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.
Key Takeaways Nokia delivered an earnings beat as AI and Cloud revenue more than doubled despite mixed revenue.NOK is gaining from AI networking, optical transport and enterprise connectivity growth opportunities.Nokia maintained full-year operating profit guidance while telecom spending remains uneven. Nokia Corporation (NOK - Free Report) offers investors a balanced investment case as growing demand for AI infrastructure helps offset continued weakness in parts of the telecom equipment market. The company is benefiting from investments in cloud networking, optical transport and enterprise connectivity, while traditional carrier spending remains uneven. The key question is whether these emerging growth drivers can support stronger long-term performance despite ongoing industry and execution risks.
Why NOK Delivered a Mixed QuarterNokia's latest quarterly results reflected both progress and persistent headwinds. The company delivered an earnings beat, supported by improved profitability, with comparable gross margin rising to 46% and comparable operating margin reaching 9%. Management also reaffirmed its full-year operating profit guidance, signaling confidence in business fundamentals.
However, revenue performance remained mixed as spending by telecom operators varied across regions. Network Infrastructure stood out with strong growth, while AI and Cloud revenues more than doubled from the prior-year quarter. The results suggest Nokia is benefiting from newer growth markets even as parts of its traditional telecom business continue to recover.
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Where Nokia Finds Its Biggest CatalystsAI infrastructure is becoming one of Nokia's strongest growth opportunities. Demand for high-capacity networking supporting AI data centers is driving momentum across Optical Networks and IP Networks, while enterprise customers continue investing in cloud connectivity and digital transformation projects. Management also highlighted strong AI order activity, providing additional visibility into future revenue growth.
The company's extensive patent portfolio and licensing business further diversify earnings by generating recurring royalty revenues. Combined with expanding enterprise relationships, these businesses reduce Nokia's dependence on carrier spending alone. Similar trends are benefiting networking companies such as Cisco Systems (CSCO - Free Report) and Arista Networks (ANET - Free Report) as enterprises and cloud providers continue investing in AI networking infrastructure.
What Could Limit Nokia's UpsideDespite improving fundamentals, Nokia continues to face several challenges. Telecom infrastructure spending remains cyclical, making quarterly results sensitive to customer investment timing. The company is also executing restructuring initiatives that are expected to improve long-term efficiency but may continue to create near-term costs and execution risks.
Competition across networking markets remains intense, particularly as vendors race to capture AI infrastructure opportunities. In addition, supply constraints, geopolitical uncertainty and changing trade conditions could influence customer spending and project deployments, creating further variability in financial performance.
How NOK's Valuation Supports the DebateNokia's valuation reflects a balanced outlook. NOK shares continue to trade at reasonable valuation multiples relative to both historical levels and industry peers, indicating that investors recognize the company's improving fundamentals while remaining mindful of execution risks.
As AI networking and enterprise infrastructure become larger contributors to the business, Nokia could benefit from a more diversified earnings profile. However, the pace of telecom market recovery and successful execution of its strategic initiatives will likely remain key factors influencing investor sentiment.
How NOK's Ratings Guide Investors TodayNokia currently carries a Zacks Rank #3 (Hold), along with a Value Score of B, Growth Score of C, Momentum Score of A and VGM Score of B. These ratings indicate that while the company is benefiting from strong momentum and attractive valuation characteristics, investors may prefer to see further evidence of sustained earnings growth before taking a more bullish view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Overall, Nokia is strengthening its position in AI networking while maintaining leadership across several communications infrastructure markets. Expanding demand for optical networking, enterprise connectivity and licensing provides encouraging long-term opportunities, but telecom spending cycles and execution risks remain important considerations. The current Hold rating reflects a balanced investment outlook as the company's transformation continues.
Key Takeaways Nokia beat earnings estimates as comparable gross margin rose to 46% and operating margin reached 9%.NOK's AI and Cloud revenue more than doubled, led by Optical Networks and IP Networks growth.Nokia reaffirmed euro 2.1B-2.6B operating profit guidance despite negative quarterly cash flow. Nokia Corporation's (NOK - Free Report) latest quarterly results reflected both encouraging operational progress and ongoing industry challenges. The company reported earnings that exceeded expectations, supported by stronger margins and robust performance in several businesses, but revenue came in slightly below forecasts as telecom spending remained uneven across key markets. The quarter illustrates how Nokia is benefiting from growing demand for AI networking and cloud infrastructure while continuing to navigate restructuring efforts and cyclical carrier investment.
Key Takeaways From Nokia's Quarterly ResultsNokia's latest quarter demonstrated improving operational execution despite a mixed top-line performance. The company reported an earnings beat as stronger margins and disciplined cost management helped offset softer-than-expected revenue. Comparable gross margin increased to 46%, while comparable operating margin reached 9%, reflecting improved profitability even as reported results continued to be affected by restructuring-related charges. Management also reaffirmed its full-year comparable operating profit outlook, indicating confidence that underlying business trends remain on track.
The results suggest Nokia is making progress on improving the quality of its earnings rather than simply pursuing revenue growth. Higher-margin businesses and ongoing efficiency initiatives supported profitability, although uneven customer spending continued to weigh on overall sales performance.
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The Growth Drivers Behind Nokia's ResultsNetwork Infrastructure remained Nokia's strongest-performing segment, driven by continued momentum in Optical Networks and IP Networks as enterprises and hyperscale cloud providers expanded AI infrastructure investments. AI and Cloud revenues more than doubled from the prior-year period, highlighting the company's growing exposure to structural technology trends beyond traditional telecom spending.
Technology Licensing also remained an important contributor by generating recurring royalty income from Nokia's extensive patent portfolio. Regionally, the company saw encouraging performance across the Americas and EMEA, while results in APAC reflected a more mixed demand environment. Similar AI-driven networking opportunities are also supporting industry peers such as Cisco Systems (CSCO - Free Report) and Ciena Corporation (CIEN - Free Report) as cloud infrastructure investment continues to accelerate.
Why Cash Flow Deserves AttentionWhile profitability improved, cash flow remained an area investors should monitor. Nokia reported negative operating cash flow and free cash flow during the quarter, primarily reflecting working capital movements, restructuring-related cash payments and ongoing capital investments. These factors pressured near-term cash generation despite stronger operating performance.
Even so, the company continues to maintain a solid liquidity position, providing flexibility to fund strategic investments, restructuring initiatives and manufacturing expansion. Management expects cash flow to improve as working capital normalizes and operational efficiencies continue to take effect.
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What Nokia's Outlook Says About Future ResultsManagement reaffirmed its full-year comparable operating profit guidance of €2.1 billion to €2.6 billion and continues to expect solid free cash flow conversion over the course of the year. The company also anticipates continued strength in Network Infrastructure, supported by growing demand for Optical Networks and IP Networks tied to AI and cloud deployments.
Alongside these growth opportunities, Nokia continues investing in manufacturing capacity and technology development to support future demand. While telecom spending remains uneven, management believes expanding exposure to enterprise networking and AI infrastructure should help improve the company's long-term financial profile.
How NOK's Ratings Reflect the Financial PictureNokia 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 that is showing improving operational execution and strong momentum while still working through restructuring activities and uneven revenue trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Overall, Nokia's latest financial results point to a business that is gradually strengthening its fundamentals. Margin improvement, Network Infrastructure growth and rising AI-related demand provide encouraging signs for the future, while cash flow execution and telecom market conditions remain important areas to watch. The current Hold rating reflects this balanced financial picture as the company's transformation continues.
Key Takeaways Nokia highlighted AI and cloud demand as a key growth driver with Network Infrastructure gains.NOK reported AI and cloud sales more than doubled year over year, with EUR 2.8B order intake.Nokia is expanding optical capacity in the U.S. while investing in AI-related networking growth. Nokia Oyj (NOK - Free Report) used its second-quarter earnings call to highlight accelerating demand tied to artificial intelligence (AI) and cloud infrastructure, while management emphasized investments, restructuring and supply capacity expansion.
The company maintained its outlook and pointed to AI-driven growth in optical and IP networking as a key focus area entering the second half of 2026.
NOK Targets AI Infrastructure GrowthCEO Justin Hotard said Nokia’s strategy is centered on capturing opportunities from the AI supercycle, with early progress reflected in stronger Network Infrastructure results. He highlighted AI and cloud sales growth, broader customer demand and continued investment in differentiated connectivity technologies.
The company reported second-quarter net sales growth of 9% on a constant currency basis, with the comparable operating margin expanding to 9%. Network Infrastructure revenues increased 12%, driven by Optical Networks and IP Networks.
NOK reported adjusted EPS of $0.08, which beat the Zacks Consensus Estimate of $0.07. Revenues of $5.59 billion, however, missed the Zacks Consensus Estimate of $5.61 billion.
Nokia Expands AI Network StrategyNokia said AI and cloud customers remain the strongest growth contributor. Hotard noted that AI and cloud sales more than doubled year over year, while order intake reached EUR 2.8 billion during the quarter.
Management emphasized that order patterns can be uneven, but the company continues to benefit from the demand across optical networks and IP networks. Hotard said roughly half of the AI and cloud orders received during the second quarter are expected to convert into revenues over the next 12 months.
Nokia also highlighted the launch of its AI-RAN platform, which management said provides operators with a software-based path to improving network performance and supports future 6G upgrades.
NOK Addresses Supply ConstraintsSupply availability was a key topic during the analyst discussion. A Raymond James analyst asked about risks involving memory, printed circuit boards and indium phosphide wafers.
Hotard said memory constraints remain the most significant supply issue and that Nokia is working to secure supply, simplify designs and coordinate with customers on longer lead times.
Regarding optical manufacturing, Hotard said Nokia’s capacity investments are designed to support future demand, including expanded indium phosphide manufacturing capabilities. The company is adding capacity in the United States through new facilities and planned expansion projects.
Nokia Details Outlook PrioritiesNokia maintained its full-year 2026 comparable operating profit outlook at EUR 2.1 billion to EUR 2.6 billion after a technical adjustment related to discontinued operations. Management said operational expectations remain unchanged.
CFO Marco Wiren said the company continues to track somewhat above the midpoint of its operating profit guidance range. He added that third-quarter sales are expected to increase sequentially by 3-7%, while operating profit is expected to remain broadly similar to the second quarter before improving in the fourth quarter.
Nokia also expects restructuring charges of approximately EUR 800 million in 2026 as it accelerates efficiency programs and organizational changes.
NOK Builds Optical CapacityOptical Networks remained a central investment area, with second-quarter sales increasing 20% on a constant currency basis. IP Networks revenues rose 16%, supported by AI and cloud demand.
Hotard said Nokia is maintaining investments in optical manufacturing capacity to support long-term demand. The company is advancing its San Jose facility and expanding testing and packaging capacity in Pennsylvania.
NOK also discussed its focus on concentrating resources in areas where it sees stronger differentiation while reducing exposure to lower-priority businesses. The company classified Fixed Wireless Access CPE and Enterprise Campus Edge as discontinued operations.
Nokia Faces Analyst ScrutinyAnalysts focused on the durability of AI infrastructure demand and whether recent order strength can continue. A Morgan Stanley analyst questioned the sustainability of higher-order levels.
Hotard said Nokia is focused on long-term order momentum rather than quarter-to-quarter fluctuations. He emphasized that customer demand remains strong, particularly in data center interconnect and AI-related networking applications.
A Danske Bank analyst also asked about optical supply capacity. Management reiterated that current investments are intended to align manufacturing capabilities with expected market expansion.
NOK Maintains Strategic FocusHotard said Nokia entered the second half of 2026 with momentum driven by AI and cloud demand, while continuing to reshape operations around growth opportunities. Management emphasized technology development, internal productivity improvements and disciplined capital allocation.
The company’s strategy remains focused on scaling businesses tied to AI infrastructure while improving operational efficiency. Nokia’s outlook reflects continued investment alongside cost actions.
Zacks Rank & Style SignalsNOK carries a Zacks Rank #3 (Hold), which indicates that the stock’s current earnings estimate revision trend does not place it among the strongest or weakest Zacks-ranked stocks. The Zacks Rank can change as analysts update earnings estimates following quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of C, Growth Score of C, Momentum Score of A and VGM Score of B. Zacks Style Scores rank stocks from A to F, with higher scores representing stronger characteristics for each style category.
Arrowstreet Capital Limited Partnership cut its stake in shares of Nokia Corporation (NYSE:NOK – Free Report) by 11.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 41,855,433 shares of the technology company’s stock after selling 5,465,625 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.73% of Nokia worth $336,518,000 as of its most recent SEC filing.
