Nokia Oyj shares edged lower on Thursday, giving back a portion of their recent AI-driven gains despite the Finnish telecom equipment maker opening a new research facility in the United States. The stock traded at 11.650 euros, down 0.7% from the prior close of 11.735 euros, with a daily range of 11.550 to 11.715 euros, according to Investing.com data.
The decline came as the OMX Helsinki 25 index edged up 0.06% to 6,389.30, leaving Nokia underperforming the local benchmark. The move follows a strong April earnings rally that lifted Nokia shares to a 16-year high.
New Lab Targets AI Networking Growth
Nokia announced the opening of its AI Networking Innovation Lab in Sunnyvale, California, designed to help partners test and validate data-center network designs for large-scale AI training and real-time inference. The lab aims to address growing demand from cloud operators and enterprises for high-performance networking solutions.
Early technology partners in the lab include AMD, Keysight, Lenovo, Nscale, Supermicro, and Weka. Rudy Hoebeke, Nokia’s vice president of software product management, described the launch as a “major milestone” for the company’s AI networking strategy. AMD executive Travis Karr emphasized that an “open, standards-driven approach” could help customers avoid vendor lock-in.
Strong AI and Cloud Orders Drive Recent Rally
Nokia’s first-quarter results, reported last month, showed why investors have been optimistic. Comparable operating profit rose 54% to 281 million euros, beating analysts’ average estimate of 250 million euros in an Infront poll. Net sales from AI and cloud customers surged 49%, and the company booked 1 billion euros in orders from those customers during the quarter.
Nokia maintained its full-year comparable operating profit outlook of 2.0 billion to 2.5 billion euros. The company also raised its 2026 growth assumption for Network Infrastructure to 12% to 14%, with Optical Networks and IP Networks combined expected to grow 18% to 20%. Chief Executive Justin Hotard said Nokia is investing to capture “accelerating demand” from AI and cloud customers.
Share Transfer and Competitive Landscape
In a separate filing late Wednesday, Nokia disclosed the transfer of 975,289 treasury shares to participants in equity-based incentive plans. After the transfer, Nokia held 132,353,333 of its own shares.
Competition in the AI networking space remains intense. Cisco shares hit a record last week after the U.S. networking company raised its annual revenue forecast, reporting AI-related orders from hyperscalers reached $5.3 billion so far this fiscal year, with an expected total of $9 billion. Arista Networks is another key benchmark, with demand for its Ethernet switches and routers rising as companies increase AI infrastructure investment.
Risks and Outlook
Despite the positive momentum, Nokia faces risks including competitive intensity, customer investment swings, product-roadmap pressure, semiconductor procurement challenges, and supply-chain disruptions. A slowdown in cloud capital spending, or delays in converting lab initiatives into commercial deployments, could make the recent share-price gains appear stretched.
Nokia’s ability to sustain its AI-driven growth will depend on converting its lab partnerships into tangible orders and maintaining its competitive edge against established players like Cisco and Arista Networks.
