Helsinki, June 15, 2026 – Nokia Oyj shares edged up 1% in Helsinki trading on Monday, building on a sharp 10% rally from the previous session. The stock closed at €13.095, fluctuating between €12.960 and €13.380 during the day. Despite the back-to-back gains, the shares remain below the 52-week high of €14.995 reached earlier this month.
The upward momentum was fueled by continued enthusiasm around artificial intelligence and cloud computing, which have become central to Nokia's growth narrative. The company's U.S. ADR also jumped 5.04% on Friday to $14.80, outperforming the broader market as the Nasdaq gained 0.31% and the Dow rose 0.70%. However, the ADR is still down 15.19% from its 52-week peak of $17.45.
AI and Cloud Driving Growth
Investors are focusing on Nokia's expanding role in AI infrastructure, with orders from hyperscale data center operators boosting demand for optical transport and IP networking equipment. In the first quarter, Nokia reported a 4% rise in comparable net sales at constant currency and portfolio, with Network Infrastructure sales up 6% and Optical Networks surging 20%. Net sales to AI and cloud customers jumped 49%, and the company booked €1 billion in orders from these clients during the quarter.
CEO Justin Hotard has raised growth targets as part of a strategic shift. "We are increasing our growth assumption for Optical and IP Networks and we are investing to capture accelerating demand from AI & Cloud customers," Hotard said. Nokia now expects Network Infrastructure sales to grow 12%–14% by 2026, with combined growth for Optical Networks and IP Networks at 18%–20%. The company maintained its 2026 comparable operating profit outlook of €2.0 billion to €2.5 billion.
Analyst Views Mixed
Wall Street remains divided on Nokia's prospects. JPMorgan analyst Sandeep Deshpande raised his U.S. price target to $21 from $14, maintaining an Overweight rating, citing stronger orders and the optical network business. However, the average Helsinki 12-month price target stands at €10.243, with a Neutral rating from analysts—11 buys versus 6 sells—suggesting much of the upside may already be priced in.
Nokia's addressable market in AI and cloud is now seen growing 27% per year from 2025 to 2028, up from an earlier projection of 16% annually. This accelerated growth outlook has driven the stock to levels not seen since 2010.
Risks Remain
Despite the bullish AI narrative, Nokia shares appear vulnerable to a pullback if negative news emerges. Key risks include intense competition, shifts in customer network budgets, supply chain and chip costs, currency fluctuations, tariffs, and geopolitical tensions. Additionally, AI-driven growth has not yet materialized in Nokia's Mobile Infrastructure division, where first-quarter Radio Networks were flat. Growth was concentrated in Core Software and Technology Standards.
The stock is trading above the consensus price target in Helsinki, indicating that buyers are betting heavily on the AI story. However, margins could tighten as Nokia increases spending to secure new business.
Upcoming Catalyst
All eyes are now on Nokia's second-quarter and first-half 2026 earnings, scheduled for release on July 23. Investors will be looking for confirmation that AI and cloud demand remains robust and that Optical and IP Networks can meet the company's elevated growth forecasts. The results will be crucial in determining whether the recent rally is sustainable or if valuation concerns will ultimately cap further gains.
