HELSINKI, July 16, 2026, 16:21 (EEST)
Nokia Oyj (NOKIA:HEL) traded around €9.43, down 3.6%, on Thursday afternoon. The stock has lost 10.7% across three sessions. Helsinki trading remained open, while the OMX Helsinki 25 slipped 0.3%.
The selloff exposes a timing gap. Nokia’s AI-RAN solutions enter operator trials late this year. Commercial availability starts in 2027. Telefonaktiebolaget LM Ericsson Class B (ERIC-B:STO) is warning about costs now.
Ericsson said AI demand is lifting memory and custom-chip costs. Its shares have fallen 14.3% across three sessions. The warning matters for Nokia. Component costs may arrive before AI-RAN revenue.
Nokia reports second-quarter results on July 23. It still guides for €2.0 billion to €2.5 billion of comparable operating profit. Management expects Q2 to contribute 12% to 16% of that total.
At the outlook midpoint, Q2 comparable operating profit would span €270 million to €360 million. That is a calculation, not company guidance. The table uses intraday prices and Monday’s closing levels.
| Measure | Nokia | Ericsson B |
|---|---|---|
| July 16 price | €9.43 | SEK 96.64 |
| July 16 move | -3.6% | -0.7% |
| Three-session move | -10.7% | -14.3% |
| Trailing P/E | 66.6x | 12.8x |
| AI timing | Pilots end-2026; commercial in 2027 | Cost inflation now; Q3 margin pressure |
Prices are intraday, while the earnings multiples are trailing. Those ratios are not directly comparable. Still, Nokia’s multiple exceeds Ericsson’s by more than five times. That raises the proof burden before next week’s report.
Nokia built the platform with NVIDIA Corp NVDA:NASDAQ. Spectral efficiency, or data carried per unit of spectrum, has improved above 20%, Nokia says. It targets 50% in 2027 and more than 100% in 2028. Upgrades would use software subscriptions.
Chief Executive Justin Hotard called AI-RAN “the biggest innovation in radio in decades.” Omdia analyst Rémy Pascal called it “an important step in bringing AI-RAN from industry vision to commercial reality.” Nokia Corporation | Nokia
Ericsson’s Q2 sales fell 6% to 52.7 billion Swedish crowns. Adjusted gross margin edged higher to 48.4%. Management still expects Networks margin pressure in Q3. CFO Lars Sandström told Reuters, “The whole AI build-out is putting quite the pressure on the whole industry, including us.” ericsson.com
Risks remain. Nokia’s efficiency claims come from controlled internal tests. Operator trials may deliver smaller gains. Final product pricing is undisclosed, while operators remain wary of power use. Component inflation could squeeze margins before subscriptions scale.
The next test arrives July 23 at 08:00 EEST. Investors will focus on Network Infrastructure growth, margins and cost commentary. Nokia targets 12% to 14% Network Infrastructure sales growth this year. Current price action suggests 2026 execution outweighs the 2027 promise.
