Nokia Oyj (HEL: NOKIA) experienced a split trading session on Wednesday, with its Helsinki-listed shares edging higher while its US-listed American Depositary Receipts (ADRs) declined for a second consecutive day. The mixed performance comes as the Finnish telecommunications equipment maker continues to pivot toward artificial intelligence (AI) infrastructure, announcing two significant investments in optical networking and subsea cable capacity.
In Helsinki, Nokia shares closed at €12.04, up 0.29% from the previous session. The stock traded between €11.86 and €12.41 during the day, while the OMX Helsinki 25 index, which tracks Finland's leading blue-chip companies, rose 0.26% to 6,324.03. The modest gains in Helsinki contrast with the performance of Nokia's US ADRs, which fell 1.07% to $13.83 in New York trading. The ADR has now declined 5.67% over the past two sessions and remains 20.74% below its 52-week high of $17.45 reached on June 3.
Nokia's recent strategic moves underscore its efforts to capitalize on the AI boom by expanding its optical networking and subsea cable capabilities. The company announced plans to expand its advanced test and packaging operations for photonic chips at its facility in Allentown, Pennsylvania. This $30 million investment, supported by state aid and a federal CHIPS investment tax credit, is expected to nearly double the workforce at the site to over 500 employees and increase output by as much as tenfold. New capacity is anticipated by the end of the third quarter.
Photonic chips, which use light to transmit data across optical networks, are a critical component in AI data centers and high-speed communications. Nokia CEO Justin Hotard emphasized the transformative impact of AI on network infrastructure, stating in the release, “The AI supercycle is fundamentally reshaping network and infrastructure requirements.” The expansion in Allentown positions Nokia to meet growing demand for advanced optical components that enable faster data processing and lower latency.
In addition to the US expansion, Nokia announced a major subsea cable upgrade in Southeast Asia. Symphony Communication has selected Nokia to upgrade the Malaysia-Cambodia-Thailand subsea cable system using Nokia's PSE-6 coherent optics technology. The upgrade will boost capacity to up to 30 terabits per second per fiber pair—approximately three times the capacity of older systems—while reducing power consumption by 60%. Nokia's country manager in Thailand, Ajay Sharma, said the upgrade will deliver “advanced, trusted connectivity across Southeast Asia,” while Symphony CEO Alex Loh highlighted the project's ability to provide “unmatched capacity and reliability.”
The broader market context for Nokia remains challenging. The company is attempting to move beyond the slower growth in 5G carrier spending and pivot toward AI-driven demand for optical hardware and network capacity. However, investors remain cautious, with Nokia's stock still trading well below its recent highs. The company left its 2026 comparable operating profit target unchanged at €2.0 billion to €2.5 billion in its first-quarter update, signaling that the financial benefits of the AI strategy may take time to materialize.
Competitor reactions were mixed on Wednesday. Ericsson's US shares fell 3.0% after the Swedish network equipment maker announced a CEO change, while Ciena, a US optical networking firm, gained 1.4%. The divergent performance among peers highlights the uncertain outlook for the telecommunications and networking sector as companies invest heavily in AI infrastructure.
Risks to Nokia's stock include potential delays in converting AI and cloud orders into revenue, as well as cost pressures on margins from supply chain constraints and infrastructure build-outs. The company's ability to execute on its strategic initiatives and demonstrate tangible financial results will be key to restoring investor confidence. Nasdaq Helsinki is scheduled to be closed on Friday, June 19, for Midsummer Day, with regular trading hours resuming on Monday.
