Helsinki, May 28, 2026, 11:10 EEST
- Nokia shares dropped in Helsinki Thursday, giving back some gains after the stock’s strong AI rally this year made it one of the top movers in Europe.
- The OMX Helsinki 25 slipped 0.73% to 6,519.87, with Nasdaq’s Helsinki exchange open for its normal hours.
- Investors are looking at stronger growth in optical and IP networks, but the valuation is already stretched.
Nokia Oyj shares dropped in Helsinki on Thursday, pulling back after a sharp run-up linked to demand for AI data-center networking. Investors weighed how much of that new growth outlook might already be priced in.
The stock traded near 13.205 euros, off from its last close at 13.470 euros, based on Investing.com data. This came in regular Helsinki hours, with the market open 10:00 a.m. to 6:25 p.m. EEST.
Nokia is now trading as an AI infrastructure play, moving away from its image as an old telecom equipment maker. Shares had jumped over 140% this year as of Tuesday, according to The Edge, which cited Bloomberg data. That put Nokia as the fourth-best stock in the Stoxx Europe 600 and sent the shares to levels not seen since 2008.
The Finnish market traded lower. The OMX Helsinki 25 lost 0.73% to 6,519.87, according to Nasdaq index data. The price-return index covers 25 top shares on Nasdaq Helsinki and does not include dividends.
Nokia’s U.S.-listed ADRs dropped 4.74% to $15.68 on Wednesday, giving up three days of gains. The move followed a 6.40% jump Tuesday, when the stock hit a new 52-week high.
Nokia’s rally is tied to hopes the company can boost sales of optical and IP networking gear for AI data centres. Optical networks use light over fiber, and IP networks handle internet routing. Both types are in demand as cloud firms put up bigger compute clusters.
Nokia reported on April 23 that net sales to AI and cloud customers jumped 49% in Q1, and the company landed 1 billion euros in AI and cloud orders for the quarter. CEO Justin Hotard said Nokia is “increasing our growth assumption” for Optical and IP Networks as it invests to handle more demand. Nokia Corporation | Nokia
Nokia bumped up its 2026 growth forecast for Network Infrastructure net sales, now expecting 12%-14%. It still sees Optical Networks and IP Networks together adding 18%-20%. The company stuck with its full-year comparable operating profit target of 2.0 billion to 2.5 billion euros.
Some analysts are switching up the narrative, but there’s no agreement yet. Amanda Lyons, who leads research at Energy Group Capital, told The Edge, “the easy rerating is gone,” and pointed to the main question now: is there a second leg to the trade? The Edge Malaysia
BNP Paribas analyst Jakob Bluestone said Nokia is seeing some interest from cloud providers, which has led to talk of a “mini-Arista” and a “mini-Ciena” within the company. That’s a nod to Arista Networks and Ciena in the U.S. But, Bluestone also said, “the old Nokia has not disappeared either.” The Edge Malaysia
The competitive lines are clear. Ciena gives investors a purer play on optical networking demand linked to AI and cloud spending. Arista, by contrast, is seen mainly as a data-centre switching name. Nokia’s mix is still weighed down by its mobile networks business, which The Edge said drags results and still makes up over half of its sales.
Morgan Stanley analysts said targeting next year’s earnings with price targets could overlook the AI demand that may play out over a longer period. UBS analysts are sticking with a sum-of-the-parts approach, saying the market could see Nokia’s AI-linked units as more valuable than units growing more slowly. The Edge said less than half of Bloomberg-tracked analysts have a buy on the stock.
There’s a risk the AI order cycle slows down, doesn’t reach more buyers fast enough, or brings in excess supply. Nokia points to competition, changes in customer investments, component sourcing, supply-chain issues, tariffs, and currency moves as risks too. If any of these hit, a pricier stock could feel the pain.