Other hedge funds have also recently made changes to their positions in the company. J2 Capital Management Inc lifted its holdings in shares of Nokia by 2.0% during the first quarter. J2 Capital Management Inc now owns 68,204 shares of the technology company’s stock worth $548,000 after purchasing an additional 1,319 shares during the period. Janney Montgomery Scott LLC increased its holdings in Nokia by 6.9% in the 4th quarter. Janney Montgomery Scott LLC now owns 22,426 shares of the technology company’s stock worth $145,000 after buying an additional 1,450 shares during the period. Kathmere Capital Management LLC raised its position in Nokia by 14.0% during the 1st quarter. Kathmere Capital Management LLC now owns 12,081 shares of the technology company’s stock worth $97,000 after buying an additional 1,483 shares during the last quarter. Xponance LLC raised its position in Nokia by 13.0% during the 4th quarter. Xponance LLC now owns 13,590 shares of the technology company’s stock worth $88,000 after buying an additional 1,567 shares during the last quarter. Finally, Assetmark Inc. lifted its stake in Nokia by 12.1% during the 1st quarter. Assetmark Inc. now owns 14,704 shares of the technology company’s stock valued at $118,000 after acquiring an additional 1,591 shares during the period. 5.28% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades A number of analysts have recently weighed in on NOK shares. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Nokia in a research note on Friday, May 15th. Arete Research raised shares of Nokia from a “neutral” rating to a “buy” rating in a report on Wednesday, April 29th. Nordea Equity Research raised Nokia from a “hold” rating to a “buy” rating in a research report on Friday, April 24th. Wall Street Zen cut Nokia from a “buy” rating to a “hold” rating in a report on Sunday, May 3rd. Finally, Argus raised Nokia from a “hold” rating to a “buy” rating and set a $15.00 target price on the stock in a report on Monday, April 27th. Thirteen equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $12.57.
Read Our Latest Stock Report on NOK
Trending Headlines about Nokia Here are the key news stories impacting Nokia this week:
Positive Sentiment: Nokia beat profit expectations, reporting $0.08 EPS versus $0.07 expected, with revenue up 8.4% year over year and network infrastructure strength helping offset a slight revenue miss. Reuters: Nokia Q2 profit beat on AI demand Positive Sentiment: Management said AI and cloud orders surged, with AI/cloud sales more than doubling and order intake reaching 2.8 billion euros, reinforcing the market’s view that Nokia is benefiting from data-center and AI infrastructure spending. Yahoo Finance: Nokia says AI, cloud boosted sales in second quarter Positive Sentiment: Nokia raised its full-year comparable operating profit guidance, signaling confidence that AI-driven demand will continue through the rest of 2026. Invezz: Nokia raises profit outlook as AI and cloud demand boost results Positive Sentiment: Several reports noted that AI infrastructure demand and record AI-related orders were the main drivers behind the stock’s jump, with investors focusing on Nokia’s growing role in network equipment for data centers. Investor’s Hub: Nokia reports stronger second-quarter earnings Nokia Stock Down 5.4% Shares of NYSE NOK opened at $9.72 on Friday. The firm has a market cap of $55.83 billion, a price-to-earnings ratio of 60.77, a price-to-earnings-growth ratio of 1.46 and a beta of 1.17. The company’s 50-day simple moving average is $13.46 and its 200-day simple moving average is $10.27. The company has a quick ratio of 1.32, a current ratio of 1.57 and a debt-to-equity ratio of 0.11. Nokia Corporation has a 52-week low of $4.00 and a 52-week high of $17.45.
Nokia (NYSE:NOK – Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The technology company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.01. The firm had revenue of $5.50 billion during the quarter, compared to the consensus estimate of $5.57 billion. Nokia had a net margin of 4.02% and a return on equity of 9.05%. The company’s revenue for the quarter was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.04 EPS. Equities analysts predict that Nokia Corporation will post 0.4 EPS for the current fiscal year.
Nokia Company Profile (Free Report)
Nokia Corporation, headquartered in Espoo, Finland, is a global telecommunications and technology company with roots dating back to 1865. Over its long history the company moved from forestry and cable operations into electronics and telecommunications, becoming widely known in the 1990s and 2000s for its mobile phones. In recent years Nokia refocused its business toward network infrastructure, software and technology licensing, and research and development, following the divestiture of its handset manufacturing business and the acquisition of Alcatel‑Lucent in 2016, which brought Bell Labs into its portfolio.
Today Nokia’s core activities center on designing, building and supporting communications networks and related software.
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Norsk Hydro is transforming into a vertically integrated, low-carbon aluminum leader with strong renewable power and recycling assets. Q2 2026 results highlight Hydro's integrated model: NOK 56.49B revenue (+6%), NOK 8.92B adjusted EBITDA (+15%), and NOK 4B free cash flow. Hydro benefits from European aluminum scarcity, regional premiums, and long-term power contracts while maintaining disciplined capacity deployment.
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 Oyj (NOK), a Finnish mobile network equipment maker, reported a stronger-than-expected second quarter as growing demand from artificial intelligence data
The New Nokia: A Bullish Upgrade Ignites This Big AI Bet Nokia NYSE: NOK reported 9% constant-currency net sales growth for the second quarter of 2026, with executives pointing to strong demand from AI and cloud customers and continued progress on the company’s strategy outlined at its Capital Markets Day.
President and CEO Justin Hotard said the quarter showed “continued progress” against Nokia’s priorities, with the company focused on what he called the “AI super cycle.” He said net sales from AI and cloud customers more than doubled year over year to EUR 446 million, while order intake in that segment reached EUR 2.8 billion.
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More Than Just Brains: The AI Revolution's Nervous SystemHotard cautioned that the order figure reflected several significant long-term orders as customers moved to secure supply in a constrained environment. He said roughly half of the AI and cloud order volume received in the quarter is expected to convert to revenue over the next 12 months, adding that order patterns in the market can be “lumpy” and that investors should not expect that level of intake every quarter.
Margins Improve as Network Infrastructure Leads Growth CFO Marco Wirén said comparable net sales grew 9% in the quarter, supported mainly by Network Infrastructure. Gross profit totaled EUR 2.2 billion, while gross margin rose 70 basis points to 46%. Comparable operating profit was EUR 434 million, with operating margin increasing 70 basis points to 9%.
NVIDIA’s Billion-Dollar Bet Puts Nokia Back in the Growth GameWirén said the quarter benefited from some software revenue recognition that came in during the second quarter instead of the third quarter. He also noted that higher stock-based compensation expense created a 150-basis-point year-over-year headwind to operating margin, driven by Nokia’s share price increase, an expansion of the program and earlier issuance this year.
Network Infrastructure net sales grew 12%, with Optical Networks up 20% and IP Networks up 16%. Wirén said Optical Networks benefited from continued AI and cloud demand as well as demand from telecom customers investing in transport infrastructure. IP Networks benefited as order momentum from the second half of 2025 began converting into revenue.
Fixed Networks sales declined 2%. Within that business, Optical Line Terminal sales rose 18%, while ONT sales fell 16% as Nokia continued to focus on higher-value parts of the portfolio. Network Infrastructure gross margin increased 240 basis points to 42.7%, helped by higher revenue scale, Infinera acquisition synergies and favorable mix in Fixed Networks, partly offset by growth investments in Optical and IP Networks.
Mobile Infrastructure Grows, But Q3 Margin Expected to Dip Mobile Infrastructure net sales increased 7% in the quarter. Wirén said core software grew 1%, radio networks increased 7% and technology standards rose 15%. Technology standards benefited from new agreements and catch-up revenue recognition, though Nokia continues to expect full-year technology standards sales and profitability to be similar to 2025 levels.
Mobile Infrastructure gross margin was 49.3%, which Wirén said was better than expected because of a higher contribution from software sales that had previously been anticipated in the third quarter. Because of that phasing, Nokia expects Mobile Infrastructure gross margin in the third quarter to be closer to 44% to 46%, before improving again in the fourth quarter in line with normal seasonality.
By customer segment, AI and cloud was Nokia’s fastest-growing area, with net sales up 105% year over year. Telecom sales increased 4%, while technology licensing grew 15%.
AI-RAN Platform and Optical Investments Highlight Strategy Hotard said Nokia launched what it described as the industry’s first commercial AI-RAN platform, which he said marks a shift from hardware-defined radio networks to software-defined platforms. He said the platform is expected to deliver more than 100% spectral efficiency gains by 2028, effectively doubling the capacity operators can obtain from existing spectrum.
The platform is open, programmable and O-RAN compliant, and Nokia expects pilot deployments to begin at the end of 2026, with commercial availability in 2027. In the Q&A session, Hotard said the company expects more significant volume in 2028.
Nokia also highlighted investments in optical manufacturing capacity. Hotard said a new indium phosphide fab in San Jose is processing test wafers and remains on track for volume production by the end of the year. Nokia also announced plans to scale its Pennsylvania facility, increasing advanced test and packaging capacity for optical systems by 10 times, and said it acquired a manufacturing site from NXP in Arizona to increase indium phosphide fab capacity.
Hotard said the Arizona fab is expected to come online no earlier than 2029, while the San Jose facility should ramp in 2027 after volume manufacturing starts later this year.
Discontinued Operations and Restructuring Updates Wirén said Nokia has classified its Fixed Wireless Access business and Enterprise Campus Edge business as discontinued operations. The move followed Nokia’s agreement to sell the Fixed Wireless Access business to Inseego and its view that the sale of Enterprise Campus Edge is now highly probable.
For the second quarter, Wirén said the reporting change reduced comparable net sales by EUR 66 million and increased comparable operating profit by EUR 13 million. It also caused minor cost allocation changes between Network Infrastructure and Mobile Infrastructure.
Nokia remains on track to complete its 2023-2026 restructuring program this year and achieve EUR 1.2 billion in gross cost savings. Wirén also said Nokia is accelerating the integration of its Chinese operations into its global operating model after taking full ownership at the end of 2025. The company now expects to recognize about EUR 350 million of planned one-time charges for that program by the end of 2026. Additional efficiency programs, mainly affecting Europe, are expected to result in EUR 200 million of restructuring charges in 2026.
Overall, Nokia expects restructuring charges of about EUR 800 million in 2026.
Cash Flow Weakens Seasonally; Outlook Maintained Free cash flow was negative EUR 732 million in the quarter. Wirén said the second quarter is typically Nokia’s weakest for cash generation because annual employee incentives are paid during the period. The company also saw working capital increase as the business continued to grow. Nokia ended the quarter with EUR 2.8 billion in net cash.
Because of higher restructuring costs and investments in working capital to prepare for growth, Nokia now expects to track toward the low end of its free cash flow conversion assumption of 55% to 75%.
Nokia said there was no operational change to its comparable operating profit guidance, aside from the technical adjustment related to discontinued operations. Wirén said the company continues to track “somewhat above the midpoint” of its operating profit range. For the third quarter, Nokia expects sequential net sales growth of 3% to 7% and operating profit broadly similar to the second quarter, followed by a meaningful improvement in the fourth quarter.
During the Q&A session, Hotard said Nokia remains broadly supply constrained in optical networks, particularly for leading-edge products. He said if more supply were available, Nokia would “probably generate more revenue.” He also said memory remains the most significant supply chain constraint, alongside broader component limitations affecting the technology ecosystem.
About Nokia (NYSE:NOK)Nokia Corporation, headquartered in Espoo, Finland, is a global telecommunications and technology company with roots dating back to 1865. Over its long history the company moved from forestry and cable operations into electronics and telecommunications, becoming widely known in the 1990s and 2000s for its mobile phones. In recent years Nokia refocused its business toward network infrastructure, software and technology licensing, and research and development, following the divestiture of its handset manufacturing business and the acquisition of Alcatel‑Lucent in 2016, which brought Bell Labs into its portfolio.
Today Nokia's core activities center on designing, building and supporting communications networks and related software.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Nokia's Q2 comparable EPS beat estimates, while revenues rose 8% but missed expectations.NOK saw AI & Cloud demand drive IP Networks and Optical Networks growth in Network Infrastructure.Nokia kept its 2026 operational outlook, with AI & Cloud demand supporting Network Infrastructure growth. Nokia Corporation (NOK - Free Report) reported mixed second-quarter 2026 results, with the bottom line beating the Zacks Consensus Estimate, but the top line missing the same. The company's top line increased year over year, primarily owing to robust growth in Optical Networks and IP Networks within the Network Infrastructure segment, supported by strong AI & Cloud demand.
NOK's Net IncomeNokia reported a net income of €5 million ($5.8 million) or €0.00 per share in the second quarter against a net income of €96 million or €0.02 per share in the year-ago quarter. Accelerated restructuring charges weighed on reported profits despite higher net sales.
Comparable profit was €414 million ($481.4 million) or €0.07 (8 cents) per share, up from €252 million or €0.04 in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of 7 cents.
NOK's RevenuesQuarterly net sales were €4.82 billion ($5.60 billion), up 8% from €4.44 billion in the year-ago quarter. Growth was primarily driven by strength in the Network Infrastructure segment, fueled by robust demand from AI & Cloud customers. However, revenues missed the Zacks Consensus Estimate of $5.62 billion.
Net sales from Network Infrastructure totaled €2.04 billion ($2.37 billion), increasing from €1.83 billion in the year-ago quarter. On a constant currency basis, IP Networks recorded 16% year-over-year growth, supported by strong AI & Cloud demand and robust order intake. Revenues from Optical Networks surged 20% year over year, driven by AI & Cloud and telecom provider demand, particularly in the Americas. Meanwhile, Fixed Networks declined 2% year over year, reflecting lower sales of consumer-premise fiber products as Nokia continued to prioritize higher-margin offerings, partly offset by stronger operator-premise fiber optical line terminal sales.
