HELSINKI, May 4, 2026, 19:01 EEST
Nokia surged 6.3% in Helsinki on Monday, hitting its highest level in 17 years. The stock’s latest run follows the company’s recent focus on AI data-center infrastructure and its decision to divest a minor fixed-wireless device segment. U.S.-listed ADRs last changed hands at $13.39 by 1546 GMT, topping the previous session’s close.
It’s a shift that’s catching attention: investors are beginning to look at Nokia less as just another telecom gear name and more as an AI data center supplier. Hyperscalers—the big cloud players—are ramping up demand for the kind of high-capacity optical links Nokia provides, critical for shifting data across chips, servers, and entire sites. Last month, Reuters noted Nokia shares hit their highest level since 2010 after better-than-expected first-quarter profits and a jump in AI-related orders.
On April 30, Nokia and Inseego announced that Inseego will acquire Nokia’s fixed wireless access customer-premises equipment division—these are the devices homes and businesses use for mobile broadband connections. As part of the deal, Nokia expects to collect roughly a 7% stake in Inseego at closing, then put in an additional $10 million investment, bringing its ownership to about 11%. Closing is targeted for the fourth quarter. Nokia emphasized the deal isn’t financially material for the company.
Konstanty Owczarek, Nokia’s chief corporate development officer, said the move was part of the company’s push to “simplify its operational model” while sharpening its focus on AI-driven network infrastructure. Inseego CEO Juho Sarvikas described the acquisition as a “transformative step” for the U.S. wireless broadband player. Nokia Corporation | Nokia
The deal lines up with Nokia’s more focused approach on capital allocation. In the first quarter, comparable net sales ticked up 4% on a constant-currency, portfolio-adjusted basis. Network Infrastructure revenue rose 6%. Optical Networks had a stronger showing, up 20%. Sales tied to AI and cloud clients surged 49%, now accounting for 8% of Nokia’s overall sales. Orders from those customers reached 1 billion euros in the quarter.
Chief Executive Justin Hotard said demand has “accelerated significantly” compared with what Nokia saw at its November capital markets day. Nokia now projects the AI and cloud addressable market climbing at a 27% compound annual rate from 2025 to 2028, a jump from the previous 16% estimate. The company also lifted its 2026 Network Infrastructure sales growth target, now aiming for 12%-14%, up from the earlier 6%-8% range. Nokia Corporation | Nokia
Morningstar’s Martin Szumski bumped up his fair value call on Nokia to 7.30 euros from 6.50 euros on Monday, leaving Ericsson unchanged at 105 Swedish crowns. Szumski pointed out that both names are still slugging it out in the tight-margin mobile network equipment market. Even so, he argued Nokia has an edge when it comes to tapping AI demand, thanks to its optical networking arm—something Ericsson’s focus on cloud software and enterprise can’t quite match.
Peer comparisons tell the story. Mobile network capex is still sluggish, and according to Morningstar, don’t expect much change—mobile networking demand likely stays stagnant until 6G starts rolling out, probably closer to 2030. Factoring in non-mobile units, though, Morningstar projects Nokia with 4% average annual revenue growth and Ericsson with just 1% over the coming decade.
U.S. investor chatter has picked up, too. On April 28, CNBC’s Jim Cramer called Nokia “a winner” and declared it “back,” according to TheStreet, after stronger-than-expected, AI-driven earnings thrust the old-guard telecom maker back into the spotlight. TheStreet
Nokia’s AI push didn’t start this quarter. Back in October 2025, Nvidia put $1 billion into a 2.9% stake in Nokia, tying the deal to a partnership on AI and data-center gear. Hotard told Reuters at the time that products from the collaboration could begin generating revenue as early as 2027. Both Nokia and Ericsson supply data center hardware, but with Nvidia in its corner, Nokia drew more attention from investors seeking exposure to AI infrastructure.
There’s a risk here: shares have outrun the actual evidence. Morningstar flagged Nokia as overvalued, pointing to the AI frenzy, though it still gives the edge to Nokia’s AI-driven optical business over Ericsson’s. The Inseego deal isn’t finalized yet either, and Nokia itself downplayed its financial impact. That leaves the bigger question hanging—can hyperscaler demand and optical orders keep the momentum going?
