Nokia Oyj shares extended their recent rally on Tuesday, climbing 5.24% to €14.26 on Nasdaq Helsinki as investors continued to price in the Finnish telecom equipment maker's growing exposure to artificial intelligence infrastructure. The move followed a 9.50% surge in its New York-listed American depositary receipts (ADRs), which closed at $16.25 on Monday.
Market Context
The OMX Helsinki 25 index rose 1.37% to 6,550.74, underscoring Nokia's significant weighting in the Finnish market. In the U.S., Nokia's ADR outperformed the broader market, with the Nasdaq Composite gaining just 0.42% and the Dow Jones Industrial Average up 0.09% on Monday. Trading volume on Nokia's ADR reached 170.8 million shares, well above the 50-day average of 99.7 million.
AI and Cloud Growth
The primary catalyst remains Nokia's strong first-quarter performance in AI and cloud markets. Sales to AI and cloud customers surged 49% year-over-year, accounting for 8% of group sales. Orders from these customers reached €1 billion in the quarter. Optical Networks sales grew 20%, while Network Infrastructure sales rose 6% on a constant-currency and portfolio basis.
CEO Justin Hotard stated that demand has accelerated since Nokia's capital markets day in November, with lead times extending across the supply chain. The company now expects the addressable AI and cloud market to grow at a compound annual growth rate (CAGR) of 27% from 2025 to 2028, up from a previous estimate of 16%.
Insider Activity
An insider transaction filed with the Helsinki exchange revealed that Victoria Hanrahan, identified as an "other senior manager," acquired 44,682 NYSE-listed Nokia shares on May 26 and May 28 at a volume-weighted average price of $15.8117 per share. Such transactions are required disclosures under EU market-abuse rules.
Strategic Partnerships
Nokia's partnership with Nvidia remains a key part of the narrative. In October, the companies announced a strategic partnership under which Nvidia would invest $1 billion in Nokia to collaborate on AI-RAN (artificial intelligence radio access network) technology. T-Mobile U.S. is expected to test the technology in 2026.
Peer Comparison and Outlook
Among peers, Ericsson's Stockholm-listed B shares rose 2.16% on Monday, while Cisco closed at $121.33 in New York. Nokia maintained its 2026 comparable operating profit outlook of €2.0 billion to €2.5 billion. The company expects Network Infrastructure sales to grow 12% to 14% in 2026, with Optical Networks and IP Networks combined up 18% to 20%.
Risks and Catalysts
Nokia's outlook faces several risks, including competitive pressure, changes in customer network spending, component procurement issues, supply-chain disruptions, tariffs, currency fluctuations, and broader macroeconomic factors. Any slowdown in AI-cloud orders or delays in converting those orders to revenue could test the current valuation.
The next major catalyst is Nokia's second-quarter and first-half 2026 results, scheduled for July 23. Third-quarter results are due on October 22. Until then, the market will focus on whether the AI story translates into margin expansion, not just order growth.