Mobile Infrastructure generated revenues of €2.68 billion ($3.12 billion), up 6% year over year on a reported basis and 7% on a constant currency basis. Growth was driven by strength in Radio Networks and Technology Standards, while Core Software recorded modest growth.
Net sales from Portfolio Businesses were €94 million ($109.3 million), up 6% year over year on both a reported and constant currency basis. Growth was primarily driven by Site Implementation and Outside Plant, which also supported a significant improvement in profitability during the quarter.
Technology Standards (reported under Mobile Infrastructure) contributed €407 million ($473.1 million) compared with €357 million in the year-ago quarter. Net sales increased 15% on a constant currency basis, driven by licensing agreements signed during the quarter, including a benefit from catch-up net sales.
Region-wise, net sales from the EMEA region increased to €2.06 billion ($2.39 billion) from €1.91 billion in the year-earlier quarter, reflecting broad-based growth across businesses.
Revenues in the APAC region increased to €982 million ($1.14 billion) from €913 million in the year-ago quarter, supported by growth across both Network Infrastructure and Mobile Infrastructure.
The Americas region generated net sales of €1.78 billion ($2.07 billion), up from €1.62 billion in the prior-year quarter, driven by strong demand in AI & Cloud, particularly for Optical Networks and IP Networks.
NOK's Other DetailsIn the June quarter, the comparable gross margin was 46%, up from 45.3% in the year-ago quarter. Comparable operating profit increased 18% year over year to €434 million ($504.5 million). Comparable operating margin expanded to 9% from 8.3% in the year-ago quarter.
NOK's Cash Flow & LiquidityIn the June quarter, Nokia used €620 million ($720.7 million) in net cash from operating activities. Free cash flow was negative €732 million ($850.9 million), primarily due to working capital outflows, restructuring-related cash charges and capital expenditures.
As of June 30, 2026, the company had €4.35 billion ($5.06 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €1.92 billion ($2.23 billion).
Outlook of NOKFor 2026, Nokia expects comparable operating profit in the range of €2.1-€2.6 billion, reflecting a technical revision from the previous range following the reclassification of two businesses as discontinued operations. Operationally, the company's outlook remains unchanged. Free cash flow conversion is projected at 55-75% of comparable operating profit, while capital expenditure is estimated to be in the range of €800-€900 million.
The company continues to expect Network Infrastructure net sales to grow 12-14% in 2026 on a constant currency and portfolio basis, including 18-20% growth for the combined IP Networks and Optical Networks businesses, supported by sustained demand from AI & Cloud customers.
NOK’s Zacks RankNOK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 8. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying growth of 46.91% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 24.01%. The company delivered an average earnings surprise of 14.08% in the last four reported quarters.
Corning Incorporated (GLW - Free Report) is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share, implying growth of 26.67% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 23.89%. The company delivered an average earnings surprise of 2.41% in the last four reported quarters.
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 reported a bigger than expected rise in its quarterly comparable operating profit on Thursday, as the Finnish telecom gear maker got a boost from artificial intelligence and cloud customers.
The company said it continues to capitalize on surging demand from AI and data-center customers, as supply constraints push clients to place longer-term orders.
Hydro’s adjusted EBITDA for the second quarter of 2026 was NOK 8,923 million, up from NOK 7,790 million in the same quarter last year. Higher aluminium prices and product premiums contributed positively, together with improved earnings in the recycling business. Lower energy production due to hydrology and adverse effects from a stronger NOK contributed negatively. Hydro delivered strong profitability in the quarter, with adjusted earnings per share increasing from NOK 1.7 in the second quarter 2025 to NOK 2.2 in the second quarter 2026. Free cash flow was NOK 4 billion, with strong adjusted EBITDA partially offset by investments and tax payments. The twelve month adjusted RoaCE ended at 10.9 percent.
Slovalco 75,000 tonnes restart announced on July 1 Realized all-in metal prices up 14 percent from first quarter All-time high casthouse production in Norway, upstream operational performance at high level Recycling results strengthening, adjusted EBITDA NOK 0.9 billion Power sourcing continuing, further 5 TWh sourced in second quarter On July 1, the planned restart of the Slovalco smelter was announced, following an agreement on long-term framework conditions with the Slovak government, including indirect carbon cost compensation. The smelter will restart 75,000 tonnes of capacity during the second half of 2026.
“This quarter reflects both Hydro's operational strength and the opportunities for European industry. Alongside strong financial results driven by solid operational performance and supportive markets, the agreement on a framework to restart Slovalco is an important step toward rebuilding European aluminium capacity. It also demonstrates that competitive energy and predictable framework conditions unlock investments and strengthen Europe's industrial resilience,” says Eivind Kallevik, President and CEO of Hydro.
The second quarter demonstrated continued strong operational performance across Hydro’s upstream businesses. At Alunorte, the refinery productivity increased year on year. In Aluminium Metal, the ramp up of previously curtailed capacity at the Norwegian smelters continued through the quarter, contributing to higher production volumes compared to the same period last year and reinforcing Hydro’s position as a reliable supplier to the European market.
Recycling continued to deliver strong results during the quarter, particularly in North America, where favorable market conditions and robust value added product premiums, supported margins and volumes. Adjusted EBITDA from the recycling operation was over NOK 900 million in the quarter. The continued performance highlights the strength of Hydro’s integrated and increasingly circular business model.
To source competitively priced renewable energy for the aluminium smelters remains a key priority for Hydro. In early July, a 10 year agreement was signed with Eviny, covering 0.5 TWh annually for the period 2031 to 2040. With the latest contract, Hydro has covered 85 percent of its total sourcing need in Norway in the 2030s. However, further development of renewable power is needed to support Hydro’s long-term growth and development plans.
“Hydro has secured a strong power position in Norway well into the next decade. At the same time, Europe needs significantly more renewable power generation if industries like aluminium are to remain competitive and continue investing for the future,” says Kallevik.
Hydro also continued to shape the market for low-carbon and recycled aluminium. During the quarter, Hydro entered a five year supply agreement with Nexans for approximately 85,000 tonnes of low-carbon aluminium wire rod. The agreement supports Europe's growing demand for electricity infrastructure, while strengthening Hydro's position in value added low-carbon aluminium. It also aligns with the recent expansion of wire rod capacity at Karmøy, supporting long-term growth opportunities driven by the energy transition
Results and market development per business area
Adjusted EBITDA for Bauxite & Alumina decreased compared to the second quarter of last year, to NOK 522 million from NOK 1,521 million, primarily due to lower alumina prices and a stronger BRL against the USD, partially offset by higher sales volumes and improved bauxite quality.
PAX traded in a narrow range between USD 303 and USD 330 per mt in the second quarter 2026, reflecting Chinese alumina price trends. Despite lower alumina production at certain refineries in Indonesia and Australia because of raw material supply challenges, the World ex-China alumina market was oversupplied in the quarter. China's alumina market was essentially balanced in the quarter with higher alumina imports offset by lower production because of some production disruptions. Chinese alumina prices were close to the marginal cash cost of production. Approximately half of China’s alumina production depends on bauxite imported from Guinea. The government of Guinea is considering restricting annual bauxite exports volume, but no formal announcement has been made.
Adjusted EBITDA for Energy decreased in the second quarter compared to the same period last year, to NOK 499 million from NOK 1,069 million. The decrease is mainly due to lower production and a loss on price area differences compared to a gain in the same period last year.
Average Nordic power prices in the second quarter of 2026 decreased compared to the previous quarter, but increased compared to the same quarter last year. The decrease from the previous quarter was mainly driven by lower seasonal demand and higher hydro power production following the melting season. Price area differences between the south and north of the Nordic market were above the previous quarter and below the same period last year.
The Nordic hydrological balance at the end of the quarter was 15 TWh below normal, compared to 21 TWh below normal at the end of last quarter and 10 TWh above normal at the same time last year. Norwegian hydropower reservoirs were around 61.9 percent of full capacity at the end of the quarter, which is below the normal for this time of year of 67.9 percent. The distribution was uneven, with lower than normal levels in the south of Norway and higher than normal levels in the north.
Adjusted EBITDA for Aluminium Metal increased in the second quarter of 2026 compared to the second quarter of 2025, to NOK 6,421 million from NOK 2,423 million, due to higher all-in metal prices and lower alumina cost, partly offset by lower sales volume, higher energy and carbon cost, and weaker USD to NOK. Global primary aluminium consumption was slightly higher compared to the second quarter of 2025, driven by a 2.2 percent increase in China. Primary consumption in the World ex-China is estimated to be down compared to the second quarter of 2025. The three month aluminium price decreased towards the end of the second quarter of 2026, starting the quarter at USD 3,532 per mt and ending at USD 3,086 per mt. The U.S. and Iran ceasefire, and subsequently partly opening of the Straight of Hormuz has led to an easing of supply concerns for aluminium globally. More metal has been shipped out of the Middle East and smelter production is recovering.
Adjusted EBITDA for Metal Markets decreased in the second quarter of 2026 compared to the same period last year, to NOK 32 million from NOK 276 million, due to lower results from sourcing and trading activities, partly offset by higher results from recyclers and positive inventory valuation and currency effects.
Adjusted EBITDA for Extrusions increased in the second quarter of 2026 compared to the same quarter last year, to NOK 1,463 million from NOK 1,260 million, driven by higher recycling margins in combination with lower fixed cost partly offset by reduced sales volume.
European extrusion demand is estimated to have increased slightly by 0.4 percent in the second quarter of 2026 compared to the same quarter last year, following a weaker first quarter. Demand in the building & construction and industrial segments showed modest growth in the quarter. Automotive demand remained positive in the first half of the year, supported by continued growth in battery electric vehicle production, while non-automotive transport demand remained subdued.
North American extrusion demand is estimated to have been flat in the second quarter of 2026 compared to the same quarter last year, following a weaker first quarter. Demand in the electrical segment remained solid during the quarter, while activity in the commercial transport segment improved towards the end of the period as price levels moderated. Automotive demand remained weak due to continued headwinds in electric vehicle production.
Other key financials
Compared to the first quarter of 2026, Hydro’s adjusted EBITDA increased to NOK 8,923 million from NOK 8,668 million, mainly due to higher all-in metal prices, improved Extrusions volumes and strong recycling margins in the second quarter of the year. This was partially offset by lower Energy results due to lower power production and losses on price area differences, higher fixed cost in Bauxite & Alumina and negative currency effects in Aluminium Metal.
Net income (loss) amounted to NOK 5,965 million in the second quarter of 2026. Net income (loss) included unrealized derivative gains, mainly on LME related contracts of NOK 3,088 million, rationalization charges and closure costs of NOK 233 million, impairment charges in equity accounted investments of NOK 104 million, and impairment charges on fixed assets of NOK 337 million. The tax effect on these adjustments reflected a standardized tax rate for taxable gains and tax deductible losses. Adjusted net income (loss) for the first quarter ended at NOK 4,601 million.
Hydro’s net debt increased from NOK 12.9 billion to NOK 16.3 billion during the second quarter of 2026. The net debt increase was mainly due to dividends paid, investments and other operating cash flow more than offsetting the EBITDA contribution.
Adjusted net debt increased from NOK 21.6 billion to NOK 22.8 billion, mainly driven by the increase in net debt, partly offset by lower hedging collateral.
Reported earnings before financial items and tax (EBIT), and net income include effects that are disclosed in the quarterly report. Adjustments to EBITDA, EBIT, and net income (loss) are defined and described as part of the alternative performance measures (APM) section in the quarterly report.
The information was submitted for publication from Hydro Investor Relations and the contact persons set out above. Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty.
Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Except where required by law, Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
NHY presentation Q2 2026 NHY Second Quarter Report 2026
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
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Earnings Surprise HistoryThe leading wireless manufacturer delivered a four-quarter earnings surprise of 2.91%, on average.
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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.
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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.
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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.
Key Takeaways Nokia will deploy AirScale baseband and radio tech to expand Taiwan Mobile's AI-powered 5G network.NOK will add AI tools to automate operations, predict hardware issues and improve network reliability.Nokia's upgraded network will support slicing, RedCap and AI-driven traffic with better energy efficiency. Nokia Corporation (NOK - Free Report) has strengthened its long-standing relationship with Taiwan Mobile through a new 5G agreement to accelerate the rollout of artificial intelligence (AI)-powered mobile networks across Taiwan. The partnership reflects Nokia's commitment to advancing AI-enabled 5G infrastructure across the globe.
Per the agreement, Nokia will deploy its latest AirScale portfolio, including next-generation baseband platforms and advanced radio technologies. The deployment is expected to increase network capacity, improve uplink performance and prepare the operator's network for rising AI-driven data traffic and advanced 5G services.
The company will also introduce AI software to automate network operations, predict potential hardware issues and improve overall reliability through its MantaRay Self-Organizing Networks and Predictive Hardware Analytics solutions. In addition, AI-based energy management tools will optimize power usage based on network demand, helping lower operating costs.
The upgraded infrastructure will support advanced 5G features such as network slicing and Reduced Capability, enabling new services for businesses and consumers. By combining advanced network equipment with AI software, Nokia is likely to benefit from increasing demand for faster, smarter and more energy-efficient networks.
