Bank of America Upgrades Nokia to Buy on Optical and AI Data-Center Thesis
The call signals a pivot toward higher‑growth optical and IP networking tied to cloud demand.
Overview
- A Monday upgrade to Buy lifted Nokia shares about 2% in Helsinki.
- Bank of America raised its price target to €10.70 from €6.87 using a sum‑of‑the‑parts valuation that gives more weight to Optical and IP Networks.
- The thesis leans on Optical Networks growth of about 17% a year through 2028 and rising data‑center demand from AI workloads.
- BofA cites the 2025 Infinera acquisition for deeper U.S. cloud access and notes a Nvidia partnership focused on AI‑RAN without near‑term revenue in its model.
- Its 2026–2028 EPS forecasts sit 13–15% above consensus, suggesting investors may not yet reflect Nokia’s optical pivot in estimates.