HELSINKI, March 27, 2026, 23:09 EET.
Nokia shares slid 5.1% to finish Friday’s session at 6.87 euros in Helsinki, coming up just above Santander’s new price target of 6.85 euros after the broker downgraded the stock to Underperform from Outperform. They’re now trading nearly flat against that target.
Nokia’s shares, once rallying to their best in almost ten years after Nvidia dropped $1 billion for a 2.9% stake last October, are feeling the pressure. With that move, Nokia found itself front and center among Europe’s AI network plays—a “strong endorsement,” as PP Foresight’s Paolo Pescatore put it back then. But now? Investors are wondering just how much of the AI narrative is already baked into the stock. Reuters
Analysts started splitting on Thursday. SEB bumped its target up to 7.40 euros but dropped Nokia to Hold from Buy. Over at Jefferies, the firm stuck with a Buy rating and lifted its target to 8.80 euros, pointing to robust optical networking growth—the fiber routes moving data between data centers—and flagged that Nokia’s guidance might get topped in 2027.
Friday’s session leaned defensive. Grupo Santander’s Carlos Trevino, per The Fly via TipRanks, downgraded Nokia to Underperform, flagging an opportunity to “take profits” after the surge in telecom-equipment stocks. TipRanks
Still, the drumbeat of AI news isn’t slowing down. Earlier this month, Reuters said Nokia lined up fresh deals with TIM Brasil and Deutsche Telekom, as telecoms ramp up 5G upgrades to chase AI-driven demand. The move sharpens Nokia’s rivalry with Sweden’s Ericsson in this space.
Thursday brought a more modest move on the enterprise AI front. Nokia’s Paul Alexander, vice president, called the network a “critical foundation” for both performance and security in a joint statement with Stelia AI, as firms distribute AI workloads between cloud platforms and on-site infrastructure. Business Wire
So far, the market hasn’t seen that reflected in earnings. Back in January, Reuters noted Nokia’s comparable operating profit — the company’s adjusted metric — slipped 3% to 1.05 billion euros for the fourth quarter. Optical Networks jumped 17%, but even so, management’s forecast for 2026 puts comparable operating profit in the 2 billion to 2.5 billion euro range.
Back in January, Jefferies described that outlook as “somewhat conservative.” Shares slid Friday, a sign that at least some investors aren’t ready to buy into Nokia’s AI narrative until there’s real evidence that optical and data-center gains will actually translate into sustained profit growth. Reuters
Jitters across wider markets weighed on sentiment. The pan-European STOXX 600 dropped 0.9% Friday, pressured by rising oil and a worsening Middle East backdrop that’s making European growth prospects murky—sending most sectors lower.
Execution could flip the script. If Nokia’s foray into AI and optical networking starts generating revenue sooner than the Street anticipates, the recent pullback might prove short-lived. Eyes now turn to two markers: the annual general meeting on April 9, then first-quarter earnings slated for April 23. Still, should management issue another cautious outlook, the debate over whether the stock got ahead of itself will be back in play.
