnings report.
EPS Estimate: 7 cents (Up from 4 cents YoY) Revenue Estimate: $5.59 Billion (Up from $5.15 Billion YoY) Valuation: P/E of 81.0x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $14.67. Recent analyst moves include:
JP Morgan: Overweight (Raises Target to $21.00) (June 12) Argus Research: Upgraded to Buy (Target $15.00) (April 27) Morgan Stanley: Initiated with Overweight (Target $8.00) (Feb. 9) How $1,000 in Nokia Would Have GrownA $1,000 investment in Nokia Corporation on July 2, 2021, would have grown to $2,404 by July 1, 2026 — a 140.4% return over the period, excluding dividends. The stake swung between $559 and more than $3,000, ending well below its 2026 peak.
The ride included a deep slump before the rebound: the position hit its period low on December 5, 2023, and later reached its period high on June 2, 2026. From peak to trough, the maximum drawdown over the five-year holding period was -52.7%. Along the way, the $1,000 stake was $847 on July 5, 2022, $790 on July 3, 2023, $724 on July 2, 2024, and $968 on July 2, 2025.
On an annualized basis, Nokia Corporation returned 19.2% over the period, ahead of the S&P 500’s 11.6% annualized gain. It also outpaced the Nasdaq 100, which returned 15.3% annualized.
Today, Nokia Corporation has a market capitalization of about $71.4 billion. The stock’s P/E ratio is 81.0, and it offers a dividend yield of 1.27%.
Nokia Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Nokia’s Benzinga Edge signal reveals a momentum-led profile with supportive quality, which fits a stock that’s still in a longer-term uptrend but cooling in the short term. If momentum reasserts and price can work back toward key moving averages, the setup improves; if not, traders may keep treating rallies as sellable until the trend firms up again.
Nokia Stock Price Movement in Premarket TradingNOK Stock Price Activity: Nokia shares were down 0.31% at $12.87 during premarket trading on Thursday, according to Benzinga Pro data.
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Nokia v 1. čtvrtletí 2026 zvýšila tržby z AI a cloudu o 49 % a získala zakázky v hodnotě 1 miliardy eur. Firma zároveň rozšiřuje AI networking prostřednictvím Google Cloud, AWS a investic v USA.
Key Takeaways Nokia's AI & Cloud revenues rose 49% in Q1 2026, with 1 billion euro in orders highlighting strong demand.NOK is expanding AI networking through Google Cloud, AWS and U.S. manufacturing investments.Nokia faces telecom weakness, higher AI spending, intense competition and geopolitical risks. Nokia Corporation (NOK - Free Report) shares have gained 105.2% year to date compared with the industry’s growth of 27.8%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
Image Source: Zacks Investment Research
The company has outperformed its peers like Arista Networks, Inc. (ANET - Free Report) and Ericsson (ERIC - Free Report) . Shares of Ericsson have jumped 15.5%, and shares of Arista have gained 29.6%.
NOK Rides on Strength in Multiple DomainsThe AI and Cloud networking business is becoming a major growth engine for Nokia. AI data centers require massive optical interconnects, IP routing and cloud networking infrastructure. The market is expected to grow at a substantial rate in the upcoming quarters. Recognizing this trend, Nokia is positioning itself as a major player in the AI data center domain and moving beyond merely a telecom equipment vendor.
During the first quarter of 2026, AI & Cloud revenue surged 49% year over year. The company secured €1 billion of AI & Cloud orders during the quarter, highlighting robust customer demand. The company expects the addressable AI & Cloud market to grow at a 27% CAGR between 2025 and 2028, up from its previous estimate of 16%.
Optical Networks remains Nokia's fastest-growing infrastructure segment. Growing AI cluster buildout by hyperscalers is driving demand for high-capacity optical transport networks. Nokia won several AI-related design wins for optical pluggables and line systems. A book-to-bill ratio well above one indicates strong order intake.
The company recently expanded its partnership with Google Cloud by embedding Gemini-powered AI agents into the Nokia Assurance Center. The AI agents automate network troubleshooting, anomaly detection, root cause analysis and network optimization. Such features significantly reduce network operators' maintenance costs and downtime and improve efficiency. It has also expanded its partnership with AWS. This brings capabilities such as AI-powered orchestration, digital twin simulations, intent-based networking and agentic AI operations. Unlike hardware, network automation software generates higher margins and recurring revenue. Expansion of the software mix can improve profitability over time.
Nokia is expanding its U.S. semiconductor advanced test and packaging operations. AI infrastructure demand is outpacing supply. The expansion initiative is a part of a broader $4 billion U.S. investment in AI-ready networking. This will allow NOK to meet increasing customer demand and boost its competitive edge against other major AI networking rivals such as Arista and HPE.
