Nokia Oyj continued its upward trajectory in Helsinki on Wednesday, pushing its stock to a fresh 52-week high as investor enthusiasm around artificial intelligence growth shows no signs of abating. The shares traded at approximately €14.71, surpassing the previous close of €14.46, and briefly touched €14.75 during the session. This marks the highest level for the stock in the past year, according to Investing.com data.
The rally reflects a fundamental shift in how the market perceives Nokia. Once viewed primarily as a mature telecom equipment supplier, the company is now increasingly seen as a key player in the AI infrastructure space, particularly through its optical transport and high-speed data center networking solutions. These technologies, which enable the movement of large data volumes over fiber, have become a central part of Nokia's growth narrative.
The latest impetus came from Nokia's U.S.-listed ADRs, which rose 3.69% to $16.85 on Tuesday, marking a second consecutive gain and a new 52-week high. Trading volume on the ADRs reached 131.1 million shares, well above the 50-day average, indicating strong investor interest. Meanwhile, the broader Helsinki market saw more modest gains, with the Helsinki 25 index rising 0.46% to 6,592.74 points.
The rally's foundation was laid in April when Nokia reported first-quarter comparable operating profit of €281 million, a 54% increase year-over-year and above the Infront analyst consensus of €250 million. Sales to AI and cloud customers surged 49%, and CEO Justin Hotard noted that the company was tracking somewhat above the midpoint of its full-year comparable operating profit guidance. The company has since reinforced its AI focus, launching an AI Networking Innovation Lab in Sunnyvale, California, on May 21, in partnership with AMD, Lenovo, Supermicro, and Keysight.
This strategic pivot has also altered Nokia's competitive landscape. While Ericsson remains a benchmark for mobile network comparisons, traders are increasingly looking at Ciena and Arista Networks as peers, given Nokia's growing optical and data center assets tied to the AI trade.
However, the rally has brought valuation concerns to the forefront. BNP Paribas analyst Jakob Bluestone told Bloomberg that while there may be a 'mini-Arista' and a 'mini-Ciena' within Nokia, the legacy business has not disappeared. Amanda Lyons, head of research at Energy Group Capital, commented that 'the easy re-rating is gone.' According to Bloomberg, Nokia's forward price-to-earnings ratio has more than doubled to approximately 36 times from around 17 times at the start of 2026, even though AI and cloud sales accounted for only 8% of group revenue in the first quarter.
The next major test for Nokia will come on July 23, when it is scheduled to release second-quarter and first-half 2026 results, followed by third-quarter results on October 22. For now, the market is giving Nokia credit for its AI-linked growth, but the burden of proof is rising. Orders must continue to flow, margins need to improve, and the legacy mobile network business must avoid becoming a drag on overall performance.
