Nokia’s AI Revenues Are Gaining Traction as the Stock Tries to Leave Its Old Identity Behind
Published on 08/12/2026 at 18:12 | Redaktion boerse-global.de
Nokia is suddenly being judged less as a legacy telecom supplier and more as a potential beneficiary of the AI build-out. That shift has helped the stock, but it has not erased the damage from the past few weeks: the shares still sit well below their recent peak even after the latest rebound.
The immediate catalyst was a guidance upgrade. Nokia raised its full-year revenue outlook for its network infrastructure segment after what management described as an order wave from AI and cloud customers. The company also said revenue contribution from those businesses has doubled from a year earlier. At the same time, quarterly revenue rose 8 percent to 4,82 billion euros, while the AI and Cloud division almost doubled its sales and expanded by 103 percent. That unit now accounts for 9,3 percent of total revenue.
Investors also got a concrete backlog figure to focus on: 2,8 billion euros in orders. CEO Justin Hotard used those numbers to justify the stronger outlook. The market response was positive, though not uniform in the two trading snapshots provided: one report described a 9 percent jump to 9,02 euros, while another put the Tuesday move at 3,5 percent, with the shares ending the session at 8,28 euros.
What matters now is whether those AI-linked orders turn into durable, profitable growth. That is the central debate around the stock. Nokia is no longer just selling 5G kit to mobile operators; it is increasingly supplying the high-performance networking gear that data centres need for the AI era. The scale of the opportunity is being reinforced elsewhere in the market too. Nvidia, Blackstone and other large financial institutions are planning a 500 billion dollar AI infrastructure fund, while cloud provider CoreWeave says its own capacity is already sold out.
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Nokia is getting help from outside its own business as well. Strong numbers from Lumentum, a supplier of optical components, have been read as a signal that demand is firm across the sector. And in the US, the FCC is reportedly considering restrictions on optical transceivers made in China. If that goes ahead, competition would ease for western vendors, including Nokia.
The company’s own project pipeline adds another layer to the story. In Indonesia, Nokia is working with NVIDIA and Indosat on “Zankore,” an AI infrastructure build-out with a target capacity of 1 gigawatt. The first phase, 200 megawatts, is scheduled to come online in the first half of 2027.
There are operational signs that the turnaround is more than just talk. In the second quarter, optical products grew 19 percent and IP networks rose 15 percent. Between May and July 2026, several top executives also bought shares near the current level, which investors may read as a vote of confidence in the strategy. For income-focused holders, the company offers a quarterly dividend of 0,04 euro per share.
Still, the chart does not suggest a clean breakout. Nokia remains 39,7 percent below its 52-week high of 14,97 euros, reached in June, or 44,72 percent under that same peak in the second report. It is also 20,88 percent below the 50-day moving average at 10,46 euros, while the next technical reference point is the 100-day average at 10,25 euros. On the downside, the 200-day average at 8,05 euros is the first line to watch; the stock was said to be just 2,80 percent above that level. The RSI at 50,1 points to neither an overbought nor an oversold reading. Annualised 30-day volatility stands at 71,62 percent.
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The broader setup remains mixed. Nokia had already fallen 12,3 percent over one month in one of the reports, while the other said the shares had lost almost 20 percent in the past 30 days. Even after the recent bounce, the stock is still up 152,8 percent over 12 months and 48,05 percent since the start of the year. Its market value is put at 44,88 billion euros.
For now, the shares are being pulled in two directions. The AI business is clearly accelerating, the guidance has moved higher and external conditions are supportive. But investors are still waiting for proof that this new growth engine can deliver margin-rich revenue at scale, rather than another short-lived burst of enthusiasm.
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