Major Challenges for NOKDespite growth in its AI and cloud business, Nokia still derives the majority of its revenues from the legacy telecom business. High debt levels and slow subscriber additions are making telecom operators cautious regarding their spending decisions. NOK’s North America business continued to experience weakness due to the loss of a major contract in late 2023.
To capture AI demand, Nokia is increasing capital spending. These investments increase near-term costs. Moreover, Nokia faces strong competition from other major players, such as ANET and HPE, in this vertical. It is to be seen how Nokia can navigate this growing competition in the AI networking space and generate sustained returns on investments. In its traditional mobile infrastructure business, it faces competition from Ericsson.
Nokia remains exposed to the cyclical nature of telecommunications infrastructure spending. Periods of elevated network investment are frequently followed by slower spending environments, creating variability in revenue growth. It generates substantial revenues across international markets and remains exposed to economic slowdowns, political uncertainty, regulatory changes and geopolitical disruptions. These factors can affect customer spending decisions, supply chains and project timing.
Estimate Revision TrendEarnings estimates for the company for 2026 have remained unchanged, while for 2027, they have improved over the past 60 days.
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Key Valuation Metric of NOKFrom a valuation standpoint, NOK is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 29.85 forward earnings, lower than 32.19 for the industry but above its mean of 16.85.
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End NoteNokia is benefiting from strong traction in the optical networking vertical. Collaboration with industry leaders such as Google and AWS will propel innovation. Manufacturing capacity expansion to support growing customer demand in the AI networking space is a positive factor. However, the company faces stiff competition in the mobile infrastructure and AI networking markets. Growing geopolitical volatility and macro headwinds remain a concern. With a Zacks Rank #3 (Hold), Nokia appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nokia rozšiřuje spolupráci s AWS na autonomních sítích pro éru AI, s dostupností produktu později v letošním roce. Akcie v premarketu klesly o 3,79 % na 13,45 USD.
Nokia stock is among today’s weakest performers. Why is NOK stock falling? What Is Driving Nokia’s AWS Collaboration?Nokia’s latest catalyst is the expanded AWS collaboration aimed at "autonomous networks built for the AI era," with its Autonomous Networks Fabric set to run on AWS so telecom operators can move more of their operational stack into the cloud. The companies are positioning the integration around Level 4 autonomy using AI and cloud services, with product availability expected later this year.
Nokia’s pitch leans on unifying data management, agentic AI, digital twin simulations, and intent-based networking to drive "step-change efficiency," with the company’s CTO for AI and Autonomous Networks saying, "This is how telcos will compete in the AI era."
Nokia also has a separate AI-automation thread running through its Google Cloud partnership, where it’s building six specialized Gemini-powered agents for telecom workflows like event triage, anomaly detection, KPI analysis, and remediation recommendations. The companies said the system can cut troubleshooting times 50% to 80%, a concrete efficiency claim that can influence how investors model software-led margin upside.
Nokia Stock: Key Technical Levels To WatchEven with the premarket dip, the longer-term trend still leans bullish: the stock is up 170.93% over the past 12 months and remains well above its 100-day SMA ($10.75) and 200-day SMA ($8.39). The golden cross that formed in October 2025 (50-day SMA above the 200-day SMA) is still intact, which often keeps dip-buyers engaged as long as price holds near those longer averages.
Near-term, the chart looks more like a digestion phase than a breakdown, with price at $13.45 sitting just under the 50-day SMA ($13.49) and below the 20-day SMA ($14.69). That matters because the 20-day SMA is still above the 50-day SMA (a bullish alignment), but the stock needs to reclaim the short-term average to signal that buyers are taking control again.
RSI is the cleaner momentum read right now: at 48.90, it’s neutral and suggests the prior upside momentum has cooled rather than flipped into an oversold washout. In plain terms, RSI helps gauge whether a move is getting stretched, and this reading points to balance—neither panic selling nor overheated buying.
Key Resistance: $15.00 — a round-number ceiling that lines up with a nearby rebound-stall zone if the stock tries to bounce back above its short-term averages – Key Support: $13.00 — a nearby floor that sits close to the 50-day moving-average area where trend buyers often defend pullbacks
What Does Nokia Corporation Do?Nokia is a networking equipment vendor focused primarily on supporting wireless networks and, to a growing extent, Internet Protocol and optical systems. The firm operates three segments spanning mobile infrastructure (wireless core and related software), network infrastructure (IP routing/switching, optical, and fixed-network gear), and a portfolio bucket of businesses it views as less central longer term.