How Are Competitors Performing?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson continues to strengthen its 5G portfolio with new AI-powered network solutions for telecom operators. The company is focusing on improving network performance, automation and energy efficiency through AI technologies. Ericsson's latest solutions are designed to support AI-native 5G services and help operators meet growing data traffic demands.
Cisco continues to expand its private 5G offerings to help enterprises deploy secure and reliable wireless networks. The company's cloud-managed Private 5G platform simplifies network deployment, management and integration with existing Wi-Fi and IoT infrastructure. Cisco is focusing on open, cloud-native 5G solutions to help businesses improve connectivity and accelerate digital transformation.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 140.5% over the past year compared with the industry’s 37.4% growth.
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From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.7, below the industry tally of 4.83.
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Earnings estimates for 2026 have remained static at 40 cents over the past 60 days, while those for 2027 have increased 4.2% to 50 cents.
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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 has rallied 140% on strong AI and cloud order momentum, now trading at 29x FY2026 earnings. AI and cloud revenue grew 49% in Q1, with €1B in new firm orders and upgraded 2026 growth guidance for Network Infrastructure. Despite robust demand, supply constraints and heavy R&D investment limit immediate margin expansion; Q2 is a key test for IP Networks growth.
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.
Key Takeaways EQNR awarded contracts worth NOK 6 billion for four subsea developments on the Norwegian Continental Shelf.Standardized equipment and early procurement aim to cut costs and speed up project execution.The projects are expected to add 130-220 MMBoe and support Equinor's 75-project subsea plan by 2035. Equinor ASA (EQNR - Free Report) , on behalf of partners, has awarded contracts worth approximately NOK 6 billion for four subsea developments on the Norwegian Continental Shelf (NCS), reinforcing its strategy to sustain long-term production while lowering development costs. The contracts form the first wave of a broader subsea development program, which targets around 75 subsea projects by 2035.
By coordinating multiple projects under a single procurement strategy, Equinor aims to standardize equipment, simplify execution and significantly shorten the timeline from discovery to production. Together, the four projects are expected to contribute 130-220 million barrels of oil equivalent (MMBoe) to future production from the NCS, strengthening EQNR's reserve base and long-term production outlook.
EQNR’s Strategic Partnerships Accelerate DevelopmentThe awarded contracts cover key suppliers across the subsea value chain. TechnipFMC plc (FTI - Free Report) will supply subsea production systems for the Brime, Omega Sor and Tyrihans Nord projects. FTI will also install rigid pipelines on the Troll field. OneSubsea will supply the subsea production system for the TWIN project and deliver the umbilicals across all four developments.
Ocean Installer will execute marine installation and connection work, while NOV Inc. will provide flexible pipelines for Brime, Omega Sor and Tyrihans Nord. Procuring standardized equipment before final project approvals enables Equinor to reduce long-lead procurement risks and accelerate project execution once regulatory approvals are secured.
Wave 1 Projects Expand Resource Potential of EQNRWave 1 of Equinor's subsea development program includes the TWIN, Brime, Omega Sor, Tyrihans Nord and Sissel projects, all aimed at increasing production while leveraging existing infrastructure to reduce costs. TWIN is the only project sanctioned so far, with an investment of more than NOK 4 billion. It is expected to recover 11 billion standard cubic meters of gas through two new wells connected to the Troll A platform, with the gas processed at Kollsnes, making it the third phase of the Troll West gas-cap development.
Smaller Discoveries Support Long-Term Growth of EQNRThe remaining projects are in the early stages of development but collectively offer significant resource potential. Brime will feature four wells tied back to existing infrastructure at Visund Sor, with recoverable resources estimated at 16-34 MMBoe. The project may also support a future phased development of the nearby Nokken discovery. Omega Sor, discovered in spring 2026 near the Snorre field, is estimated to contain 25-89 million barrels of oil. It will be tied back to Snorre A and the produced oil will be processed there and exported via Gullfaks.
Tyrihans Nord, originally discovered in 1984, is planned as a two-well subsea development connected to the existing production pipeline between the Tyrihans subsea field and the Kristin platform. Tyrihans Nord is estimated to contain 20-30 MMBoe, primarily gas. The Sissel discovery has been simplified by utilizing the existing Utgard template instead of constructing a new Cap-X facility, reducing development complexity and costs. Sissel is estimated to hold 6-28 MMBoe. Together, these projects illustrate EQNR's strategy of accelerating smaller tie-back developments, maximizing existing infrastructure and enhancing long-term production from the NCS.
EQNR’s Disciplined Capital Allocation Enhances Investor AppealThe initiative highlights Equinor's disciplined organic growth by using existing infrastructure and standardized solutions to lower development costs, accelerate project execution and improve capital efficiency. These investments strengthen EQNR’s business model, resulting in an increased long-term production outlook and enhanced investor appeal.
Zacks Rank & Key PicksEquinor and TechnipFMC currently carry a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Aker BP ASA (AKRBY - Free Report) and Cenovus Energy Inc. (CVE - Free Report) . AKRBY and CVE currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aker BP has a strong foothold on the NCS through its operated hubs at Alvheim, Edvard Grieg/Ivar Aasen, Valhall, Skarv and Ula, alongside its stake in Johan Sverdrup. AKRBY expanded its future growth pipeline by securing a 19% interest in the Grosbeak, Swisher, Toppand and Rover exploration licenses.
Cenovus leverages its integrated upstream and downstream operations across Canada and the United States to generate cash flow. CVE is investing in Christina Lake North, Sunrise, West White Rose and Foster Creek optimization projects to increase production and enhance cash flow.
Key Takeaways Nokia is seeing AI infrastructure demand support optical networking and Network Infrastructure growth.VIAV is expanding AI network testing with new validation platforms for next-generation data centers.Nokia and VIAV are investing in AI networking as optical speed upgrades create new opportunities. Nokia Corporation (NOK - Free Report) and Viavi Solutions Inc. (VIAV - Free Report) both operate in communications networking infrastructure and are benefiting from growing investment in AI-driven data center and optical networking. The communication network industry is entering a different phase, as the growing proliferation of AI data centers and AI workloads is driving demand for next-generation networking architecture.
The industry's transition toward 400G and 800G networking technologies is driving demand for manufacturers and vendors of optical transport equipment and connectivity solutions. Growing network complexity is also increasing the need for advanced testing to support performance and reliability.
Both Nokia and Viavi operate in different parts of the broader AI networking system. Let us analyze in depth the competitive strengths and weaknesses of the companies to understand who is in a better position to maximize gains from the emerging market trends.
The Case for NokiaNokia is increasingly emerging as an AI infrastructure beneficiary rather than a traditional telecom-equipment vendor. The growth is primarily supported by growing hyperscalers’ investment in AI infrastructure. AI-driven spending is primarily driving growth in Nokia’s Network Infrastructure segment. The segment’s Optical Networks business revenues grew 20% year over year on a constant-currency basis, driven by rapid AI data center buildouts. In this vertical, Nokia reported strong order intake backed by solid demand for optical pluggables, line systems and data-center interconnect solutions.
Recently, Orange Belgium has selected Nokia to modernize its optical transport infrastructure, underscoring the growing demand for AI-ready networking solutions. Under the multi-year agreement, Nokia will deploy its 1830 Photonic Service Switch (PSS) platform and AI-powered WaveSuite automation software. The solution will unify Orange Belgium's fixed and mobile transport networks into a single converged optical backbone. Such a deal underscores Nokia’s growing credibility in this market. Backed by such solid momentum, the company also increased its forecast for Network Infrastructure market growth to 14% CAGR from the previously expected 9%.
However, it is to be noted that despite growth in its AI and cloud business, Nokia still derives the majority of its revenues from the legacy telecom business. Only 8% of the total net sales came from AI and cloud in the first quarter. In this market, Nokia faces competition from major players such as Arista Networks Inc. (ANET - Free Report) and Cisco. Arista’s Ethernet-based AI fabrics are gaining traction as customers increasingly move away from proprietary networking architectures. It has deployed more than 100 customer networks running 800G Ethernet. Arista is also set to benefit from 1.6T networking adoption from the beginning of 2027.
The company also faces stiff competition from Ericsson (ERIC - Free Report) across mobile network infrastructure, radio access networks (RAN), core networks and 5G deployments. Ericsson boasts a comprehensive portfolio of 60,000 granted patents. A highly-skilled team makes this possible while the close collaboration with customers ensures quick uptake, driving sustainable growth. Around 50% of the world’s mobile 5G traffic runs on Ericsson’s radio networks.
The Case for ViaviAI data center buildout is Viavi’s strongest growth engine. In every stage of AI hardware development, from designing chips to manufacturing optical interconnects and deploying data centers, Viavi offers test and measurement solutions. Backed by its comprehensive product offering, the company is seeing robust demand from hyperscalers, semiconductor companies, optical module manufacturers and networking equipment vendors.
The industry is rapidly moving from 400G to 800G Ethernet and now toward 1.6-terabit. Each speed upgrade requires validation and protocol testing solutions. This transition to higher-speed optical networks presents a solid growth opportunity for VIAV.
Recent investments in PCIe 7.0 analysis capabilities and the launch of the CyberFlood CF1000 platform expand Viavi’s ability to validate AI inference workloads, encrypted traffic and next-generation data center infrastructure. These developments strengthen exposure to long-term AI-related network testing demand, and support continued growth in lab, production and field-testing solutions. The company has also introduced the industry’s first Ultra Ethernet Transport validation platform, designed to help hyperscalers, cloud providers, neocloud operators, and network equipment manufacturers accelerate the deployment of next-generation AI networks. Such innovative product launches bode well for sustainable growth.
Viavi's aerospace and defense business continues to deliver strong growth, driven by positioning, navigation and timing (PNT) products acquired through Inertial Labs. This shows the resilience in Viavi’s business model, which does not rely on a single market to sustain growth.
During the third quarter of 2026, the company’s non-GAAP gross profit improved to $252.9 million from $170.8 million a year ago, with respective margins of 62.2% and 60%. Non-GAAP operating income was $85.5 million compared with $47.7 million in the year-ago quarter. Better product mix, higher AI-related revenues and improving efficiency are boosting margins.
How Do Zacks Estimates Compare for VIAV & NOK?The Zacks Consensus Estimate for VIAV’s 2026 sales implies year-over-year growth of 39.09%, while that for EPS suggests growth of 97.87%. The EPS estimate for 2026 has remained unchanged over the past 60 days.
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The Zacks Consensus Estimate for NOK’s 2026 sales implies year-over-year growth of 6.18%, while that for EPS suggests an increase of 21.21%. The EPS estimate for 2026 has remained unchanged over the past 60 days.
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Price Performance & Valuation of VIAV & NOKOver the past year, Viavi has gained 290.8%, while NOK has gained 130.1% over the same period.
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Nokia looks more attractive than Viavi from a valuation standpoint. Going by the price/earnings ratio, NOK’s shares currently trade at 26.58 forward earnings, lower than 32.8 for VIAV.
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VIAV or NOK: Which is a Better Pick?Viavi carries a Zacks Rank #2 (Buy), while Nokia carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viavi and Nokia are both rapidly expanding their portfolio offerings to capitalize on the emerging AI infrastructure market. However, Nokia’s venture into the AI networking space is plagued by strong competition from other major players such as Arista, HPE and Cisco. Gaining a competitive edge against these AI networking giants will be challenging. Consequently, Viavi boasts a strong position in the testing and validation solutions that cater to AI infrastructure buildout. Transition to high-speed optical networks is also a growth catalyst for VIAV. Moreover, Viavi’s presence in diverse markets such as aerospace, defense and semiconductor improves resilience in its business model. Owing to these factors and a better Zacks Rank, Viavi is a better investment option at present.
The pullback looks more tied to the softer premarket tone than to a change in the company’s longer-term narrative.
Nokia shares are experiencing downward pressure. What’s pulling NOK shares down? What Is Nokia’s Latest Catalyst with Orange Belgium?Orange Belgium 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, supporting traffic capacities from 1G to 400G and beyond, and it marks the first deployment of Nokia’s 1830 PSS optical transport platform within an Orange affiliate.
Nokia is also expanding how it delivers that automation stack, including running its Autonomous Networks Fabric on AWS with "Level 4" autonomy targeted for availability later this year.
Nokia Stock: Key Technical Levels To WatchFrom a trend perspective, the stock is still in a strong longer-term uptrend (up 130.10% over the past 12 months) and remains well above its 200-day SMA of $8.67, but the near-term chart is in a digestion phase. At $11.56, shares are trading 14.8% below the 20-day SMA ($13.57) and 16.4% below the 50-day SMA ($13.83), which keeps overhead pressure in place until those levels are reclaimed.
Momentum is best framed by MACD right now: MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing unless buyers can reassert control. In plain terms, when MACD sits under its signal line, it often means rallies are having a harder time sustaining.
The bigger-picture moving-average structure is still supportive, with the 50-day SMA above the 200-day SMA (a golden cross that occurred in October 2025), even though the 20-day SMA is now below the 50-day SMA (a bearish near-term crossover). That mix often shows up when a longer-term uptrend is intact, but the stock is working through a pullback.
