Nokia's AI Photonics Expansion and Telecom Italia Contract Underpin Bullish Case as Stock Doubles in 2025
Published on 07/10/2026 at 13:06 | Redaktion boerse-global.de
Nokia is making a two-pronged push into the next generation of connectivity, securing a major 5G victory in Italy while simultaneously scaling its capacity for the artificial-intelligence data-center market. The twin developments come as the Finnish network-equipment maker’s shares trade roughly 26% below their June peak, even after more than doubling since the start of the year.
The stock was changing hands at €11.11 on Friday, down 1.72% on the session, putting the company’s market capitalization at approximately €61.6 billion. That marks a sharp retreat from the 52-week high of €14.97 reached in early June, but the year-to-date gain of more than 103% reflects a decisive strategic re-rating.
Fidelity Trims Stake While Nokia Awards Shares to Management
Not all news has been uniformly positive. US fund giant FMR LLC has reduced its Nokia holding below the 5% disclosure threshold, reporting a 4.87% stake as of July 8, down from 5.20% previously. The filing was made under Finnish securities law.
Meanwhile, on July 9, Nokia transferred 43.5 million of its own shares to participants in its employee incentive programs, including Chief Financial Officer Marco Wirén. The transfer, executed without direct consideration, was authorized by a board resolution from October 2025 aimed at aligning management interests with those of shareholders. Following the transaction, Nokia retains 88.6 million treasury shares.
Should investors sell immediately? Or is it worth buying Nokia?
AI Infrastructure: €1 Billion in Orders and a Photonics Capacity Leap
Investor attention, however, remains fixed on Nokia’s pivot toward the booming artificial-intelligence infrastructure market. The company opened a new innovation lab in Sunnyvale, California, in May, where it partners with AMD, Keysight, Lenovo, and Nscale to develop high-performance network architectures for AI model training and inference.
The momentum has already translated into order flow. JPMorgan recently upgraded its view on Nokia following reports that the company had secured roughly €1 billion in AI- and cloud-related optical contracts. To meet surging demand for high-speed data-transmission components, Nokia is ramping up its photonic-chip packaging capacity at its Pennsylvania facility tenfold — a move that underscores its bet on the optical layer as the backbone of tomorrow’s data centers.
5G Gains in Europe: Telecom Italia Win Strikes at Ericsson
On the traditional networking side, Nokia is also winning market share from its archrival Ericsson. In November 2025, the company signed a three-year contract with Telecom Italia to modernize its 5G network, taking over roughly 10,000 sites that were previously operated by the Swedish rival. The deal is expected to lift Nokia’s share of Telecom Italia’s radio access network by about 40 percentage points.
The Italian victory follows a similar success with VodafoneThree in the UK, giving Nokia back-to-back large-scale wins in the European 5G market. Analysts see the trend as evidence that the company’s turnaround in mobile infrastructure is gaining traction.
Nokia at a turning point? This analysis reveals what investors need to know now.
Stock Pulls Back Despite Strong Underlying Fundamentals
For all the strategic progress, the share price has cooled noticeably from its early-June highs. On a one-month view, Nokia’s stock is down 4.22% and is trading below its 50-day moving average of €12.10. The relative strength index of 45.9 signals neither overbought nor oversold conditions, while an annualized volatility of around 71% suggests the ride remains volatile for short-term traders.
Investors will get a fresh look at the numbers on July 23, when Nokia reports second-quarter earnings. After the recent string of AI contract wins and 5G network gains in Italy and the UK, the market will be watching to see how much of that momentum is flowing through to the bottom line.
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Nokia Stock: New Analysis - 10 July
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