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Nokia Hits 16-Year High on AI Data‑Center Networking Boom

Investors are betting Nokia's pivot to optical and IP gear for AI data centers will drive faster growth.

Overview

  • Nokia shares climbed to their highest level in about 16 years, with trades reported around $12 as the stock extended a multi‑day rally.
  • Nokia’s Q1 report showed AI and cloud revenue up 49% year over year, more than €1 billion in new orders, €4.5 billion in net sales, and €281 million in comparable operating profit.
  • Management lifted its view of the AI and cloud addressable market to 27% annual growth through 2028, citing accelerating demand that is stretching supply lead times.
  • The Infinera acquisition is integrating ahead of schedule, Optical Networks grew about 20% in Q1, and Nokia is investing in an indium phosphide plant in San Jose to expand capacity.
  • Nvidia disclosed a $1 billion stake in Nokia, and post‑earnings signals for investors included an Argus upgrade to Buy with a $15 target and a €0.04 dividend payable May 7.