Key Support: $10.00 — a nearby round-number level that can act as a decision point if the pullback extends 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 equipment and software), 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 business mix is why the Orange Belgium optical transport win matters: it sits directly in the network infrastructure wheelhouse, where carriers are upgrading transport to handle AI-driven bandwidth growth, cloud traffic, and more demanding service-level expectations. Deals that standardize a carrier on a single supplier can also create follow-on opportunities in software automation and lifecycle upgrades.
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 74.3x (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 BreakdownBelow 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 has been a longer-term winner even as it consolidates. The main trade-off is valuation/ "value" not screening as cheap, so technicians may prefer to see the stock stabilize above key support and start reclaiming shorter-term moving averages.
Nokia Stock Price Action in Premarket TradingNOK Stock Price Activity: Nokia shares were down 2.19% at $11.59 during premarket trading on Wednesday, according to Benzinga Pro data.
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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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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.
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From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.78, below the industry tally of 5.07.
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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.
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Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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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.
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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 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.
Nvidia has emerged as one of the great success stories in tech in the 2020s. So successful is the company that it has boosted other companies by forming partnerships and buying their stock directly. Such is the case with Intel and Nebius, whose stocks have gained around 480% and 410%, respectively, over the last year.
Fortunately, these are not the only stocks in Nvidia's portfolio. Thanks to key partnerships, CoreWeave (CRWV 2.27%) and Nokia (NOK 7.26%) have begun moving higher. Here's why these stocks are on track to be the next big winners in Nvidia's portfolio.
Image source: Getty Images.
CoreWeave CoreWeave competes in the neocloud space. Its backlog is booming, as it has attracted more than $99 billion in contracts. Much of that gain has likely come from its Nvidia partnership, which has given it a key competitive advantage. Consequently, it is the first cloud provider to incorporate Nvidia's Vera Rubin NVL72 platform within its ecosystem.
Now, CoreWeave's growth is a testament to the popularity of its cloud and the struggles to keep up with demand. In the first quarter of 2026, revenue of almost $2.1 billion rose 112% from year-ago levels. Although it is robust growth, it is a slowdown from the 167% increase in 2025.
Amid that growth, it lost $740 million in Q1, up from $315 million in the same quarter last year. Still, that is not the stock's main challenge.
Instead, investors are increasingly concerned by the amount of cash it needs to meet this demand. In Q1, its debt levels had almost reached $25 billion, a considerable burden considering CoreWeave's $4.8 billion in book value.
Admittedly, that debt could weigh more heavily on CoreWeave stock if AI growth does not match expectations, and even now, it may be one reason CoreWeave stock is down by more than 40% over the last year. However, since its backlog went from $67 billion to $99 billion in one quarter, it continues to benefit from robust AI growth.
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Still, the stock is up more than 40% since the beginning of the year, and it trades at a price-to-sales (P/S) ratio of 8. While that is above the 3.6 P/S ratio average for the S&P 500, it is below many AI growth stocks that have sales multiples well into the double digits.
Hence, for investors who can stomach the risks, owning CoreWeave stock offers massive AI growth at a low valuation, meaning the stock could greatly benefit Nvidia and investors who follow in its footsteps.
Nokia Seeing Nokia in Nvidia's portfolio might surprise some investors. The one-time cellphone leader fell out of favor when the invention of the smartphone wiped out its main source of revenue.
Amid that shift, the company later pivoted into telecom equipment after buying Alcatel. Now, partnering with Nvidia has given it a more explicit competitive advantage.
Nvidia will embed its ARC-Pro processors into Nokia's 5G equipment. This will enable AI inferencing from cell towers and help to support Nvidia's CUDA software platform. Also, Nokia has become a partner in data center upgrades, as its equipment will combine switching and optical technologies with Nvidia's AI-driven platforms.
Customers could see the results of this soon. Both T-Mobile and French telco Orange are working with Nokia and Nvidia to add this functionality. Also, the two companies will work together to make this AI functionality a part of the upcoming 6G cellular technology in the coming years.
Admittedly, this partnership has yet to meaningfully boost Nokia's financials. In Q1, its 4.5 billion euros ($5.1 billion) in revenue rose by only 2% over the previous year. Also, the 2025 revenue growth of 3% was only marginally better.
Its Q1 profit of 295 million euros ($335 million) rose 93% year over year, mostly because of 126 million euros in financial income. That stands in contrast to the 49% decline in profit in 2025, driven by lower operating margins.
Nonetheless, Nokia's stock is up approximately 170% over the last year, likely driven by speculation about its future.
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Additionally, investors should probably approach its valuation with some perspective. The P/E ratio of around 86 is probably a product of a pullback in profits and the rising stock price.
Fortunately, the forward P/E of 34 implies that investors may still have time to buy Nokia. As Nokia supports Nvidia's AI functionality within the telecom space, the tech stock could be in for its best performance in decades.
NOK weekly chart shows high near resistance confluence A potential downside target estimated from the topping pattern suggests a decline to around $8.94. That would put NOK near the 200-day moving average, currently near $8.43, and the prior trend high of $8.19 from 2025. Before reaching the objective, however, the uptrend line and 100-day moving average near $10.81 represent an important potential low or intermediate support zone that has a strong likelihood of being tested first.
Resistance Levels to Watch If a short-term rebound develops, prior support could instead act as resistance, with initial upside tests targeting the neckline of the head and shoulders formation near $13.22 or the 50-day moving average near $13.55. Friday’s high of $13.44 marks the first area of short-term resistance, while a rally above Thursday’s high of $14.16 would increase the risk that the bearish topping pattern fails. Until buyers reclaim those key resistance levels, Friday’s dual breakdown below both the head and shoulders neckline and the 50-day moving average keeps the focus on lower support targets and reinforces the dominant bearish outlook.
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 (NOK) gained 3% after the company was set to join a consortium led by the Finnish Border Guard to develop next-generation counter-drone capabilities for p
Press Release
Nokia to provide intelligent connectivity for Finnish Border Guard counter-drone initiative nationwide
Nokia Defense joins Finnish-Nordic consortium to strengthen counter-UAS border securitySecure, scalable connectivity enables real-time threat detection and interoperable mission-critical operations across land and sea 25 June 2026
Espoo, Finland – Nokia today announced its participation in a new industrial consortium led by the Finnish Border Guard to develop the next-generation counter-drone capabilities for patrol vehicles and boats. Nokia’s Defense unit will help support border security duties, surveillance, protection of territorial integrity and the safeguarding of critical infrastructure by providing an intelligent network solution that enables secure, high-performance connectivity, real-time data exchange and interoperability across systems.
The initiative supports the Finnish Border Guard’s goal of building a sovereign, integrated counter-unmanned aerial systems (UAS) and threat detection capability to be deployed nationwide. By connecting platforms, sensors and command-and-control systems, the solution is designed to deliver enhanced real-time situational awareness and enable faster, more coordinated responses to evolving multi-domain threats.
Nokia’s role reflects the growing importance of trusted and intelligent connectivity as a foundation for modern defense and border security. As drones become more accessible and widely used, threat detection, sensing and connectivity must work seamlessly to protect personnel, infrastructure and mission effectiveness. Through the consortium, Nokia Defense will work with key partners to support a scalable, future-ready system aligned with national and allied requirements.
“Reliable, secure connectivity is becoming essential to how defense organizations detect, understand and respond to fast-moving threats. By contributing Nokia’s intelligent connectivity and sensing technology to this consortium, we are helping build an operational and interoperable solution that gives border authorities the real-time awareness and resilience they need in complex land and maritime environments,” said Mikko Hautala, Chief Geopolitical & Government Relations Officer, and Chairman, Nokia Defense.
The Finnish Border Guard initiative includes the procurement and deployment of evaluation platforms, connectivity and sensing capabilities, and system integration. The solutions will be evaluated during 2027 and early 2028.
Multimedia, technical information and related news
Web Page: Defense communications
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.
Press Release
Nokia, Databricks demonstrate unified data platform for autonomous networks
Proof of concept validates cloud-agnostic approach for network operators to scale AI-driven operations, deploy real-time analytics without rewriting code. 24 June 2026
Espoo, Finland – Nokia and Databricks today announced the successful completion of a joint proof of concept (PoC) demonstrating a unified, substrate-agnostic data platform designed to support AI-driven autonomous networks. The collaboration shows how telecommunication providers can simplify fragmented data environments and deploy real-time analytics at scale, enabling faster decision-making, improved network performance, and more efficient operations.
The PoC addresses a long-standing industry challenge: Telecom networks typically rely on hundreds of siloed operational and business support systems, each with its own data architecture, making it difficult to apply AI consistently across domains. To truly harness AI and multi-agent systems, operators need a common data platform that can run seamlessly across different cloud environments or on-premise infrastructure, without the need to rewrite code.
The POC confirmed Databricks and Nokia’s ability to develop a joint architecture that efficiently handles the massive scale and real-time ingestion speeds required to feed network data to AI agents for automated, cross-domain decision-making.
“Teaming up with Databricks represents a big step as we work toward building the types of data foundations required for next-generation autonomous networks. By enabling a common, flexible data platform across cloud environments, we can help operators accelerate the adoption of AI and create more efficient, resilient and sustainable networks,” said Oguz Sunay, CTO AI and Autonomous Networks, Nokia.
“Telecom operators are managing increasingly complex networks and need a more consistent way to harness their data. Our collaboration with Nokia demonstrates how a unified data platform can help simplify operations and unlock the value of AI across network domains,” said Nevash Pillay, Global Head of Telecommunications Industry, Databricks.
About the POC
Engineering teams from Nokia and Databricks focused on a real-time performance management use case, simulating analytics ingestion with an intent to scale quickly to match tier-1 operator scale in the cloud. Their work delivered several key technical breakthroughs designed to simplify how telecom operators build and run data-driven services across different environments:
Cross-platform data pipelines, without coding complexity: Data pipelines were created once and deployed across different platforms without modification. In trials, the same data workflows ran seamlessly on both Databricks and an open-source stack based on Apache Flink, Kafka, and Iceberg, supporting real-time streaming, batch processing, and query-time data products.Vendor-neutral data logic design: To avoid lock-in to any single platform, Nokia engineers developed transformation logic using an abstract, platform-independent expression in Python. By separating the core logic from platform-specific connectors, the same data workflows could be reused across multiple environments.Automated deployment across environments: The teams validated a custom compiler that automatically adapted workflows at deployment. Based on the target environment, it translated the abstract logic into native formats — such as Delta Live Tables for Databricks or Flink SQL for open-source systems — and added the platform-specific connectors, eliminating manual rework and accelerating time to deployment.AI-powered creation of new data products: The project also showcased how AI can streamline operations. Using simple natural language prompts, an intelligent data fabric agent can generate new data products, request human validation, and deploy the pipeline automatically, resulting in faster innovation with less manual effort. In the agentic world, the same mechanism can be leveraged by other agents to create dynamic data products on demand by communicating (agent to agent) with the data fabric agent.Data fabric built for the agentic world: Query-time data products computing derived metrics, applying filters, aggregating, enriching, or joining data on read instead of duplicating it.Zero-copy sharing, making cross-domain data consumption lightweight and real-time.A mechanism to selectively feed upper temporal layers in the cloud, where agents run retrospective tasks like root-cause analysis on past events. Moving ahead
Nokia and Databricks plan to continue their collaboration around enhancing autonomous network capabilities, helping operators transition to a future where AI applications increasingly access, correlate, and act on large-scale network data in real time.
Multimedia, technical information and related news
Web Page: Autonomous Networks | Nokia
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 Databricks
Databricks is the Data and AI company. More than 20,000 organizations worldwide — including adidas, AT&T, Bayer, Block, Mastercard, Rivian, Unilever, and 70% of the Fortune 500 — rely on Databricks to build and scale data and AI apps, analytics and agents. Headquartered in San Francisco with 30+ offices around the globe, Databricks offers a unified platform that includes Lakebase, Genie, Agent Bricks, Lakeflow, Lakehouse, and Unity Catalog. To learn more, follow Databricks on LinkedIn, X, YouTube, and Instagram.
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 (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.
Nokia stock is trading at elevated levels. What’s next for NOK stock? What Is Driving Nokia’s Stock Price Today?The latest push in sentiment has been tied to a higher price forecast and AI-related product catalysts, including Nokia's plan to add an "agentic AI" framework to its Network Services Platform with commercial availability targeted by the end of 2026.
The company has also highlighted a multi-year Indonesia partnership expansion with Indosat Ooredoo Hutchison aimed at pushing mid-band 5G coverage to about 80% of the network over the next 3.5 years, alongside AI Grid and AI-RAN work with NVIDIA with field trials slated for the end of 2026.
Nokia has also been leaning into security as part of the AI pitch, including Deepfield Genome Shield for proactive, network-wide DDoS detection and mitigation, which has helped keep the stock among top performers on days when the AI framework headlines hit.
Nokia Stock: Key Technical Levels To WatchFrom a trend perspective, Nokia is still in a longer-term uptrend: it's trading about 10.5% above its 50-day SMA ($12.99), about 39% above its 100-day SMA ($10.32), and about 77% above its 200-day SMA ($8.11). The golden cross that printed in October 2025 (50-day SMA over the 200-day SMA) remains a key "trend stays up" backdrop, especially after the prior death cross in August 2025.
