HELSINKI, June 4, 2026 – Nokia Oyj continued its upward momentum on Wednesday, closing 2.39% higher at €14.805 on the Helsinki Stock Exchange. The stock has now gained approximately 18.5% over the first three trading days of June, as investors increasingly focus on the company's artificial intelligence (AI) growth narrative. The broader OMX Helsinki 25 benchmark index rose 0.61% to close at 6,602.84.
Strong Analyst Support
Nokia's recent rally has pushed its share price well above most sell-side targets. On Wednesday, Nordea lifted its price target to €15.7 from €10.5, maintaining a buy recommendation. However, according to MarketScreener, the consensus estimate from 23 analysts stands at €9.815, indicating that the stock has significantly outperformed expectations.
U.S. ADR Performance
In the U.S., Nokia's American Depositary Receipts (ADRs) traded down 13 cents to $16.73 after reaching a session high of $17.44. Trading volume surged to 146.7 million shares. The 52-week high is $17.45, according to Yahoo Finance.
Earnings and AI Focus
The rally began with Nokia's first-quarter earnings report in April, rather than any new contract announcements this week. Reuters reported that Nokia's comparable operating profit for the first quarter rose 54% to €281 million, surpassing the average analyst estimate of €250 million from an Infront poll. Sales to AI and cloud customers increased by 49% year-over-year.
CEO Justin Hotard emphasized the company's commitment to AI-driven growth during the earnings call: "We are increasing our growth assumption for Optical and IP Networks and we are investing to capture accelerating demand from AI & Cloud customers." The company is focusing on optical networks—fiber-based systems that enable high-speed data transmission—as a key growth area.
Nvidia Stake and Strategic Shift
In a significant development, Nvidia invested $1 billion for a 2.9% stake in Nokia last year, with plans to jointly develop AI networking solutions. Nvidia CEO Jensen Huang described the move as one that would "bring telecommunication technology back to America." Paolo Pescatore of PP Foresight called it a "strong endorsement of Nokia's capabilities."
During its capital markets day in November, Nokia outlined plans to restructure into two main divisions: network infrastructure, focusing on AI and data centers, and mobile infrastructure, centered on core telecom operations. Hotard noted that "the largest hyperscalers are now spending more every quarter than top telecom operators put in over a whole year." However, analyst Atte Riikola from Inderes cautioned at the time that "market expectations were higher" following the stock's surge.
Industry Challenges and Bear Case
Ericsson, Nokia's main Swedish competitor in network equipment, provided a mixed signal for the sector. The company missed first-quarter profit forecasts in April, citing increased chip costs tied to AI demand and weaker sales in North America.
Despite the bullish sentiment, there are bearish arguments to consider. Nokia still faces sluggish demand for 5G equipment, currency fluctuations, and tariff headwinds. It may take time for AI-driven deals to translate into bottom-line growth. After Nokia's January earnings, Jefferies described the company's 2026 operating profit target as "somewhat conservative."
The Helsinki Stock Exchange was closed between sessions at press time. Regular trading runs from 10:00 to 18:20 local time. Since June 4 is not a holiday on the 2026 Helsinki calendar, the market's next open on Thursday will test whether the rally can sustain its momentum.
