HELSINKI – Trading on the Nasdaq Helsinki exchange is underway, with the main equity session continuing until 18:30 local time. As of 16:01 EEST, Nokia Corporation (HEL:NOKIA) shares were trading at €8.35, up 0.34% on the day.
The modest gain follows news that Nokia has been named a partner in Zankore, a large-scale artificial intelligence initiative in Indonesia. The project brings together Indosat Ooredoo Hutchison (IDX:ISAT), Ooredoo Q.P.S.C. (DSM:ORDS), Nokia, and NVIDIA Corp. (NASDAQ:NVDA). Zankore plans to deliver approximately 200 megawatts (MW) of AI capacity in the first half of 2027, with a longer-term ambition to scale to 1 gigawatt (GW) – a fivefold increase.
While the scale of the project is evident, Nokia has not disclosed the contract value or expected margins. This lack of financial detail leaves investors unable to translate the gigawatt targets directly into earnings for the Finnish telecom equipment maker. The company's role, as described by CEO Justin Hotard, is to provide the project's “trusted connectivity fabric,” outlining its technology responsibilities without specifying revenue implications.
Ooredoo, the main investor, has committed roughly $800 million to the project, with an estimated cumulative EBITDA contribution of about $600 million over the first five years. However, these figures pertain to Ooredoo's own ownership returns, not to Nokia's supplier revenue – a distinction that analysts note is critical.
Nokia's involvement in Zankore comes amid strong momentum in its AI and cloud business. In the second quarter of 2026, sales to AI and cloud customers jumped 105% year-over-year to €446 million, up from approximately €218 million in the prior-year quarter. The company's comparable operating profit rose 18% to €434 million, beating consensus estimates, while net sales increased 8% to €4.815 billion. Comparable diluted earnings per share climbed 75% to €0.07.
Looking ahead, order activity will be a key indicator. Nokia booked €2.8 billion in orders from AI and cloud clients in Q2, with management expecting roughly 50% to convert to revenue over the next 12 months – an initial estimate of €1.4 billion. However, supply constraints could hamper that conversion. Hotard noted that high demand is leading customers to make longer-term commitments, while competitor Ericsson (STO:ERIC-B) has warned about rising memory costs due to AI. Ericsson shares were largely unchanged on Friday.
Friday's trading activity should be viewed with caution, as volumes have been volatile. Nokia's stock has seen swings in recent sessions: it gained 6.5% on Tuesday, then fell for two consecutive days, before recovering on Friday. As of the latest data, shares are roughly 4.9% higher than their July 31 close, but the figure remains subject to change as trading continues.
Analysts hold a range of views on Nokia's prospects. The consensus 12-month price target is €10.325, implying a 24% upside from Friday's price, but targets vary widely – from €4.65 to €18.00. Deutsche Bank (ETR:DBK) has a “Buy” rating with a €11.50 target, while Barclays (LON:BARC) is more bearish with a “Sell” and an €8.00 target. JPMorgan (NYSE:JPM) is the most optimistic, seeing the stock at €18.00.
Nokia maintains its full-year guidance, expecting comparable operating profit between €2.1 billion and €2.6 billion in 2026. The next key data point will be recorded AI-networking revenue. Risks include slower-than-expected Zankore expansion, undisclosed contract terms, semiconductor supply, memory costs, tariffs, exchange rates, and end-user demand.