Near-term, the stock is trading about 4.2% below its 20-day SMA ($14.98), which fits the idea of a pause after the June swing high and the 52-week high in June ($17.45). Momentum is neutral with RSI at 48.45; RSI helps gauge whether the move is getting stretched, and this reading suggests neither buyers nor sellers have clear control right now.
Key Resistance: $15.00 — a round-number area that lines up closely with the 20-day moving-average zone where rebounds can stall Key Support: $13.00 — a nearby pivot area that also sits close to the 50-day SMA/EMA region ($12.99/$13.10), where dip-buyers often re-engage 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 network equipment/software), network infrastructure (IP routing, optical, and fixed-network gear), and a portfolio segment of businesses it views as less central longer term.
Nokia Benzinga Edge Rankings ExplainedBelow 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 helps explain why dips have tended to attract buyers. The trade-off is valuation: with Value in the neutral/weak zone, the stock may need fresh execution (or another catalyst) to cleanly reclaim resistance and extend the trend.
Nokia Stock Price Activity in PremarketNOK Stock Price Activity: Nokia shares were trading up 2.65% at $14.35 during premarket trading on Wednesday, according to Benzinga Pro data.
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Press Release
Nokia Defense and KNDS close critical connectivity gap for soldiers and unmanned systems
Joint effort with KNDS, pan-European leader in land defense, enables high bandwidth 5G connectivity for forces and autonomous systems beyond vehiclesPowered by 5G deployable networks from Nokia Defense’s Banshee portfolio 18 June 2026 - Espoo, Finland and Villepinte, France – At the 2026 Eurosatory show, Nokia Defense and KNDS, a leading pan-European land defense company, have announced a collaboration to deliver advanced connectivity for soldiers and unmanned vehicles, addressing critical communication gaps on the modern battlefield. By integrating the Nokia Banshee Deployable Solution into the KNDS VBCI (Armored Infantry Fighting Vehicle), the companies enable seamless, real-time connectivity as forces transition from armored vehicles into complex mission environments, supporting more responsive and coordinated operations.
Modern defense requires continuous communication across many manned and unmanned systems. However, maintaining reliable connectivity beyond the vehicle remains an operational challenge. This collaboration extends secure, high-speed 5G connectivity from combat vehicles directly to troops and robotic systems in the field, enabling continuous data exchange in contested scenarios.
Built for demanding conditions, Nokia Defense’s deployable 5G-based technology delivers high capacity, low latency, secure and resilient connectivity to improve situational awareness and mission coordination. Its flexible design enables rapid deployment in areas where communications are limited or unavailable.
“Defense operations depend on reliable, real-time data wherever militaries operate. This collaboration with KNDS shows how high-performance connectivity can move with the mission. By extending Nokia 5G networks beyond the vehicle, we are giving soldiers and autonomous systems the ability to operate more effectively in complex environments,” said Ari Kynäslahti, Head of Nokia Defense.
“At Eurosatory, we are showcasing how connectivity is becoming a core enabler of future land operations. Together with Nokia Defense, a partner selected for its technological leadership in tactical communications, we are demonstrating how next-generation tactical communications can be fully integrated into our combat-proven VBCI and deployed where needed, improving operational outcomes on today’s and future battlefield,” said Nicolas Groult, CEO of KNDS France.
Multimedia, technical information and related news
Web Page: Defense communications | Nokia.com
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 KNDS
KNDS is a leading pan-European land defense company, uniting nearly 11,000 employees and generating €4.4 billion in revenue in 2025. With a strong order backlog of €33.1 billion as of December 31, 2025, the group delivers innovative complete mission solutions built on state-of-the art technologies. Leveraging deep industrial expertise and strong partnerships, KNDS develops open, interoperable solutions combining manned and unmanned systems, designed to meet tomorrow’s operational challenges. As a prime contractor, it provides full system-of-systems capabilities, from platforms to ammunition and services, managing the entire value chain and encompassing complete product life cycles.
Born from the alliance of Nexter and Krauss-Maffei Wegmann, KNDS embodies the path toward a collective and efficient future for the sovereignty of Europe’s defense by supporting the standardization and interoperability between European and NATO forces.
Trusted by 40+ armies worldwide, including 24 European armed forces, KNDS benefits from decades of combat-proven experience. KNDS embodies a united, efficient model to enhance stability and long-term security in Europe and beyond.
Nokia advances autonomous networks portfolio with upgraded agentic AI capabilities #DTW26
As AI becomes the dominant workload of the network economy, Nokia’s new software and agentic frameworks help telecom providers improve network performance, reliability, and operational efficiency at scale.Holistic approach covers Autonomous Networks Agent Library, Autonomous Networks Suite, MantaRay SMO, and new AI-driven frameworks for IP, fixed, and optical networks. 23 June 2026
Espoo, Finland – Nokia today announced multiple upgrades to its autonomous networks portfolio, introducing a comprehensive set of agentic AI capabilities designed to help telecommunication providers simplify operations, improve network performance, and respond more effectively to increasingly complex and dynamic traffic demands.
At DTW in Copenhagen, Nokia rolled out a new Autonomous Networks Agent Library, released the latest version of its Autonomous Networks Suite, enhanced RAN automation, and showcased new AI-driven frameworks for IP, fixed, and optical networks. Together, these capabilities enable operators to phase in various elements of AI and agentic automation across the stack, while maintaining operational control and trust in live network environments.
“As networks evolve from static infrastructure into programmable, AI-native platforms, there’s growing pressure to manage unpredictable traffic patterns driven by AI-intensive workloads. Our latest advancements are designed to help operators move toward higher levels of network autonomy, resulting in faster decision-making, automated operations, and more efficient use of network resources,” said Pallavi Mahajan, Chief Technology and AI Officer, Nokia.
Portfolio details
Nokia’s Agent Library delivers pre-built AI agents that combine sophisticated reasoning, autonomous action, and deep telco expertise to solve high-value operational problems across security, assurance, and service operations. With built-in observability, governance, and “glass box autonomy,” these agents help operators make faster, context-aware decisions in dynamic live network conditions. This includes identifying zero-day attacks, reasoning through complex anomalies, event triage for root cause analysis, troubleshooting service order failures, and multi-agent coordination. Productivity gains typically range from 60 to 80% when compared to traditional operations.
“Autonomous networks are critical to the future of telecoms, and agentic AI is a key enabler for autonomous networks. This is a complex space where telcos need partners with the deep domain expertise to ideate, integrate, and manage agents across their varied network and IT domains. Nokia’s approach to apply agentic AI across its portfolio meets its customers where they are, and is already achieving quantifiable business value,” said Chris Silberberg, Research Manager, Global Telecom Operations and Monetization at IDC.
Autonomous Networks Suite introduces on-premise deployment options and new use cases designed to improve business outcomes, including improved VoLTE service quality, enhanced observability, and optimized subscriber experience in radio access networks. By turning real-time network intelligence into automated operational actions, these capabilities help operators boost service performance, respond faster to operational issues, and deliver more reliable customer experiences.
Nokia’s MantaRay SMO solution, which fully aligns with Open RAN standards and delivers field-proven multi-vendor capabilities for traditional RAN, now features Non-Real-Time RIC functionality, with AI-enabled rApps that manage complex radio networks, detect anomalies, and support dynamic network slicing. It is ready for deployment at scale and capable of handling the most extreme network environments. Nokia is working with leading operators, including NTT DOCOMO, to advance SMO-driven autonomy through MantaRay SON, AutoPilot trials, and future Non-RT RIC and rApp development. Learn more.
In parallel, upgrades to Nokia’s agentic AI framework for IP, fixed, and optical networks include:
IP: Nokia’s Network Services Platform (NSP) lets operators deploy AI agents that can reason using real network context, supporting collaborative operations across agents and allowing guided actions within defined policies and security boundaries. Its first application, an AI-driven troubleshooting agent, helps operators accelerate root-cause identification, reduce alert noise, and improve the accuracy of remediation actions in complex IP networks. Fixed: New agentic AI capabilities in Nokia’s Altiplano, Corteca, and Broadband Easy platforms are helping drive productivity and operational intelligence across home and broadband networks. Benefits include lifting first-contact helpdesk resolution rates above 50%, network incident qualification within five minutes, and a 50% reduction in return visits to construction sites and connected homes. Learn more. Optical: Nokia’s new WaveSuite agentic framework for optical network operations and intelligent analytics provides proactive detection of KPI anomalies and photonic equipment failures before they affect service performance. Combining WaveSuite’s operational reasoning and real-time network insights with NSP agentic framework allows network operators to accelerate root-cause analysis, reduce troubleshooting complexity, and improve remediation accuracy holistically across the IP and optical domains.
Addressing a key industry challenge
These advancements address a key industry challenge: applying AI in network operations in a way that is practical, controlled, and aligned with operational requirements. By embedding AI capabilities directly into existing network management platforms, Nokia enables operators to adopt automation at their own pace, scaling use cases over time.
For operators, the benefits include faster resolution of network incidents, improved operational efficiency, and greater service reliability. End users experience more stable connectivity and reduced service disruptions, with consistent digital experiences across consumer and enterprise applications.
Nokia’s latest innovations are designed for deployment across global markets, supporting leading and emerging operators as they transition toward fully autonomous networks capable of operating at machine speed and adapting continuously to evolving demands.
Nokia at DTW
At DTW, visitors to Nokia’s booth (Hall C3; Stand 306) will experience how to build autonomous networks for the AI era, with multiple demonstrations spanning agentic AI and network autonomy, cross-domain assurance and orchestration, digital twins, AI Ops, and agentic capabilities across IP, optical and fixed networks, as well as autonomous RAN operations.
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Web Page: Autonomous Networks | Nokia
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.
As graphics processing unit (GPU) clusters grow larger and more power-hungry, electrical connections are reaching their limits when it comes to speed, heat, and energy use. In separate announcements, both Goldman Sachs and Nokia (NOK +0.22%) recently flagged photonics as the next critical layer in artificial intelligence (AI) infrastructure. Optical networking, which uses light to move data, offers an alternative path forward.
Let's analyze this enormous commercial opportunity and explore what it could mean for Nokia as the Finnish company quietly transitions from yesterday's leader of mobile devices to an AI networking powerhouse.
Image source: The Motley Fool.
What is photonics, and why does it matter for AI? Photonics is the process of generating, controlling, and detecting light (photons) to transmit information. In AI data centers, silicon photonics takes this process a step further by integrating lasers, modulators, and detectors directly onto chips using existing semiconductor manufacturing lines. This integration can deliver measurable advantages over traditional electrical wiring, including higher bandwidth, lower latency, and reduced power consumption.
As AI training demands ever-larger clusters of GPUs, electrical signals are struggling to keep up without excessive heat and energy waste. Photonics solves this by enabling dense, energy-efficient optical links between chips and racks. This is essential, as compute power is no longer the main constraint of AI development -- connectivity is. Without scalable optical solutions, the next generation of AI applications will be limited by underlying infrastructure rather than silicon's capacity capabilities.
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How large is the optical networking market? Goldman Sachs calls optical networking the next mega-trend in AI infrastructure. Goldman's analysts project the total addressable market (TAM) for optical networking tied to AI to grow ninefold, rising from roughly $15 billion in 2026 to $154 billion by 2028.
The investment bank segments optical networking across two key subcategories. Scale-up networking, which is high-bandwidth connections within racks, accounts for $106 billion of the total TAM. Within scale-up networking are co-packaged optics (CPO), which integrate optical engines directly with processors for maximum efficiency. Goldman estimates CPO to be a $91 billion opportunity at scale.
How is Nokia making a push into photonics? Nokia is scaling its role in the photonics-driven data center shift. The company recently announced that it is expanding advanced test and packaging operations in Allentown, Pennsylvania, specifically focused on photonic chips for optical modules used in AI and telecom networks.
To better demonstrate that this isn't merely a marketing stunt, Nokia's first-quarter 2026 financial results showed clear momentum across the AI infrastructure supply chain. The company's AI & Cloud segment grew 49% year over year and already accounts for 8% of total sales. Moreover, Nokia's Optical Networks segment grew 20%, driven by AI & Cloud design wins for both pluggables and line systems. Meanwhile, the company booked 1 billion euros (~$1.1 billion) in new AI infrastructure orders during the first quarter alone.
When you measure this progress in combination with Nvidia's $1 billion strategic investment in late 2025 for AI-native networking collaborations, Nokia appears to be swiftly transitioning from a traditional telecom player to a meaningful contributor of AI infrastructure solutions via optical technologies.
Despite a strong rally -- Nokia stock has risen roughly 108% so far this year -- I think the company remains an attractive buy. Recent insider buying reinforces my view: In May, several executives and Board members, including Nokia CEO Justin Hotard, collectively purchased millions of dollars of Nokia stock, even as shares roared on heavy momentum.
Nokia is delivering tangible progress in AI infrastructure and making impressive moves across optical networking and photonics solutions. Recent insider buying, combined with secular AI-driven demand and hyperscale capacity expansions, suggests Nokia stock has further upside as the optical networking supercycle begins.
