Nokia’s Share Surge Extends as Analyst Upgrade and Leadership Change Signal Confidence in AI Shift

Nokia’s stock has more than doubled this year, reaching a new annual high of €12.55 on Wednesday before profit-taking pulled it back to €11.91 the following session. By Friday, the shares had eased further to €11.81, shedding roughly 5% from the peak. The pullback does little to alter the overarching trend: the Finnish telecom equipment maker has climbed 112% since January, driven by a decisive pivot toward artificial intelligence infrastructure.

To accelerate that transformation, Nokia has appointed Emma Falck as president of its mobile infrastructure division, effective September 1, 2026. Falck, a physicist with a doctorate, joins from Siemens, where she led global teams in smart building infrastructure. Her previous roles include senior positions at KONE and the Boston Consulting Group. She will report directly to CEO Justin Hotard, replacing Tommi Uitto, whose departure was linked to strategic disagreements over the company’s direction.

Falck’s appointment underscores Hotard’s bet on a future powered by robotics, autonomous vehicles, and AI-native network architectures. In the near term, she must defend Nokia’s traditional radio access network (RAN) business against archrival Ericsson while juggling critical 5G contract renewals and laying the architectural groundwork for 6G. The company is also streamlining its portfolio, selling its fixed wireless access division to Inseego to concentrate fully on AI infrastructure.

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The strategy is already showing financial returns. Nokia reported first-quarter revenue of €4.5 billion, with adjusted earnings per share jumping 67%. The optical networks segment, a direct beneficiary of AI data center buildout, grew 20% year-on-year. Management reaffirmed its full-year target for operating profit between €2 billion and €2.5 billion. After the acquisition of Infinera, gross margins improved in the first quarter, and net liquidity stands at a comfortable €3.8 billion. Shareholders receive an annual dividend of €0.14 per share.

Analysts are increasingly optimistic. Deutsche Bank raised its price target sharply from €8.50 to €13.50, maintaining a buy rating and citing surging demand for network equipment in data centers. JPMorgan lifted its target from €6.90 to €12.00, while Argus upgraded the stock to “buy,” pointing to strong AI demand and upgraded growth forecasts.

Beyond the core mobile business, Nokia is embedding “agentic AI” into its fixed-network platforms to automate broadband management. The company estimates the addressable market at $6.2 billion by 2030, with early traction visible in its optical unit. According to Dell’Oro Group, Nokia remains among the global top five in the RAN market. Weakness in North America is being offset by growth in Europe, the Middle East, and Asia. Specialist contracts, such as a 5G system development for Lockheed Martin, provide additional ballast.

With Falck set to take the helm in September, Nokia is continuing to negotiate key 5G extensions and define its 6G architecture. The combination of a new industry-focused leader and strong analyst backing suggests the rally could have further room to run — even if occasional profit-taking punctuates the ascent.

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