Nokia Oyj’s U.S.-listed American Depositary Receipts (ADRs) climbed 3.81% to close at $12.82 on Friday, snapping a two-day losing streak as investors continued to bet on the Finnish telecom equipment maker’s pivot toward artificial intelligence (AI) data-center networking. The rebound outpaced the Nasdaq Composite’s 1.71% gain, with 95.9 million shares changing hands, according to MarketWatch.
The rally follows a mid-week drop that had raised questions about Nokia’s ability to sustain momentum amid lingering margin pressures in its traditional telecom gear business. However, the company’s first-quarter results, released in April, provided a fresh catalyst. Comparable operating profit rose 54% to 281 million euros, surpassing the 250 million euro average estimate from analysts polled by Infront. Comparable net sales grew 4%, with sales to AI and cloud customers surging 49%.
Chief Executive Justin Hotard emphasized that Nokia is investing to capture what he called “accelerating demand from AI & Cloud customers.” The company maintained its 2026 comparable operating profit target of 2.0 billion to 2.5 billion euros. The strong quarterly performance lifted Nokia’s shares in Helsinki to their highest level since April 2010.
The shift in Nokia’s narrative is reshaping its competitive landscape. While Ericsson remains the traditional yardstick for radio network equipment, the AI and optical networking story now brings Ciena and Cisco into the discussion. The focus is on cloud build-outs and high-speed data transport rather than just mobile network spending.
Bank of America analysts, led by Oliver Wong, upgraded Nokia to Buy last month and raised their price target to 10.70 euros. They cited the acquisition of Infinera as expanding Nokia’s exposure to U.S. cloud customers, calling the company an “optical powerhouse with a European advantage.” However, the broader analyst consensus is more cautious. MarketBeat reports that 18 analysts covering Nokia’s NYSE-listed shares have a “Moderate Buy” average rating, with 12 buys, four holds, and two sells. The average 12-month price target of $9.71 sits below Friday’s close, suggesting the stock has run ahead of fundamentals.
Nokia has also been exploring a defense angle. On May 5, Nokia Federal Solutions and Lockheed Martin launched a modular 5G product for U.S. and allied defense forces, aligned with the U.S. Army-backed CMOSS standard. Nokia Federal CEO Mike Loomis called it a “ready-to-use solution,” while Lockheed executive Sarah Hiza said the aim is gear that can be “deployed, sustained and trusted.”
Despite these moves, risks remain. Simply Wall St warned that the Lockheed launch does not materially alter the near-term focus on hyperscaler demand, and that price competition and margin pressure in core networks could still weigh on the case. If cloud orders pause or telecom operators cut radio spending, Nokia could look priced for a cleaner transition than it can deliver. Hotard himself has noted that Europe’s infrastructure gap is a constraint, telling Reuters that developers move where infrastructure exists—which remains largely the United States and China.
For now, Friday’s rebound signals that investors have not abandoned the AI-networking trade. But the next leg will depend on orders, margin improvement, and execution—not nostalgia for the old Nokia name.