Nokia announces major expansion of U.S. semiconductor advanced test and packaging in Pennsylvania to bolster AI growth
Nokia expands U.S.-based advanced test and packaging operations, critical to the production of photonic chips that will power AI-native networks, with lower power consumption and greater operational efficiency. Investment strengthens U.S. domestic production of critical optical networking technologies powering AI infrastructure.Announcement is part of Nokia's multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity. 16 June 2026
Allentown, Pennsylvania – Nokia today announced a major expansion of its advanced test and packaging (ATP) operations in Allentown, Pennsylvania. The investment will increase domestic production capacity of the optical networking technologies that power scalable AI infrastructure connectivity across the United States. The expansion is expected to nearly double Nokia’s Pennsylvania workforce to more than 500 jobs in engineering, manufacturing, and R&D, while generating a projected economic impact of more than $500M over the next five years.
Today, less than two percent of global semiconductor ATP takes place in the U.S. Nokia’s Allentown facility is one of only a few in the U.S. providing ATP of photonic chips into optical modules for use in AI and telecom infrastructure. Through investment in new manufacturing equipment and an expanded manufacturing footprint, Nokia is increasing the site’s production capacity by up to 10 times its current level, with new capacity expected to be commercially available by the end of the third quarter.
Nokia’s optical technologies provide advanced connectivity solutions for telecom networks to enable AI infrastructure and can reduce energy usage by as much as 75 percent. Nokia’s investment results in the domestic manufacturing of components used in AI infrastructure, creates new jobs, and significantly reduces energy usage in AI communications.
“The AI supercycle is fundamentally reshaping network and infrastructure requirements in the U.S. and globally. Our expansion in Allentown is a direct investment in that future—scaling domestic manufacturing of the optical networking technologies that power AI infrastructure. It also reflects the strong partnership between Nokia, the United States, and the Commonwealth of Pennsylvania to support advanced manufacturing, create jobs, and strengthen U.S. technology leadership and global competitiveness,” said Justin Hotard, President and CEO of Nokia.
“Nokia is doubling down on the Lehigh Valley and ensuring that the future of chip production continues to run through this region because we’ve made smart investments to make Pennsylvania more competitive and proven that our Commonwealth is a great place to do business,” said Governor Shapiro. “As demand for semiconductors continues to grow across industries, we’ll continue to position Pennsylvania as a leader in innovation, with a supportive, thriving business climate that helps companies compete on a global scale. From advanced manufacturing to the research and development of new technology like advanced chip packaging, Pennsylvania has all the resources to be a world leader in chip production.”
“This is great news for Pennsylvania. Nokia is doubling its local workforce to more than 500 good-paying jobs in engineering, manufacturing, and R&D, all while expanding our ability to domestically produce the critical technologies that power AI infrastructure. This matters for both our economy and our national security,” said Senator Dave McCormick. “These technologies also help cut energy use in AI communications, showing that we can lead on innovation while also smartly managing our resources at the same time.”
“Nokia’s investment in Pennsylvania is directly advancing America’s AI leadership,” said Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation at the Department of Commerce. “Supported by CHIPS and Science Act funding, Nokia is deepening its commitment to innovation and the production of photonic chips in the United States. This project enables critical optical technology and strengthens America’s semiconductor supply chain.”
“Nokia’s latest investment is further proof that the Lehigh Valley is becoming a world leader in advanced manufacturing,” said U.S. Congressman Ryan Mackenzie. “With the help of our unparalleled, highly-skilled workforce, Nokia’s local expansion will help our region continue to drive innovation and build the tools behind next-generation technologies. Congratulations to Nokia and the hundreds of local workers who will benefit from this investment.”
The investment includes approximately $30 million from Nokia, which includes bipartisan support of approximately $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS investment tax credit. This expansion is part of Nokia's multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity. It is designed to bolster domestic supply chains for critical communications infrastructure, reinforce U.S. leadership in the technologies shaping the global AI economy and solidify Pennsylvania’s growing role as a hub for advanced manufacturing, telecommunications technology and AI infrastructure.
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.
Key Takeaways Nokia enhanced NSP with agentic AI to improve multi-vendor IP network management and automation.NOK's framework analyzes real-time network data to support faster, smarter operational decisions.Nokia's Troubleshooting Agent helps detect issues faster and reduce alerts, disruptions and costs. Nokia Corporation (NOK - Free Report) has enhanced its Network Services Platform (NSP) by introducing an advanced agentic artificial intelligence (AI) framework that aims to improve the management and automation of multi-vendor IP networks. This innovation marks an important step toward enabling secure, trust-based AI operations in increasingly complex network environments.
Nokia’s new framework enables AI agents to analyze real-time network data, including topology, protocol behavior, service relationships and configuration changes, allowing for faster, smarter and more accurate operational decision-making. By providing a continuously updated view of the network, it helps telecom operators manage growing AI-driven traffic, reduce downtime and ensure more reliable operations.
The platform focuses on transparency, security and control. The AI agents operate within operator-defined policies and access limits, ensuring automated decisions remain safe and aligned with network requirements. It supports communication with external AI systems using protocols such as Model Context Protocol, improving coordination across multi-vendor and multi-domain networks.
The first major use of this platform is an AI-driven Troubleshooting Agent, which helps operators detect network issues faster, reduce unnecessary alerts and resolve problems more efficiently. It enhances service reliability, lowers operational costs and reduces service disruptions for users. This has strengthened the company’s position in next-generation telecom infrastructure and is likely to support its long-term growth.
How Are Competitors Performing in the AI Space?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . ERIC is using AI to make telecom networks smarter and more efficient. The company is improving network automation and performance with AI-powered 5G solutions. Ericsson is working with AI partners to support future telecom technologies.
Cisco is expanding its AI offerings to help businesses build AI-ready data centers and networks. The company is launching AI-powered security and networking tools to improve performance and cybersecurity. Cisco is also developing advanced chips and switches to support growing AI workloads.
NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 179.2% over the past year compared with the industry’s 57.8% growth.
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From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 3.4, below the industry tally of 5.44.
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Earnings estimates for 2026 and 2027 over the past 60 days have remained static at 40 cents and 48 cents per share, respectively.
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Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The equity is tracking among the session's top performers as momentum builds.
JP Morgan Lifts Price ForecastJP Morgan analyst Sandeep Deshpande maintained an Overweight rating on Nokia and raised the price forecast significantly from $14 to $21.
The substantial target increase provided an immediate lift to market sentiment, fueling the upward price movement early in the trading session.
Agentic AI Upgrades Drive MomentumThe analyst upgrade builds upon a stream of positive operational announcements.
International 5G Expansion and NVIDIA CollateralSecuring a hardware anchor for its software evolution, Nokia announced a multi-year partnership expansion in Indonesia with Indosat Ooredoo Hutchison.
The initiative aims to push mid-band 5G coverage to approximately 80% of the network over the next 3.5 years.
Furthermore, this 5G buildout ties into an AI Grid deployment and AI-RAN architecture with NVIDIA Corp., with field trials slated for the end of 2026.
The company is also pairing these announcements with security-focused products, including its Deepfield Genome Shield for proactive, network-wide DDoS detection.
Nokia Stock: Key Technical Levels To WatchNokia is trading 1.6% above its 20-day SMA ($14.92), and it's also well above the 50-day SMA ($12.77) and 200-day SMA ($8.01), which keeps the intermediate and long-term trend pointed up. The 20-day SMA is above the 50-day SMA (bullish), and the 50-day SMA remains above the 200-day SMA after the golden cross in October 2025—typically a longer-term trend confirmation signal.
Momentum, however, is more steady than overheated right now, with RSI at 53.84.
NOK Price Action: Nokia shares were up 1.82% at $15.07 during premarket trading on Monday, according to Benzinga Pro data.
Photo by Mercurious via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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SpaceX SPCX made history on Friday – raising $75 billion in the largest IPO “ever” – promptly gaining 19% in its Nasdaq debut.
The frenzy is real, the story is compelling, but the valuation, hovering around the $2 trillion mark, is already priced for perfection.
And for investors who prefer conviction over crowd psychology, there is a quieter, more grounded opportunity worth considering – Nokia (NOK).
Most people still associate Nokia with the brick-like handsets that dominated the early 2000s. That era is long gone.
Today, Nokia is a global communications infrastructure firm operating across four major business segments – mobile networks, network infrastructure, cloud and network services, and Nokia tech – selling equipment to carriers, hyperscalers, and data center operators across more than 100 countries.
In 2026, the brand licensing operation that handles the phone business is a footnote; the real story is in optical networks, IP routing, and next-generation wireless buildout.
Bank of America Securities now characterizes Nokia as a key data center interconnect and optical transport player, not merely a traditional mobile gear vendor.
And that rebranding is backed by hard numbers. Nokia’s Q1 results showed a 49% year-over-year growth in AI and cloud net sales, alongside €1 billion in orders from AI and cloud customers.
The company raised its “network infrastructure” growth expectations for the full year, particularly for its optical networks and IP networks subsegments that are critical for AI and cloud data centers.
All in all, Nokia stock is not a turnaround story anymore – it’s an infrastructure story with genuine momentum.
The single most “underappreciated” development in Nokia’s recent history is the depth of its team-up with Nvidia.
In late 2025, Nvidia made a direct equity investment in Nokia at $6.01 per share – a huge credibility signal that the broader market has been slow to fully price in.
The two companies are collaborating on AI-powered radio access network tech aimed at building the infrastructure backbone for the 6G era, at a moment when global internet traffic is exploding.
According to Nokia’s own projections, global network traffic is expected to grow roughly fivefold from 2024 levels through 2034, with AI workloads accounting for a disproportionate share of that demand.
Nokia opened an AI Networking Innovation Lab in Sunnyvale this May, a facility designed to co-develop next-generation networks for AI data centers alongside cloud and AI partners.
The SpaceX IPO is a genuine technological marvel wrapped in a financial instrument that demands you believe everything goes right, forever, from day one.
At its session high on Friday, SpaceX briefly touched a market cap approaching $2.21 trillion – a figure that leaves virtually no room for error, execution risk, or the “ordinary turbulence” that every young public company faces.
Let’s face it: history is littered with transformative firms that proved terrible early IPO investments precisely because the hype front-ran the fundamentals by years.
Nokia stock, by contrast, offers a different kind of proposition. With about $19.22 billion in annual revenue and a market cap of $82 billion, it trades at a meaningful discount to sales.
It’s an almost paradoxical setup for a business posting 49% artificial intelligence (AI) sales growth and attracting NVDA as a strategic investor.
NOK shares outperformed the broader technology equipment sector on Friday, even as the market’s attention was consumed entirely by the SpaceX spectacle – a quiet reminder that the most durable gains are often made away from the spotlight.
For investors who want real AI infrastructure exposure without paying a “once-in-a-generation” premium to get it, Nokia deserves a serious look, especially since Wall Street firms also currently rate it at “Overweight”.
Nokia stock is trading at elevated levels. Where is NOK stock headed? What’s Driving Nokia’s Recent Stock Rally?The latest swing in Nokia follows a massive rally that pushed shares to a new 52-week high, driven by the company's push into artificial intelligence infrastructure and the launch of an AI Networking Innovation Lab. The lab effort includes partners such as Advanced Micro Devices, Keysight Technologies, Lenovo Group and Super Micro Computer.
Nokia also highlighted FCC approval for its in-home broadband devices, positioning U.S. broadband device deployments to continue "without disruption" and helping keep customer rollouts on track.
Nokia's setup is also getting a sentiment lift from the AI optics trade after Nvidia disclosed a $1.86 billion stake in Coherent (about 7.8 million shares), highlighting optical networking as a potential next bottleneck for AI scale-out. That matters for Nokia because it sells the IP and optical gear that connects high-density compute.
Nokia Stock: Key Levels And Momentum IndicatorsNokia is still in a strong longer-term uptrend: at $15.54, the stock is trading 13.2% above its 20-day SMA ($13.83) and 112.9% above its 200-day SMA ($7.35), showing how extended the move has become after the run toward the highs. The 20-day SMA remains above the 50-day SMA, and the golden cross (50-day SMA above the 200-day SMA) reinforces the bullish structure that's been in place since October 2025.
For momentum, RSI is the cleaner read right now: it entered overbought territory in May and that "stretched" condition can make the stock more sensitive to profit-taking near obvious ceilings. MACD is also constructive (above its signal line with a positive histogram), which suggests downside pressure is easing even if the stock chops around near resistance.
Key Resistance: $16.63 — the 52-week high, close enough to act like a near-term ceiling if sellers keep fading strength Key Support: $13.83 — near the 20-day SMA, a level that often matters when an extended trend pulls back How Nokia Operates In The Networking SpaceNokia 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 equipment and software), network infrastructure (IP, optical and fixed-network gear like routing/switching and fiber access) and a portfolio segment of businesses it views as less central longer term.
That mix is why the market is reacting to the AI-infrastructure angle: AI data centers and AI-native networking can pull through demand for high-speed optical and IP networking, where Nokia is trying to position its product roadmap. The FCC approval item also matters because it reduces rollout friction for broadband devices in the U.S., helping keep deployments and customer timelines on track.
