HELSINKI, July 17, 2026, 15:06 EEST – Nokia Oyj (HEL:NOKIA) extended its losing streak to six consecutive sessions on Friday, with shares sliding 3.3% to €8.85. The decline brings the total drop since July 9 to approximately 21%, erasing an estimated €13.5 billion in equity value based on the company's 5.74 billion outstanding shares.
AI Spending Concerns Weigh on Telecom Sector
The selloff comes amid growing unease over the cost implications of surging artificial intelligence demand. While Nokia reported a 49% increase in first-quarter AI and cloud sales, adding €1 billion in new orders, rival Ericsson (STO:ERIC-B) has flagged rising memory chip prices tied to AI spending. CFO Lars Sandström warned that the cost pressure is being felt across the industry, including at Ericsson. Shares of Ericsson have also fallen 15.2% since July 9, reflecting the broader sector headwinds.
Nokia Underperforms Ericsson Ahead of Earnings
Nokia's stock has underperformed Ericsson by nearly six percentage points over the same period, suggesting investors are pricing in company-specific risks ahead of its second-quarter earnings report, scheduled for July 23. The broader European technology index dropped 2.3% in early Friday trading, while the STOXX 600 fell 0.6%.
Analyst Views Diverge Sharply
Analyst opinions on Nokia remain polarized. On Thursday, DNB Carnegie downgraded the stock to sell with a price target of €8.40, roughly 5% below the current share price. In contrast, SEB (STO:SEB-A) upgraded Nokia to buy with a target of €12, implying upside of nearly 36%. These divergent views highlight the uncertainty surrounding the company's near-term prospects.
High Margin Benchmark from Q1
Nokia's first-quarter results set a high bar. Comparable gross margin expanded by 320 basis points to 45.5%, while comparable operating profit surged 54% to €281 million. CEO Justin Hotard noted that the company was tracking somewhat above the midpoint of its full-year comparable profit forecast of €2.0 billion to €2.5 billion. The upcoming July report will be closely scrutinized for whether pricing, product mix, and supply chain measures can sustain margins amid rising AI-related component costs.
Market Context and Risks
The Nasdaq Helsinki remained open at the time of publication, with cash equity trading scheduled to close at 18:30 EEST. Nokia will release its Q2 results at approximately 08:00 EEST on July 23. Key risks to the downside include higher component expenses, sluggish optical demand, or weaker-than-expected guidance. Conversely, an uptick in orders or improved cost management could spark a rebound.
