ESPOO, Finland, August 13, 2026, 01:49 CEST — Trading in U.S. markets remains halted.
- Nokia ADRs climbed 9.2% on Wednesday, increasing the company’s market value by approximately $5.0 billion.
- The decision came after optical-component manufacturer Lumentum issued a positive outlook.
- Nokia’s increase was 3.1 times greater than the AI and cloud orders projected to be converted in under a year.
Nokia Oyj NYSE:NOK rose 9.2% to $10.32 on Wednesday, boosting its market capitalization by roughly $5.02 billion. Volume climbed to 115.6 million shares, surpassing the average by 34%.
The trigger originated beyond Nokia. Lumentum Holdings Inc. NASDAQ:LITE posted a positive outlook after robust AI data-centre demand boosted its optical component revenues. Nokia’s shares in Helsinki climbed 9.6% during the same trading session.
The rally came at a steep cost. Nokia’s shares added roughly €4.35 billion in market value at Wednesday’s exchange rate. This represents 3.1 times the €1.4 billion in AI and cloud bookings that Nokia anticipates it will turn into revenue within the next year.
Wednesday market action
| Measure | Wednesday | Comparison |
|---|---|---|
| Nokia ADR close | $10.32 | up 9.21% |
| Estimated market-value gain | $5.02 billion | €4.35 billion |
| Trading volume | 115.64 million | 33.8% above average |
| Nasdaq Composite | gained 0.54% | Nokia beat index by 8.67 points |
| Distance from 52-week high | 40.9% lower | 52-week high: $17.45 |
Lumentum posted quarterly revenue of $1.01 billion, marking an increase of 109% compared to the same period last year. The company’s revenue midpoint forecast for the next quarter stands at $1.25 billion, indicating sequential growth of 23.8% and suggesting demand continues to outpace available optical supply.
The optical takeaway
| Data point | Value | Investor context |
|---|---|---|
| Lumentum quarterly revenue | $1.01 billion | Up 109% from a year ago |
| Lumentum next-quarter midpoint | $1.25 billion | 23.8% higher than last quarter |
| Nokia Q2 AI & Cloud sales | €446 million | Annual increase of 105% |
| Nokia AI & Cloud orders | €2.8 billion | 50% projected for delivery within 12 months |
| Market-value gain / expected conversion | 3.1 times | Stock move versus €1.4 billion benchmark |
Nokia saw operating performance strengthen as the rally began. Net sales for the second quarter climbed 8% to €4.82 billion. Comparable operating profit rose by 18% to €434 million, surpassing the €382 million expected by analysts.
AI & Cloud drove the strongest growth, with sales surging to €446 million, more than twice the previous figure. Chief Executive Justin Hotard stated that order intake was €2.8 billion, with 50% anticipated to be realised as revenue over the next 12 months. Supply continues to be the primary limitation.
Nokia’s performance overview
| Q2 measure | 2026 | 2025 | Change |
|---|---|---|---|
| Net sales | €4.815 billion | €4.443 billion | +8% |
| Comparable operating profit | €434 million | €367 million | +18% |
| Comparable operating margin | 9.0% | 8.3% | +70 basis points |
| Reported operating profit | -€50 million | €147 million | Shifted to loss |
| Net cash | €2.776 billion | €2.879 billion | -€103 million |
The distinction is significant. Comparable profit increased, yet restructuring measures drove reported operating profit into negative territory. After shifting its operating model, Nokia sped up cost initiatives. The charge does not remove commercial momentum, though it postpones the conversion to clean earnings.
Nokia maintained its operational guidance, projecting a comparable operating profit for 2026 between €2.1 billion and €2.6 billion. The outlook reflects a technical adjustment that increased the figure by €100 million due to discontinued operations, not due to improved underlying forecasts.
Analyst ratings
| Analyst | Firm | Rating | Target |
|---|---|---|---|
| Jim Kelleher | Argus Research | Buy | $15 |
| Tim Savageaux | Northland Securities | Buy | $20 |
| Christian Schwab | Craig-Hallum | Buy | $15 |
| Oliver Wong | Bank of America | Buy | €16 |
| Sandeep Deshpande | JPMorgan | Buy | $21 |
Every analyst followed by Google Finance – five in total – assigns a buy rating to Nokia. Their mean price target stands at $17.89, representing a 73% premium over Wednesday’s closing price. The analyst group is limited, and the targets are listed in various currencies.
The overall market provided support as well. The Nasdaq advanced 0.54%, with semiconductor stocks climbing 2.5%. However, Nokia outpaced by 8.67 points, indicating investors viewed Lumentum’s outlook as particular to the optical-network sector.
Risks: Lumentum’s outlook indicates broader sector trends rather than reflecting a direct Nokia contract. Supply constraints might push back revenue timing. Margin pressure may result from memory prices, and profit figures remain unpredictable due to ongoing restructuring. Nokia shares are still trading 41% under their 52-week peak.
The focus now shifts to conversion. Investors are looking for Nokia’s €2.8 billion order book to translate into revenue and cash flow. Much of that expectation is already reflected in Wednesday’s share price rise.
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