Nokia’s Benzinga Edge: Strengths and WeaknessesBelow 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-driven profile with strong quality backing, but a weak value score that suggests the market is already paying up for the AI/networking narrative. For longer-term holders, that often means pullbacks toward support can matter more than chasing strength into the 52-week high.
Nokia Stock Price Activity in Premarket TradingNOK Stock Price Activity: Nokia shares were trading at $15.72 during premarket trading on Thursday, according to Benzinga Pro data.
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Nokia stock is showing upward bias. Where are NOK shares going? What’s Driving Nokia’s AI Infrastructure Narrative?Nokia's AI-infrastructure narrative remains the core driver after the company launched an AI Networking Innovation Lab aimed at "AI-native" data center networking for large-scale training and real-time inference. The company has also pointed to FCC approval for its in-home broadband devices, which it says helps keep U.S. deployments without disruption.
Nokia's rally has also been riding the AI optics theme after Nvidia disclosed a $1.86 billion stake in Coherent, about 7.8 million shares, putting a spotlight on optical networking as a potential next bottleneck for AI scale-out. That matters for Nokia because it sells the IP and optical gear that connects dense compute clusters.
Nokia also got a sentiment nudge after a high-profile TV callout tied the move directly to its AI push and "6G AI," with the comment that "people who are very smart tell me to buy it." That kind of attention can amplify momentum trading in a name that's already extended, even if it doesn't change fundamentals overnight.
Nokia Stock: Key Levels To WatchThe bigger picture is still an uptrend: Nokia is up 185.61% over the past 12 months and is trading 8.8% above its 20-day SMA ($13.97) and 105.2% above its 200-day SMA ($7.41). That kind of distance from longer-term averages often raises the odds of choppy, two-way trade as buyers and sellers fight over "how much is already priced in."
Trend structure remains constructive, with the 20-day SMA above the 50-day SMA and a golden cross in October 2025 (50-day SMA above the 200-day SMA) still in place. Momentum also leans supportive: MACD is above its signal line and the histogram is positive, which in plain English suggests downside pressure is easing versus the prior downswing even if price action stalls near the highs.
Key Resistance: $16.63 — the 52-week high, close enough to act like a near-term ceiling if sellers keep fading strength Key Support: $13.97 — near the 20-day SMA, a level that often matters when an extended trend pulls back Nokia Benzinga Edge Rankings: Momentum And Quality InsightsBelow 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-driven profile with solid quality backing, but a valuation that looks stretched. For longer-term holders, the key question is whether the stock can keep building a base below the $16.63 high without losing the 20-day trend support near $13.97.
Nokia Stock Price Activity In Premarket TradingNOK Stock Price Activity: Nokia shares were trading at $15.22 during premarket trading on Friday, according to Benzinga Pro data.
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Nokia Corporation
Managers’ transactions
31 May 2026 at 13:00 EEST
Nokia Corporation - Managers' transactions (Hanrahan)
Transaction notification under Article 19 of EU Market Abuse Regulation.
____________________________________________
Person subject to the notification requirement
Name: Hanrahan, Victoria
Position: Other senior manager
Issuer: Nokia Corporation
LEI: 549300A0JPRWG1KI7U06
Notification type: INITIAL NOTIFICATION
Reference number: 158758/5/6
____________________________________________
Transaction date: 2026-05-26
Venue: XNYS
Instrument type: SHARE
ISIN: US6549022043
Nature of the transaction: ACQUISITION
Transaction details
(1): Volume: 22713 Unit price: 16.0179 USD
Aggregated transactions
(1): Volume: 22713 Volume weighted average price: 16.0179 USD
____________________________________________
Transaction date: 2026-05-28
Venue: XNYS
Instrument type: SHARE
ISIN: US6549022043
Nature of the transaction: ACQUISITION
Transaction details
(1): Volume: 21969 Unit price: 15.5984 USD
Volume: 44682 Volume weighted average price: 15.8117 USD
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.
Inquiries:
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Communications
Phone: +358 10 448 4900
Email: [email protected]
Maria Vaismaa, Vice President, Corporate Communications
Long known for mobile brick phones and traditional telecom infrastructure, Nokia (NOK +4.93%) is quietly in the middle of an exciting transformation. Back in October, Nvidia (NVDA +0.15%) made a $1 billion strategic investment in Nokia, marking a major turning point as the telecom provider pushed into artificial intelligence (AI).
Since Nvidia's investment, Nokia's stock has climbed from roughly $6 to just below $15, reflecting growing investor excitement around the company's AI ambitions. Adding to this momentum is a flurry of insider purchases.
NOK data by YCharts.
Let's explore how Nokia is transforming its telecom roots into an AI-focused ecosystem, and assess whether early results are compelling enough to support following the company's insiders and buying the stock.
How are Nokia and Nvidia working together? Nvidia's investment in Nokia focuses on developing AI-RAN technology and on the telecom industry's shift from 5G to AI-native 6G networks. Nvidia is embedding its graphics processing units (GPUs) and Arc-Pro computing platform into Nokia's radio access network software. This integration allows mobile operators to run intelligent, real-time AI at the network edge rather than outsourcing to centralized data centers.
Image source: Nvidia.
How is Nokia becoming an AI business? Rather than pivoting away from its telecom roots, Nokia is embedding AI capabilities on top of them, turning decades of connectivity expertise into a competitive advantage in the AI infrastructure landscape. Essentially, Nokia is repurposing its core telecom assets -- radio access networks, optical transport systems, and Internet Protocol (IP) routing -- into the foundation of an AI-centric ecosystem.
The shift is savvy, as it prioritizes several high-growth areas within the AI infrastructure realm, including data center networking equipment, high-bandwidth optical systems for training and inference clusters, and intelligent mobile distribution that embeds AI capabilities directly at the edge.
The company's optical networking portfolio has been strengthened by its Infinera acquisition in February 2025, positioning Nokia as an essential infrastructure provider for handling massive data flows required by AI workloads. In turn, Infinera has helped Nokia evolve its transport and routing solutions to deliver scalable, energy-efficient connectivity solutions for hyperscale data centers.
In addition, Nokia is advancing cloud-native architectures and automation tools that allow broadband networks to become more autonomous and intelligent.
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Insiders are buying Nokia stock amid the current surge During the first quarter, Nokia posted net sales of EUR 4.5 billion ($5.23 billion), representing 2% growth year over year. While this looks mundane on the surface, the real star of the company's Q1 earnings was the newly formed AI business.
Revenue from AI and cloud customers grew 49% and now accounts for 8% of total sales. The company also secured EUR 1 billion ($1.16 billion) in new AI-related orders, particularly in optical networking, which itself grew 20%. While it's still early, these figures suggest that Nokia can convert its legacy telecom infrastructure into tangible AI traction rather than simply riding market hype.
This company's positive momentum has coincided with notable insider buying over the past couple of months. Below is a list of significant recent purchases made by Nokia's C-suite:
Justin Hotard (Nokia CEO): Purchased 84,404 shares in late April 2026 at an average cost of EUR 9.15 ($10.64) per share. Timo Ihamuotila (board member): Purchased 50,000 shares at an average price of EUR 9.10 ($10.58). Konstanty Owczarek (chief corporate development officer): Purchased 70,000 shares between average prices of EUR 15.34 ($17.84) and EUR 15.99 ($18.59). Broadly speaking, when multiple insiders purchase shares during a strong price run, it could be a signal that they believe the current valuation remains attractive relative to the company's long-term opportunity.
With that said, should investors follow suit and buy Nokia stock right now? To me, the story is compelling: Nokia possesses genuine AI momentum in an emerging frontier, the company managed to forge a high-profile partnership with Nvidia, and there appears to be aligned insider conviction. Taken together, these points indicate meaningful multiyear growth in an addressable market expected to reach $200 billion by 2030.
Investors with a long-term time horizon who have bought into the AI networking thesis may find Nokia an attractive opportunity despite the recent run-up. All told, Nokia's transformation is real, but whether it translates into sustained market leadership will ultimately be determined by management's consistent execution in the quarters and years ahead throughout the AI infrastructure revolution.
Nokia has emerged as one of the standout performers in European telecoms this year, with its shares rising more than 140% year-to-date to about $16 as of May 26. The inflection point came in October 2025, when Nvidia invested $1 billion in Nokia at $6.01 per share, taking roughly a 3% stake. Optical network infrastructure revenues rose 56.4% year-on-year to €821 million, driven by hyperscaler demand for data center connectivity as companies scale AI capacity.
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Key Takeaways Nokia gained 159.6% in six months, outperforming its industry, sector and the S&P 500.Nokia launched an AI Networking Innovation Lab with partners including AMD, Lenovo and Supermicro.Nokia faces telecom revenue weakness, flat Radio Networks growth and intense industry competition. Nokia Corporation (NOK - Free Report) shares have gained 159.6% in the past six months compared with the industry’s growth of 43.8%. 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 37.6%, and shares of Arista have risen 33.6%.
Key Growth Drivers for NokiaNokia is actively venturing into the fast-growing AI data center networking market. The company launched an AI Networking Innovation Lab in Sunnyvale, California, where customers and partners can design, test and validate AI networking architectures. AI training clusters require ultra-low latency, high bandwidth and advanced congestion management.
By supporting enterprises in testing and matching these requirements, Nokia is strengthening its position in the AI networking market. 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. Nokia’s AI agent effectively addresses major issues for broadband operators, such as rising operational costs and growing complexity related to fiber and Wi-Fi networks. It is leveraging experience from more than 600 million deployed broadband lines, creating a substantial data advantage. This makes the AI system more precise.
Beacon and Optical Network Terminal broadband devices received conditional approval from the U.S. Federal Communications Commission, exempting the products and future variants from Covered List restrictions. The approval enables service providers to continue deploying Nokia’s broadband solutions without disruption and supports long-term network investment planning. Such developments bode well for long-term sustainable growth.
Major ChallengesNokia is experiencing weakness in its telecom business. Telecommunication Provider revenues declined 2% year over year in the first quarter of 2026. Nokia generates 73% of total revenues from this vertical. Declining trends in this segment remain a major concern for the company.
The Radio Networks business also remained flat year over year, owing to weak demand in the North America region. Amid weakness in its legacy business, Nokia is also facing competition from other major players in the industry. Ericsson remains a major competitor in verticals like radio access networks (RAN), core networks and AI RAN. In the AI data center networking, it faces competition from Arista Networks.
It generates substantial revenue 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. The company’s history of acquisitions and broad global footprint also introduces integration and operational complexities.
Estimate Revision TrendThe company’s earnings estimates for 2026 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 premium compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 37.18 forward earnings, higher than 35.59 for the industry and above its mean of 16.26.
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End NoteAI and cloud and vertical are emerging as major growth drivers for the company. Strong demand from AI data centers and cloud providers is driving growth in the optical networks vertical. Launch of leading-edge AI innovation lab and growing collaboration with major players such as AMD, Lenovo, Supermicro, Keysight and VIAVI is strengthening its position as a key supplier of AI-native data center networking infrastructure. However, stiff competition from other major players and sluggish spending behavior from telecom customers are weighing on margins. 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 stock is trading at elevated levels. What’s next for NOK stock? What’s Driving Nokia’s Stock Momentum?The latest push is still tied to Nokia's AI Networking Innovation Lab, which is aimed at AI-native data center networking for large-scale training and real-time inference, plus FCC approval for its in-home broadband devices that the company says helps keep U.S. deployments moving without disruption.
The rally has also been riding AI optics attention after Nvidia disclosed a $1.86 billion stake in Coherent putting a brighter spotlight on optical networking as a potential bottleneck for AI scale-out. That matters for Nokia because it sells the IP and optical gear that connects dense compute clusters.
NOK Stock: Key Technical Levels To WatchThe longer-term trend is still clearly up: the stock is up 215.54% over the past 12 months and is trading above every major moving average (about 16.5% above the 20-day SMA at $14.40 and about 121.2% above the 200-day SMA at $7.58). That kind of extension often supports the bull case, but it can also make pullbacks sharper when momentum cools.
Trend structure remains constructive with the 20-day SMA above the 50-day SMA, and the golden cross that formed in October 2025 (50-day SMA above the 200-day SMA) still in place after the death cross in August 2025. From a momentum lens, MACD is above its signal line and the histogram is positive, which points to improving momentum versus the prior downswing; in plain English, that usually means selling pressure is fading even if price chops near the highs.
NOK is also pressing the top of its 52-week range ($4.00 to $17.11), which is where breakouts can either accelerate or fail into quick profit-taking. If the stock can't clear the prior peak cleanly, traders often watch for a "base" to form above short-term trend support rather than chasing strength.
Key Resistance: $17.11 — the current 52-week high zone, which can act like a near-term ceiling Key Support: $14.40 — near the 20-day SMA, a common first line of support in an extended uptrend Nokia Benzinga Edge Rankings: Strengths And WeaknessesBelow 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-driven profile with solid quality backing, but weak value support. For longer-term holders, the setup often comes down to whether the stock can consolidate near the highs without losing short-term trend support, because valuation leaves less room for disappointment.
NOK Stock Price Movement During PremarketNOK Stock Price Activity: Nokia shares were up 0.06% at $16.86 during premarket trading on Wednesday, according to Benzinga Pro data.
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