Nokia Oyj is poised for a pivotal trading session on Monday as Helsinki markets reopen after a holiday-shortened week. The stock closed Friday at 11.905 euros, representing an 8.8% gain from May 8, though it slipped 0.13% on the final trading day of the week. The OMX Helsinki 25 index finished at 6,272.91, up 0.5% from the prior week.
The recent rally has been fueled by strong first-quarter results, with Nokia reporting a 49% surge in sales to AI and cloud customers. The company also raised its 2026 growth target for Network Infrastructure to 12%-14%, underscoring its transformation from a traditional telecom equipment provider to a key player in AI infrastructure.
CEO Justin Hotard emphasized in the earnings release that Nokia is "investing to capture accelerating demand from AI & Cloud customers," noting that demand has increased since the company's capital markets day in November. This shift has repositioned Nokia in the eyes of investors, who now view it as more of an AI-infrastructure play rather than solely a telecom gear stock.
The positive sentiment was reinforced by Cisco's 17% surge to a record high on Thursday after the networking giant raised its full-year revenue outlook and increased its AI infrastructure orders forecast to $9 billion, up from $5 billion. This boosted interest across the optical, routing, and data-center network supply chain, benefiting Nokia as well.
Nokia also announced a management change last week, appointing Emma Falck as president of Mobile Infrastructure, effective September 1. Falck, who joins from Siemens, will oversee radio networks and core software. On Wednesday, Hotard stated that networks must be "AI-native by design" for 5G Advanced and 6G, meaning AI must be integrated from the outset.
Additionally, Nokia introduced new agentic AI tools for home and broadband networks, which the company describes as software capable of acting on tasks rather than just responding to prompts. The company leverages insights from over 600 million broadband lines deployed globally.
However, risks are mounting. According to MarketScreener, the average analyst price target for Nokia is 9.238 euros, well below Friday's close of 11.90 euros, even though the average rating remains "outperform." This gap leaves limited buffer if AI orders disappoint, telecom spending declines, or a broader AI stock pullback occurs.
With no major events scheduled this week, the next key date on Nokia's investor calendar is July 23, when the company reports second-quarter and first-half results. Monday's trading will be closely watched to determine whether Friday's decline was merely profit-taking or a signal that the AI rally has outpaced fundamentals.
