Nokia's U.S.-traded ADR declined again on Wednesday, sliding 3.25% to $13.40, extending a 5.07% loss from the prior session. The two-day selloff has pulled the stock 23.21% below its 52-week high of $17.45, reached on June 3, according to market data.
The latest downturn comes as investors reassess the competitive landscape in AI-driven networking. A Reuters report highlighted that Nokia and rival Ericsson face fresh scrutiny after Nvidia signaled plans to develop technology for future mobile networks. Nvidia, already a key partner and shareholder in Nokia, is expanding its role from AI chip supplier to a potential telecom infrastructure player, raising questions about Nokia's long-term position in the AI value chain.
In Helsinki trading, Nokia shares closed at €11.740, down 1.92% on the day, with a 52-week range of €3.458 to €14.995. The stock remains well above year-ago levels but has lost 19.59% over the past week. European telecom stocks fell 2% on Tuesday, with Nokia and Ericsson among the biggest decliners on the STOXX 600, according to Reuters.
The broader market also weighed on sentiment. Major U.S. indexes closed down more than 1% on Wednesday, with the semiconductor index dropping 3.6%. Nvidia and Broadcom led the S&P 500 lower as valuation concerns resurfaced. Nokia's recent gains had been tied to AI data center and AI radio access network (AI-RAN) investments, but the cooling AI trade made it harder for the market to price in company-specific positive developments.
Nokia's AI-RAN Push and New Products
On June 9, Nokia announced a partnership with Indosat Ooredoo Hutchison to upgrade the Indonesian carrier's mobile network with advanced 5G radio access technology. The AI-RAN initiative places AI hardware alongside mobile network gear, enabling operators to run AI and connectivity tasks closer to users. Nokia said it aims to conduct field trials in Indonesia by the end of 2026, using Habrok and Pandion radios, Levante basebands, and centralized RAN platforms. Mid-band 5G coverage is expected to reach about 80% of Indosat's network over the next three and a half years.
CEO Justin Hotard described the deal as a step toward networks focused on "connectivity, intelligence and scale." However, investors appeared unimpressed, as the announcement lacked updated 2026 earnings targets. Nokia also disclosed a transfer of 216,896 treasury shares to equity plan participants at no cost, leaving the company with 132,136,437 own shares.
Separately, Nokia launched Deepfield Genome Shield, an automated security system designed to block DDoS attacks by detecting botnet traffic from compromised home devices. Reddot Technologies was among the first customers. The product adds to Nokia's AI-era portfolio but does not alter the company's financial guidance.
Financial Outlook and Key Catalysts
Nokia's first-quarter results showed comparable operating profit of €281 million, up 54% year-over-year and above the €250 million analyst consensus. Net sales to AI and cloud customers jumped 49%, with €1 billion in orders booked in the quarter. The company reiterated its 2026 comparable operating profit target of €2.0 billion to €2.5 billion and expects Network Infrastructure net sales to rise 12% to 14%, with Optical and IP Networks growing 18% to 20%.
In October 2025, Nvidia announced a $1 billion investment in Nokia for a 2.9% stake tied to an AI and data center agreement, sending Nokia shares up 20.86%. Hotard said revenue from the new equipment should begin in 2027. However, the evolving competitive dynamic with Nvidia could shift supply chain leverage, and telecom operators may delay AI-RAN orders, adding risk to Nokia's rally.
Nokia's Q2 and half-year results are scheduled for July 23, marking the next major catalyst. Investors will be watching for evidence that AI and cloud orders, optical network demand, and the Nvidia-related mobile network plan are translating into margin improvement and higher free cash flow. The bar is high after the stock has been trading as an AI infrastructure play.
