Nokia's AI Bet Splits the Market as Earnings Verdict Nears
Published on 07/07/2026 at 06:12 | Redaktion boerse-global.de
Nokia’s pivot toward artificial intelligence is accelerating, but the share price tells a more cautious story. The Finnish telecom-equipment maker has racked up a string of partnerships, product launches and analyst upgrades in recent weeks, yet its stock has fallen sharply from the June high, underscoring a widening gap between operational momentum and investor sentiment.
On Monday, shares closed at €10.95, down more than 2% on the day and roughly 27% below the peak reached last month. The sell-off has erased some of the year’s spectacular gains — Nokia is still up nearly 97% since January — but the short-term chart looks fragile. The stock now trades below its 50-day moving average of €12.05, and traders are watching the psychological €10 support level closely.
The weakness comes despite a flurry of strategic moves. Last week, Nokia announced a partnership with KKR-owned FiberCop to turn Italy’s fiber-optic networks into intelligent sensors. The system uses AI to detect environmental threats such as floods and earthquakes in real time, opening an entirely new market for the company’s infrastructure. Separately, Nokia deepened its alliance with Alphabet, jointly developing six AI agents based on Google’s Gemini models to automate complex network tasks. The agents are slated for launch on the Google Cloud Marketplace in September 2026.
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On the consumer side, HMD Global — the Finnish firm that licenses the Nokia brand for phones — unveiled four new feature phones on Monday. The devices come with a dedicated button for a generative AI assistant, a move aimed at bringing smart functionality to entry-level handsets. Meanwhile, Nokia strengthened its presence in India by appointing Priya Narayanan as chief technology officer for customers, tasked with driving integrated solutions for major telecom providers.
The cloud and AI segment is the standout performer. Revenue from that unit grew 49% in the first quarter, and the order backlog now stands at roughly €1 billion — a figure analysts expect to be confirmed or exceeded when Nokia reports half-year results on 23 July 2026. Bank of America analyst Oliver Wong responded last week by reaffirming his buy recommendation and lifting the price target from €14.40 to €15.60, citing the company’s strong positioning in AI and cloud infrastructure.
Yet the broader market is fixated on the legacy networking business, which continues to weigh on results. Even as Nokia pushes into high-growth areas, investors are demanding concrete evidence that the new strategy is translating into profits. The upcoming earnings report will provide the first hard numbers on whether the intelligent-network push is already showing up in the balance sheet.
Chart watchers note that the long-term uptrend remains intact — the 200-day moving average sits at €7.55, well below the current price. But for the rally to resume, the €10 support must hold in the near term, and the 23 July numbers need to deliver the promised AI-related orders. Until then, Nokia’s stock is caught between a transformative vision and a skeptical market.
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