That mix is why the AWS tie-up matters to the stock narrative: it’s aimed at pushing more telecom operations into the cloud while layering in AI-driven automation (including agentic AI, digital twin simulations, and intent-based networking). If operators adopt that approach, it can support a more software- and services-oriented angle alongside the company’s traditional hardware footprint.
Nokia Earnings Preview: July 2026 EstimatesLooking further out, the next major catalyst for the stock arrives with the July 23, 2026 (confirmed) earnings report.
EPS Estimate: 7 cents (Up from 4 cents YoY) Revenue Estimate: $5.59 Billion (Up from $5.15 Billion YoY) Valuation: P/E of 87.8x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $14.67. Recent analyst moves include:
JP Morgan: Overweight (Raises Target to $21.00) (June 12) Argus Research: Upgraded to Buy (Target $15.00) (April 27) Morgan Stanley: Initiated with Overweight (Target $8.00) (Feb. 9) Nokia Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Nokia’s Benzinga Edge signal reveals a momentum-led setup with supportive quality, but a less forgiving valuation backdrop. For longer-term bulls, the key is whether the stock can hold the $13.00 area and rebuild strength back toward $15.00 without losing the 50-day trend zone.
Nokia Stock Price Action in Premarket TradingNOK Stock Price Activity: Nokia shares were down 3.79% at $13.45 during premarket trading on Friday, according to Benzinga Pro data.
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Nokia a AWS rozšiřují spolupráci, aby operátorům nabídly autonomní sítě pro éru AI a přesunuly celý provozní stack do cloudu. Dostupnost se očekává později letos.
Press Release
Nokia, Amazon Web Services expand collaboration to deliver autonomous networks built for the AI era
Leveraging AWS’s AI and cloud services, Nokia’s Autonomous Network Fabric will help operators transition to networks that operate at machine speed to connect intelligence. 24 June 2026
Espoo, Finland — Nokia and Amazon Web Services (AWS) today announced they are expanding their collaboration to deliver autonomous networks built for the AI era, making it easier for telecommunication providers to run their full operational stack in the cloud.
Nokia and AWS are collaborating to run Nokia’s Autonomous Networks Fabric on AWS, giving operators access to advanced AI and cloud services required for Level 4 autonomy. This builds on a set of existing digital operations applications from Nokia — covering orchestration, assurance, and unified inventory — already on the platform. Availability is expected later this year.
Nokia’s Autonomous Network Fabric weaves together a broad portfolio that delivers intent-based service orchestration across multi-domain, multi-vendor networks; provides 360-degree observability with AI-powered anomaly detection, root cause analysis, and closed-loop resolution; and offers a single source of truth for network topology and resources.
The Fabric unifies observability, analytics, security, and automation through four core capabilities:
Unified Data Management across domains.Agentic AI for service operations and optimization.Digital Twin simulations for proactive impact assessment.Intent-Based Networking that translates business goals into automated closed-loop actions. ‘This is how telcos will compete in the AI era’
While legacy network management tools require teams of experts to manually oversee mobile, fixed, and transport networks in silos, Nokia helps operators evolve from static infrastructures to programmable, AI-native platforms that anticipate changing traffic mixes and operate at machine speed to connect intelligence.
“Autonomous networks have gone from far-off vision to business imperative. At Nokia, we move operators toward greater autonomy through the convergence of intent-based networking, agentic AI, and cloud-native architecture. Together with AWS, we’re building a platform that scales operators’ ambitions while maintaining the control and governance they need. This is how telcos will compete in the AI era,” said Oguz Sunay, CTO, AI and Autonomous Networks, Nokia.
Running on AWS, Nokia’s solutions gain elastic scalability, global availability, and broad model choices through cloud AI and ML services — including Amazon Bedrock and Amazon SageMaker — enabling operators to innovate faster while reducing infrastructure costs. Nokia is also engineering an optimized cloud footprint that minimizes compute and storage requirements versus traditional on-premises deployments.
“The shift to autonomous network operations is ultimately about speed and step-change efficiency. Speed to detect, speed to resolve, speed to monetize. Achieving step-change cost efficiency is critical for customers to unlock agentic value in the AI era. Nokia’s decision to optimize its full operational stack on AWS means operators can take advantage of elastic scalability, purpose-built AI and ML services, and the most extensive global infrastructure footprint for wherever their networks operate. Together, we're compressing years of transformation into months, delivering step-change improvements in cost efficiency and revenue growth,” said Amir Rao, global director for Telco Solutions at AWS.
