Nokia Oyj's stock surged approximately 10% in early trading on Thursday in Helsinki, extending a rally driven by strong demand for AI-related infrastructure. The Finnish telecommunications equipment maker's shares approached levels last seen 16 years ago, according to MarketScreener data. On Wednesday, Nokia's U.S. ADR closed up 11.69% at $14.71.
Cisco's AI Orders Boost Network Trade
The catalyst for the latest move came from Cisco Systems Inc., which reported it has already booked $5.3 billion in AI infrastructure orders from hyperscale cloud providers this fiscal year. Cisco raised its full-year outlook, now expecting AI-related orders to reach $9 billion, up sharply from its previous target of $5 billion. Networking product orders surged more than 50% in the third quarter, signaling robust demand for routers, switches, and optical equipment—areas where Nokia directly competes.
Jefferies analyst William Beavington noted that Cisco's positive outlook on orders and sales is equally favorable for Nokia, given their overlapping product portfolios in routers, switches, and pluggable transceivers. This convergence is reshaping investor perception, moving Nokia beyond its traditional image as a slow-moving telecom equipment provider into a key beneficiary of the AI data center buildout.
Nokia Launches Agentic AI Tools for Broadband
On Tuesday, Nokia introduced new agentic AI features designed for fixed broadband networks. These software agents can autonomously reason through network faults, reduce manual planning, and automate operations. The company leverages its experience managing over 600 million broadband lines to underpin these capabilities, which will be integrated across its Altiplano, Corteca, and Broadband Easy platforms.
Sandy Motley, President of Fixed Networks at Nokia, emphasized that these tools put broadband management “at the fingertips” of technicians, helpdesk teams, and network engineers. According to Nokia, the AI tools have the potential to boost first-contact helpdesk resolution rates above 50%, resolve network incidents within five minutes, and cut return visits to customer sites in half.
Leadership Change at Mobile Infrastructure
Nokia also announced a leadership reshuffle on Wednesday, appointing Siemens executive Emma Falck as the new President of Mobile Infrastructure, effective September 1. Falck will be based in Espoo and report directly to CEO Justin Hotard. Hotard highlighted the ongoing AI transition, stating that networks must become “AI-native by design” as 5G Advanced and 6G technologies roll out. Falck noted that customers seek partners who can translate technology roadmaps into tangible performance, especially as networks evolve to meet AI-driven demand.
Strong First-Quarter Results Set the Stage
Nokia’s recent gains build on strong first-quarter results reported in April. Comparable operating profit jumped 54% to €281 million, surpassing analyst expectations. Sales from AI and cloud clients surged 49%, and Nokia secured €1 billion in new orders from that segment. The company raised its forecast for the AI and cloud market, now expecting the addressable segment to grow at a 27% annual rate from 2025 through 2028, up from 16% previously. For network infrastructure, Nokia targets 12% to 14% growth in 2026, compared to an earlier 6% to 8% range.
Legal Victory and Risks
Adding to the positive news, Nokia scored a legal victory on Tuesday when the UK Court of Appeal dismissed lawsuits from Acer and Asus over video-coding patents, following Nokia’s challenge to a previous High Court decision. However, risks remain. Nokia’s stock has more than doubled this year, nearing Jefferies’ €14.20 bull case target. Any slowdown in AI-fueled orders, telecom pushback on automation budgets, or a loss of momentum at Cisco could leave the rally vulnerable to a sharp correction.
