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.
For most of the past decade, Nokia (NYSE: NOK | NOK Price Prediction) was the patience trade nobody wanted.
NOK opens an AI networking lab in Sunnyvale to build AI-native data center tech with partners and validate real-world multi-vendor designs.
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Nokia Oyj (NOK) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
NOK adds agentic AI to Altiplano, Corteca and Broadband Easy to cut costs, speed fiber rollouts and auto-fix home broadband issues.
NOK surged 162% in a year as 5G wins, AirScale and O-RAN traction build, but margin woes and soft end markets test the rally.
Nokia (NOK) is getting explosive growth from its optical network business from AI data center buildouts. Nvidia's $1Bn investment for a 3% stake in it will ensure competitiveness in mobile networks. The growth from data center networks, which will 40% of Nokia's revenue by 2028, will allow it a much higher multiple.
Analysts at Argus see a compelling opportunity in Nokia (NYSE:NOK | NOK Price Prediction), upgrading the Finnish networking giant's shares to Buy from Hold with a $15 price target.
Nokia is benefiting from AI-driven growth, particularly in its Optical Networks and AI & Cloud networking units. NOK forecasts Network Infrastructure sales to grow 12%–14% CAGR through 2028, with Optical Networks now targeting 18%–20% growth. The telecom company should benefit from substantial margin expansion, as operating margins in Network Infrastructure are targeted to more than double by 2028.
NOK posts mixed Q1 results as optical network strength lifts revenue, but sales miss estimates despite profit gains and a rising AI-driven demand outlook.
Nokia Oyj (NOK) Q1 2026 Earnings Call Transcript