Cloud-based network innovation
Today’s news is the latest in a series of announcements between Nokia and AWS related to cloud-based network innovation. At MWC in March, the companies showcased the industry’s first agentic AI-powered network slicing alongside du and Orange. In February, they announced the world’s first commercial mobile service on 5G Core SaaS, running on Belgium’s Citymesh network.
In addition to these developments, Nokia’s autonomous networks portfolio is already delivering measurable results, with operators achieving automation rates exceeding 90%, service delivery times of four hours or less, and service interruption periods of one minute per year or fewer — along with up to 85% reduction in slice rollout time and up to 50% fewer customer-impacting incidents.
Nokia and AWS are committed to a collaborative innovation agenda that combines Nokia’s telecom-trained AI models and domain expertise with AWS’s AI services to deliver increasingly autonomous network operations. Together, the companies will go to market to help operators evolve their operational stacks, increase autonomous operations and unlock new revenue streams.
Multimedia, technical information and related news
Web Page: Autonomous Networks
Product Page: Digital Operations Center
Press release: Nokia and AWS showcase industry-first agentic AI-powered network slicing with du and Orange #MWC26
Press release: Citymesh goes live with world’s first commercial mobile service on 5G Core SaaS, powered by Nokia and AWS
About Nokia
Nokia is a global leader in connectivity for the AI era. With expertise across fixed, mobile, and transport networks, we're advancing connectivity to secure a brighter world.
About Amazon Web Services
Amazon Web Services (AWS) is guided by customer obsession, pace of innovation, commitment to operational excellence, and long-term thinking. By democratizing technology for nearly two decades and making cloud computing and generative AI accessible to organizations of every size and industry, AWS has built one of the fastest-growing enterprise technology businesses in history. Millions of customers trust AWS to accelerate innovation, transform their businesses, and shape the future. With the most comprehensive AI capabilities and global infrastructure footprint, AWS empowers builders to turn big ideas into reality. Learn more at aws.amazon.com and follow @AWSNewsroom.
Nokia po akvizici Infinery těží z rostoucí poptávky po optických sítích pro AI datová centra. V 1. čtvrtletí vzrostly tržby od AI a cloud zákazníků o 49 % meziročně.
Nokia (NOK 0.66%) shares have climbed 175% over the past year. This followed its February 2025 acquisition of Infinera, extending its capabilities in optical networking, which is seeing growing demand from data centers that need faster data transmission for artificial intelligence (AI).
Despite the stock's monster run, Nokia is just getting started with its pivot to tackle this opportunity. Wall Street is still catching up to the new reality of this networking infrastructure leader, particularly what this could do to earnings growth. Here's why it's not too late to consider buying the stock.
Image source: Getty Images.
Accelerating growth in AI Nokia has quietly turned itself into a vertically integrated powerhouse of optical networking products, including owning a manufacturing facility in San Jose, California, that produces the indium phosphide material used to make optical semiconductors. AI data center demand is soaring for advanced digital signal processors and pluggable optics, such as 800G coherent optics, with industry forecasts pointing to a multibillion-dollar opportunity over the long term.
The opportunity is already showing up in Nokia's latest quarterly results. In the first quarter, Nokia reported total sales growth of just 4%, but the real story was the 49% year-over-year increase in net sales from AI and cloud customers. Sales in its optical networks segment alone grew 20%.
This statement from CEO Justin Hotard suggests this is just the beginning: "We are increasing our growth assumption for Optical and IP Networks, and we are investing to capture accelerating demand from AI and cloud customers."
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The big picture Nokia is tapping into a big tailwind. The Motley Fool's research found that leading hyperscalers plan to increase capital spending by at least 45% this year, bringing total spending to at least $600 billion. A significant portion of this spending goes to support additional AI infrastructure and data centers.
The company sees its AI and cloud addressable market growing at an annualized rate of 27% through 2028. It faces competition from Ciena, Arista Networks, and Cisco Systems, but the Infinera acquisition was a game changer. It has significantly boosted Nokia's competitive standing in the networking infrastructure market, specifically in meeting demand for AI data centers.
Usually, when companies are transitioning their business strategy, like Nokia is doing now, it can take Wall Street a few years to catch on and fully re-rate the stock. The one thing that Wall Street might still be underestimating is future earnings, as Nokia shifts its sales mix toward high-margin advanced optical chips.
Analysts forecast Nokia's earnings will nearly double from 2025 levels by 2028. That's enough growth to push the stock higher. It's not cheap, but trades at a reasonable forward price-to-earnings multiple for a growth stock, about 35, based on this year's estimate.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks, Ciena, and Cisco Systems. The Motley Fool has a disclosure policy.
